News emerged this week that regional NSW property demand has surged in recent months, with the number of property sales in country areas, in total, now equalling the number of sales in the Sydney metropolitan area.

The trend has been monitored by the Housing Industry Association, which monitors house buying activity in cities and regional areas.

The HIA has found that, for the first time, as many people are buying property in country areas as in the major metropolitan areas.

Pat Cutcliffe of LJ Hooker confirmed yesterday that the sluggish Orange market of 2006 has ended, based on early new year trading.

"It [HIA finding] sounds right, because the first three months of this year are the complete opposite of the last three months of last year: we've had a complete resurgence," he said.

"If the market demand continues, I think we are in for an excellent year of property sales and that of course means a good sign for the Orange economy."

Mr Cutcliffe agreed with the HIA suggestion that the high level of capital city prices are forcing buyers elsewhere.

"It's funny you mention that because only today I had a buyer from Sydney looking around for investment houses," he said.

"Certainly Sydney prices must be a factor, but Orange is also seen as a stable growth area: last week, I had a buyer from Leeton (in the Riverina) looking to put their investment property money here as well."

Mr Cutcliffe said he disagreed with one prediction from the HIA: that first homebuyers are the driving force behind the trend.

"First homebuyers are very important anywhere, but I would say it is the homeowner on their second or third home, and rental property investors, who are driving Orange demand at present," he said.