Australia

Quarterly Rank: 2
Quarterly Price Change: 4.2%

Annual Rank: 10
Annual Price Change: -1.4%

Home prices have bounced back in Australia since the start of this year thanks to a commodities boom that has fueled strong demand for exports to Asia. But price growth in Sydney's residential market remains relatively lackluster, compared with other state capitals. Over the past year, the country's financial capital has witnessed softening demand in its commercial real estate sector and increased numbers of tenants subleasing space.