With the decline in property values finally slowing down, Australia's housing markets appear to have passed the worst - relatively unscathed.

John Edwards, CEO of Residex, said this makes residential property a solid and secure investment alternative compared to shares.

"There's a wealth of other positives occurring in the housing market which aren't happening in other investment options," he said. "A housing-led recession in Australia is not an option for our federal government - it has clearly announced its intention to put a floor under the housing market, and that it is prepared to spend and borrow whatever it takes to protect average working families' investment in their property."

Edwards also noted that Australian banks are still providing finance, although the lending criteria are stricter. "There are still quality opportunities to generate wealth from our housing markets. Rental yields are still increasing and, due to the shortage of housing across the nation, are sure to rise further," he said.

Rents surged across Australia by 12.90% over the 12 months to the end of October, according to the Residex data.