Sydney property prices are 'slow and steady'

Growth in Sydney's property prices is set to continue at a steady pace throughout the rest of 2011, one industry expert has asserted.

Louis Christopher, managing director of SQM Research, observed that the market is "not racing of falling" but instead is "moving at a considerable pace".

Speaking to Smart Company, he commented that while other property experts have tipped Sydney property prices to shoot up during the year – with some predicting increases of up to ten per cent – this may be an "optimistic" outcome.

He highlighted that this is not likely to happen unless interest rates are cut within the next few months, although Sydney's auctions market took an "uncharacteristically high result" in this past weekend's auctions market with clearance rates topping 60 per cent.

A Sydney property investment could be a wise option, as rental vacancies continue to tighten across the NSW capital.

Figures compiled earlier this month by the Real Estate Institute of New South Wales (REINSW) suggested that demand for rental properties is likely to increase over the coming year.

The Sydney rental vacancy rate increased by 0.1 per cent in January to 1.5 per cent, according to REINSW figures, with the bulk of increases recorded in the middle and inner suburbs.