Although Sydney property has slowed recently due to oversupply which some say has been created by the Olympics and the Asian meltdown, there are some pockets with potential for growth.

Petersham may be one of those suburbs. It adjoins Leichardt, Annandale and Stanmore with close proximity to Newtown. With these suburbs somewhat more expensive it only seems reasonable that Petersham will attract those buyers who can't afford the adjoining suburbs or are looking for a bargain.

Look at the results for Maroubra recently. It adjoins Randwick and Coogee however was under capitalised compared with these adjoining suburbs. As a result prices rapidly sprang upward and produced some of the City's best growth. With Petersham's location (3kms from the CBD) and under capitalisation compared with adjoining suburbs, likely increases in capital seem eminent.

If we believe all the press has to say about Sydney's hot spots then we will be three years too late. By the time the statistics are researched by junior staff on behalf of the media the good buys are long gone.