Sydney prices 'to rise in 2010'

Sydney house prices are tipped to rise in early 2010, a half-yearly survey of property industry sentiment shows...

The Australian Property Institute (API) survey found Sydney's residential sector will be first to emerge from the downturn, but Melbourne and Brisbane will have to wait until at least the second half of 2010 for things to improve.

The Australian Property Directions Survey quizzed 29 professional corporate members and found commercial, industrial and retail property was at least 12 months away from showing any signs of improvement.

Upswings are forecast across the board in 2011.

API Research Committee chair Phil Bennett said the outlook was "more pessimistic than it was six months ago".

"It's 12 months until we'll start to see some pick-up in the Sydney (residential) market, that's what the survey is showing," Mr Bennett said.

"Sydney sort of led the market, led the clocks down, and it's probably the first one now to pick up."

He said white-collar unemployment and Government policy, particularly an extension of the first home owners grant, would influence the turnaround.

Respondents to the six-monthly survey include property valuers, fund managers, property analysts and property financiers.

API NSW President Robert Hecek said Sydney house prices were almost at the bottom end of the downswing.

"We probably had a very severe time with the market, so I guess it's starting to lift now," he said.

Source: www.theage.com.au