Weaker foreign demand is about to hit Sydney's apartment market

Housing price growth of between 4 and 6 percent is expected for 2017 for both detached houses and apartments supported by strong population growth and limited signs of oversupply according to Paul Bloxham, HSBC chief economist.

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He said apartment prices are expected to track at a slower pace than detached houses.

"In the detached house market there is only modest growth in new supply expected," he said.

"Overall housing price growth should cool somewhat in response to continued tight prudential settings, particularly in the apartment market.

"Weaker foreign demand, due to a lower RMB, is likely to weigh on the Sydney apartment market."