Sydney was one of the most resilient residential property markets in Australia last year, despite seeing a 2.9% decrease in the median house price for the 12 month period to September 2011, according to PRDnationwide Research.

Their report stated: “Activity fell together with consumer confidence, but prices held firm overall and forced sales accounted for only a small percent of the market. PRD noticed a continuation of the shift toward strata-titled dwellings, with increasing demand for properties in lower price brackets.”

Rental trends were positive and the average increase in median rent over the 12 month period in Greater Metropolitan Sydney equated to 5.8% for a three bedroom house, while a two bedroom unit averaged a rise of 6.4%. These figures however indicate slower growth in achieved rental returns, down from an average of 8% pa (three bedroom houses) and 8.3% pa (two bedroom units) which had been recorded over the past five years.