In the state of Queensland, Australia, 18 out of the top 20 suburbs for sales volume growth were in mining regions, according to PRDnationwide.

Gracemere emerged as the states top suburb for sales activity in the six months to June 2011, recording a 63% rise in sales compared to the same period of 2010.

In contrast 17 of the bottom 20 performing suburbs for the year were in South East Queensland, with the three suburbs of The Gap, Buderim and Forest Lake seeing the largest transaction declines of 57%, 27% and 28% respectively.

Aaron Maskrey, PRDnationwide research director, said: "Despite interest rates remaining on hold since November 2010, it appears that confidence was sapped in the South East Queensland property market, as the majority of the top 20 suburbs to have experienced the largest decline in sales activity are located within this region."

The fall in demand for property purchases could put pressure on the regions rental market as Maskrey said: "This could see greater investor activity as yields increase and become more attractive."