Sydney residential property prices on way up

SYDNEY house values are on the way up and will outperform the other two east coast capitals for at least another year, a new survey finds.

SYDNEY house values are on the way up and will outperform the other two east coast capitals for at least another year before a broader recovery sets in, a new survey finds.

The Australian Property Institute's (API) property directions survey found that Sydney residential property is seen as already on an upswing, while Brisbane is at the bottom of the cycle and Melbourne still has further to fall.

"In one year's time, residential property is seen as having commenced the upswing in Sydney and Brisbane, with Melbourne seen as reaching the bottom of the cycle,'' the API said.

"In two years' time, respondents see residential property moving further along the upswing with Melbourne lagging behind Sydney and Brisbane.''

The survey canvassed the expectations of property analysts, valuers and other industry professionals.

While a recovery in the residential sector is in its early stages, the experts surveyed said commercial property prices were already rising in Sydney and Brisbane, while industrial values were on the upswing in all three east coast capitals.

The strongest price growth is expected for Brisbane, with industrial property performance in the Queensland capital forecast to outpace the two southern centres by 2014.

Retail property remained in the doldrums, with expectations centred on the sector hitting the bottom in 2013 and beginning a mild recovery in 2014, the survey found.