Mandurah saw the biggest decline in property values in the nation last quarter but Peel valuers say the slump is better than expected and real estate agencies are recovering quickly.
According to CoreLogic, Mandurah had the largest fall in house prices in Australia, dropping 2.2 per cent in the March to May quarter.
First Choice Valuation Services owner Ken Pratt said the decline was not surprising given the "population make up in Mandurah".
"Even before COVID-19 we had a high unemployment rate and a lot of elderly so there is not a lot of loose money around to run out and buy a house," he said.
"It is also a reflection of Mandurah itself, Mandurah is not economically sustainable and it does not have a lot of big industries that support a lot of jobs."
It is better at the moment than what we expected because of the government subsidies more than anything else.First Choice Valuation Services owner Ken Pratt
But after expecting a drop of 10 to 20 per cent in property values during COVID-19, Mr Pratt said he was happy with the outcome.
"2.2 per cent over a couple of months is better than I would have thought so I am really happy about that," he said.
"It is better at the moment than what we expected because of the government subsidies more than anything else.
"I think until September comes and the government withdraws its' subsidies that is when we will get a better idea of how COVID-19 impacted property values."
With the market and interest rates low, Kevin Green Real Estate licensee Darren Ahearn said the number of houses selling this month was astronomical.
"It is not just land sales doing well, established houses are also being snapped up."
"We are running at double what we normally sell with more than a sale a day for the month of June.
"This month we have sold 13 blocks, of which eight were in Tuckey Cove plus we sold 21 houses."
With Mandurah houses and land highly sought after, real estate agents are advising buyers to act quickly once they find a block or property.
After a two month delay in listings, Mr Ahean said the housing industry was now recovering quickly.
"From January to March, it was looking really good and we thought it was going to be one of our best years," he said.
"Once COVID-19 hit, that instantly stopped but now it looks like we're heading back in that direction."