The head of research at national property investment company Propertyology, Simon Pressley, has highlighted Orange as a growth area in a national guide on property investment for 2020.

Mr Pressley said Orange was well ahead of most capital cities in the growth of housing prices and had a strong local economy.

However, he said demand would continue to force up rents and housing prices in 2020.

"With 23 per cent growth in its median house price over the last three years Orange has already been one of Australia's best-performed property markets," he said.

"It is superior to every capital city other than Hobart.

"It was streets ahead of Sydney [2.4 per cent], Wollongong [11.1 per cent], Newcastle [17.6 per cent] and almost every NSW major regional centre."

Mr Pressley said Orange's new doctor training course at Charles Sturt University, the expansion at the Cadia mine and the city's lifestyle would attract workers and residents.

"Propertyology anticipates that people will continue to be attracted to relocating from the big smoke to Orange," he said.

"Buyer confidence is understandably already high in Orange. Several years of a consistently strong local economy is expected to continue to play a role in Orange's housing demand."

Mr Pressley said factors including record-low interest rates, improved credit supply, the first homeowner deposit scheme and the affordability of housing in Orange would increase demand for housing.

"New housing supply has been short of demand in Orange for a few years now. Rental stock is also low so we anticipate that Orange rents will increase during 2020," he said.

Propertyology's Property Market Outlook 2020 has also forecast property prices in Sydney were likely to rebound in 2020 after several years of falling.

However, Mr Pressley said it was expected there would be a rise in the number of people wanting to leave Sydney to live elsewhere.

He said more than 27,000 residents left Sydney last year.

Mr Pressley said while investors had concentrated on Sydney, Melbourne and Brisbane other markets were performing better.

"Orange, Launceston and Burnie did very well over the last three years and I think still have plenty of strong miles left in their legs," he said.