Perth homeowners are being told that the city’s property market will take a positive turn in the New Year, despite recent figures showing another fall in prices.

According to the Australian Bureau of Statistics (ABS), Perth’s property prices dropped another 1.6% in the three months to the end of the September quarter, taking the annual loss to 4%. This was the seventh consecutive quarter that annual price growth in Perth has been negative, a record for the city.

Price growth has also slowed down nationally, up 1.5% in the quarter to be up 3.5% over the year.

The decline in prices in Perth is making the city more attractive to investors from other parts of Australia, especially those who’re feeling the strain of skyrocketing property prices in Sydney and Melbourne.

These investors may have more confidence than local businesses, with National Australia Bank’s monthly survey showing a further fall in sentiment and trading conditions among Western Australian firms. The NAB survey also noted a drop in trading conditions across the country (they’re now at their lowest level since April 2015).

NAB believes that the Reserve Bank will have to cut official interest rates by another half a percentage point in the next 12 months.