Australian Property Monitors reported this week that the median price of Sydney homes in select suburbs dropped by up to 25% between June and December 2008. The median price for North Bondi dropped from $1.63 million to $1.2 million or 26.38%. Middle-class Brighton-le-Sands dropped from $814000 to$660000, a 19% reduction in six months.

Volumes are also significantly down by 9% in 2008 over 2007. For the first time unit sales outpaced house sales with 36,900 units selling compared to 35,800 houses - a total of 72,700 properties. The peak in Sydney was 2002 when 105,500 properties traded. This equates to a 38% drop in volume.

Nationally there was a 16% drop in house sales last year compared to 2007 and an 11% drop in units. Only Melbourne houses and Darwin units increased last year according to John Edwards of Residex. He predicts further reductions in turnover in 2009.