Inner city Sydney real estate in high demand

There will be no relief for struggling Sydney househunters, but a recent bank survey says sellers will be in the driver’s seat in 2014.

This five-bedroom house at 4 Constitution Rd, Dulwich Hill is on the market for more than $1.5 million.

The only way is up for Australian capital city property prices according to a national bank survey out today.

National Australia Bank’s Quarterly Residential Property Survey revealed Sydney is expected to be among the best performers in the country for house price growth in the year to come.

Out today, the December survey showed the top suburbs in NSW which are tipped to outperform this year. Blacktown, Darlinghurst, Dulwich Hill, Liverpool, Marrickville, Penrith, Potts Point, Rosebery, Surry Hills and Sydney’s CBD are all pegged to increase in 2014.

NAB chief group economist, Alan Oster said it was “promising” that property professionals also indicated the housing market would lift further for properties in the lower and conversely the top-end price brackets.

“Owner-occupiers continue to dominate the established housing market, driven by upgraders, and we expect this trend to continue over the next two years,” Mr Oster said.

“NAB’s own forecast sees average capital city house prices rising 6 per cent in year to end-2014 and 5 per cent in the year to end-2015, which is more bullish than the average survey forecast,” he said.

This family-friendly property at 42 Archer St, Blacktown is on the market for about $500,000.

Mr Oster added that the growth would be supported by the low interest-rate environment, improved affordability, population growth, longstanding supply issues and foreign buying activity.

The survey, of Australian property professionals, also revealed that in NSW, demand is expected to be strongest for inner city property over the next 12 months.

Nationally, the survey revealed an increase in demand for all types of property during the December quarter, with inner city the best location in all states.