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Prestige Australian property draws UK investors

In Australia, where property prices are high and interest rates are threatening most of the country's housing market, one area in which investors are looking favourably is the prestige property market.

One area in which there is good growth and a demand for property is on Australia's coastal property areas. These areas pose a significant investment opportunity to buyers.

Investors here see benefits over the Australian stock markets, which have seen significant turbulence in the past weeks. Properties such as these higher end pieces are more attractive to buyers from European countries.

Another area in which the Australian market is improving is the residential sector of Sydney. Sydney has gained back its title as the busiest capital city property market. Some 94,500 properties were sold there in 2007. Melbourne, which is the second closest in competition, topped 93,000 unit sales in 2007.

As reported in the Brisbane Times, RP Data's Tim Lawless had this to say about the switch. "Melbourne's performance was not bad for a market with almost 200,000 fewer properties than Sydney's 1.6 million dwellings." Then, "Sydney's brief time spent in the Number 2 position demonstrates the relative weakness of the market during the 2005/2006 period."