Latest NewsSydney Property Boom Tipped for 2010: a Very Strong Tip to Put Your House On....Tuesday, 13 December 2016

What a difference a year makes....

Last February many property experts were prophets of doom in the face of the world financial crisis. But the Sun-Herald Property Guide paints a rosy picture for a large number of home owners.

Eighty two suburbs are tipped to see median price growth of 10 per cent or more for houses over the next year, while 53 suburbs will see 10 per cent growth or more in apartment values.

The Fairfax-owned Australian Property Monitors, which gives price data and predictions for more than 600 Sydney suburbs in today's guide, expects some of the year's hottest performers for houses to be beachside: Bondi Beach, South Coogee, Tamarama and Curl Curl with more than 12 per cent median price growth likely.

The star apartment suburbs include Darling Point, Point Piper, Cammeray, Lane Cove, McMahons Point and Avalon, which are also tipped to experience median price growth of more than 12 per cent.

APM economist Matthew Bell said rising interest rates would take their toll on the more affordable suburbs in Sydney by the end of the year.

"Once we reach 7.5 per cent to 8 per cent, rates will start altering people's buying decisions," he said.

Yet today the toughest challenge facing buyers continued to be finding an affordable home that appealed to them, a situation made worse by a shortage of new listings in many areas.

"Prices are on the way up," said downsizer Leslie Reily, who has been scouring Glebe, Camperdown, Erskineville and Newtown for a three-bedroom house or apartment priced up to $900,000 since April.

"I've come close to buying a couple of times but just missed out. It's a difficult one - things are changing really quickly and with interest rates going up, it will be interesting to see if prices stabilise." She's not holding her breath.

"In the end, it comes down to when you need a house," she said.

Upgraders are having similar problems after prices unexpectedly increased in the second half of last year as confidence improved.

Olympian Jane Flemming and husband Ian Purchas - parents of twins James and Samuel - forked out $2500 in legal and inspection expenses in preparation to bid at a recent auction only to have the house sell for $800,000 more than the agent quoted.

"Prices are moving at the mid to upper end of the market, I think driven by [consumer] confidence," Flemming said.

"If we found something tomorrow we would make an offer and move in next week. All our ducks are in a line now - we just need to find the right property."

Researcher RP Data reported the volume of first-timers last year was the highest on record - a 55 per cent increase on the previous year.

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