Australia is in a two-speed property market with strong demand in Melbourne and Sydney and uncertainty everywhere else, according to real estate group Ray White.

Ray White’s Joint Chairman Brian White said the group’s results for July reflected the uneven forces at work in real estate markets as the nation heads to a federal election. The company said sales for July were down three per cent on the corresponding period in 2009.

“The continuing attraction for property in Melbourne and Sydney now defines what 2010 has been all about,” White said in a statement. “Demand in those cities just doesn’t seem to falter, even though the top end properties are quieter and there is evidence of tighter bank lending requirements.”

Victoria was the strongest performing state for Ray White, with sales more than 30 per cent up in July compared with the same month last year, while New South Wales reported a four per cent increase.

White said the major mining states of Western Australia and Queensland experienced a big drop off in sales.

Source: http://www.property-report.com/