Sydney house prices are still on the rise after an unprecedented 12 months of growth.

Homeowners are happy to see values growing, while many homebuyers continue to wonder if it’s a good time to buy amid an environment of high interest rates and cost of living challenges.

The Sunday Telegraph has picked the brains of property experts, asking where to buy across Sydney in 2024.

There were some surprise picks not only in growth areas but hidden-gem suburbs that don’t often attract the same attention as their more popular neighbours, while offering the same lifestyle at a friendlier price.

Ray White chief economist Nerida Conisbee.

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Ray White chief economist Nerida Conisbee said her main pick for the new year was looking at established homes close to “house and land” areas which are common across the Hills District and south western Sydney.

“It is now a lot more expensive to build a new home so buying a home a couple of years old in these areas is a smart purchase,” she said.

She said construction costs had risen so much – 27 per cent nationally – that in many places, replacement costs were much more expensive than established homes are currently selling for.

Ms Conisbee recommends buying established homes near house and land areas. Picture: Toby Zerna

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LJ Hooker’s head of research Mathew Tiller.

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LJ Hooker Group’s head of research Mathew Tiller said more listings will create more choice for buyers in early 2024.

“Likely hotspots for 2024 will be suburbs where values have steadied or fallen during the past year but will be attractive to buyers because of affordability,” Mr Tiller said.

“Also, suburbs that have a median price that is better for the budget compared to neighbouring

suburbs should see a solid demand.”

He said Sydney hotspots included Dee Why where apartment prices fell 8.4 per cent during the past year.

“Glenmore Park is offering good value for families with its median house price falling 2.4 per cent to $1 million; while Raby in Sydney’s southwest saw its median drop 1.8 per cent to $865,000,” he said.

A four bedroom home in Glenmore Park sold for $1.065m in December 2023.

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Buyers Agent and author Lloyd Edge said a good investment relied on getting the right property at the right price.

He highlighted Coogee as a 2024 hotspot, along with Kingsford and Kensington.

“Coogee is a gentrified coastal suburb in Sydney’s South-East, on the cusp of significant growth thanks to increasing infrastructure projects scheduled for the near future,” he said.

“The $2.2 billion South-East Light Rail connecting the area to Circular Quay is expected to further elevate its property demand and drive up prices.

Aus Property Professionals director Lloyd Edge

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Mr Edge highlights the beachside suburb of Coogee as a hotspot for 2024. Picture: Bianca De Marchi

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“Kingsford is a residential suburb situated just south of the University of New South Wales, and a stone’s throw away from Coogee Beach. It will also benefit from the South-East light rail project, providing a direct link to the CBD.

“Kensington, located in the City Of Randwick, is known for landmarks like the University of New South Wales and the National Institute of Dramatic Arts (NIDA). It’s set to gain from the southeast light rail project as well.”

Laing and Simmons CEO Leanne Pilkington.

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View of Metro West construction in Five Dock. Picture: Max Mason-Hubers

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Laing and Simmons chief executive officer Leanne Pilkington said there was a trend towards investors selling out of Sydney and people offloading second homes.

“As mortgages go up, it’s the second home that continues to go,” she said.

“These trends are creating potential for first homebuyers if they can get their finances in order.”

Mrs Pilkington said the main factor to consider when investing was infrastructure and how much growth is occurring in a location.

“Sydney has the Metro transport program going out further,” she said.

“It will run from Tallawong all the way to the city with places like Five Dock having a station opening up. There’s a lot of moving parts across Sydney and investors need to look at the yield and vacancy rate.”

She said for people moving into a home, it was important to research an area and price changes over the past year.

“However when buying a home, you need to buy what is going to meet the needs of your family in a location that’s important for you,” she said.