It's been a few weeks since my last blog post... so I thought I'd make up for lost time by sharing with you my top 10 hot suburbs for the year ahead. These are the areas that I think are either great buying opportunities or are set to fly in 2010.

Overall, I expect the market in most parts of Australia to be up by 8%-10% by Christmas. There are a few simple factors that will drive this:

1. The economy is coming out of a chilly winter and the mood is positive. Real estate values move with the sentiment as much as they do with things like interest rates
2. There's been a severe shortage of new building developments and this won’t change for several years – so the under-building situation is here for at least two more years
3. Australia is the poster child for lifestyle and economy, and interest from overseas buyers is increasing – both expat and foreign investors
4. More and more people are seeking to live in the same popular precincts – the inner circle of major CBDs and close to beaches and waterways – and there just ain’t any more real estate in those places!

So if you want to invest in real estate in and around Sydney in the near future, here are my top suburb suggestions for both houses and apartments.

Houses:

• Balmain – one of Sydney’s oldest and most popular harbour side inner city suburbs.
• Brighton-le-Sands – set for major growth. Situated on Botany Bay and  only 15 min to CBD.
• Curl Curl – offers the lifestyle of Bondi Beach at about 30% lower price.
• Erskineville – adjoins popular Newtown. Only 9 mins to CBD and home to one of the best cafés in Sydney.
• Freshwater – used to be Harbord. Still just as beautiful and somewhat undiscovered.
• Haberfield – the Woollahra of the inner west. One of the truly great “under the radar” suburbs of Sydney.
• Hunters Hill – World class peninsula suburb that was over sold during the GFC. Tremendous value today.
• Marrickville – feels like Paddington in the 70s. Buy here and double your money in the next 6 years.
• Northbridge – Like Hunters Hill, this suburb was discounted during the GFC and set for strong price growth in the next 12 months.
• North Parramatta – Bordering one of Sydney’s fastest growing commercial precincts. Represents great affordable housing.

Apartments:

• Balmain East – modern living with traditional Balmain charm.
• Camperdown – about to boom with the new brewery development ahead. Borders the CBD.
• Coogee – still one of the best beachside apartment suburbs on the east coast of Australia.
• Glebe – the unforgotten jewel in Sydney’s inner city.
• Lane Cove – not just some of Sydney’s finest houses, but best value apartments as well.
• Leichhardt – the Surry Hills of the inner west with the best spaghetti in Sydney!
• Manly – A short ferry ride to the city. Manly provides Sydneysiders one of the best lifestyles available.
• Neutral Bay – walk to the city. On the edge of the harbour. Need I say more?
• Pyrmont – terrific value for money in the closest suburb to the city.
• Ramsgate – if you can’t afford the eastern suburbs or inner west, check out this bayside area.