Sydney's ferocious property market is showing no signs of slowing down with cutthroat competition even for rentals.

Pictures emerged of more than 200 people lining up to inspect a modest $860-a-week terrace in the city's inner west in scorching 35C heat on Saturday.

The sought-after home in Stanmore, about seven minutes walk from a train station, saw house-hunters young and old queuing on both sides of the leafy suburban street.

Worth about $1.6 million, it included three bedrooms with built-in wardrobes, two bathrooms, one with a spa bath, a double carport, and a balcony coming off the main bedroom.

The first floor had a black granite gas kitchen with breakfast bar next to an open plan lounge and dining area plus an internal laundry.

There is rear access to the courtyard carport with a garden down the side and an automatic roller door for security.

Other feature included polished timber floorboards, air conditioning on both levels, gas bayonets, high ceilings.

Analysts expected Sydney's property boom to continue in 2017 with a shortage of houses and slowing rates of apartment construction.

Overall house price rates were tipped to rise about five percent over the year, but trendy suburbs like Stanmore were likely to increase even more.

More houses would be bought up by investors, making it more difficult for first home buyers to get into the market, forcing them to join lines like this one.

A record number of houses were sold in the last week of December, with the inner west leading the way with 82.6 percent of auctions closing.

This article was originally posted here