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10. Sydney, Aust. - $1,440 per sq ft

Australia’s most populous city saw a decline of -11.9 percent in prime real estate prices over the course of 2008, but was somewhat able to buck the dramatic declines experienced by other markets in the final quarter of the year, with prices falling a relatively modest -6.4 percent. Sydney has the world’s 10th priciest prime real estate, at $1,440 per square foot.

Photo: AP