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2011: The year of recovery

The residential property market is showing signs of a strong recovery in 2011.

According to Australian Property Monitors senior economist Andrew Wilson, Sydney will contninue to perform well this year, with activity driven by upgraders and investors.

"Early signs of stabilisation and recovery are emerging particularly in the Sydney market. Melbourne is showing some resilience in what was expected to be a quiet period for that city," Mr Wilson said.

"Brisbane is the big surprise with reasonable levels of buying activity despite the damaging effects of the January floods. The Perth housing market however remains quiet with indications that buyer sentiment in that city is still flat."

"The high number of properties for sale in other cities indicates a continued stock hangover from the low buyer activity levels that ended 2010."

According to Mr Wilson, the mid-price and low price segments of the market remain strongest in Sydney and Melbourne, with some activity being reported in the high price segment for both the Perth and Brisbane housing markets.

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