Sydney's housing market is on track to recoup the 15 per cent loss in prices suffered during the 18-month downturn early next year and reach a new record high by March.

Property prices in the harbour city surged 2.7 per cent in November, the highest monthly growth rate since 1988, while Melbourne property values grew by 2.2 per cent over the same period, according to the latest CoreLogic Home Value Index.