Sydney's 2021 property hotspots predicted

Sydney's property market is expected to keep getting stronger in 2021, despite the battering of the COVID-19 pandemic.

And the city's north is one of the hotspots, with people looking toward a seachange while working from home.

A four-bedroom home in Fairlight recently sold for $3.8 million, well above the asking price of $3.5 million.

"We've seen some properties sell for, say, 15 per cent higher than, say, they would in April, and it doesn't seem to be slowing down," real estate agent John Cunningham told 9News.

The citywide property market is tipped to see prices jump between five and seven per cent in the coming year.

Mona Vale, Bayview and Avalon are predicted hotspots in the north, along with St Ives, Pymble and Hornsby on the upper north shore.

But though prices are rising, stock levels remain in decline as they have been for much of the past decade.

"Over 10 years, we've seen stock levels decrease up to 30 per cent and demand increase by a similar (percentage) so that has a multiplier effect," Mr Cunningham said.

"We're seeing people staying in their homes for up to 15-20 years, where in the past it was 10-15 years."

Away from the Sydney coast, the Hills district is also proving popular, with Baulkham Hills, Castle Hill and West Pennant Hills expecting above-average price growth in 2021.

Buyers priced out of the north shore reasons are advised to look at the southern suburbs of Bexley, Kingsgrove and Engadine for value-for-money opportunities.