It is the only property market in Australia where this will happen although all other state markets will slow down until 2009 at the earliest. In 2004 Sydney house prices peaked, reaching a record high of $552,000, but since then prices have embarked on a downward spiral, largely a function of worsening affordability. House prices in Sydney had appreciated too rapidly, said Suzanna Asciak, managing director of non-bank lender ASMM, adding that she expected them to "stabilise for a while. This will have a big impact on brokers in Sydney. Some may move to Melbourne and Brisbane to generate more business," she said.

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