Sydney's housing market achieved a new peak for buyer demand in the beginning of the month, according to a report from Domain.

Over the four weeks to 6 September, demand for houses increased by 9.5%, the highest gain recorded since the post-lockdown rebound in May. Demand for units also jumped, up by 4.5% during the same period.

"By far, houses are the most in-demand property type, with 89% more 'likely to buy' actions than units. While both property types have seen a significant uplift in buy intent behaviour from property hunters, with the indicator reaching new heights, the pace of growth for houses has been greater relative to units," said Nicola Powell, senior research analyst at Domain.

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Powell said the COVID-19 outbreak has resulted in some changes in the preferences of Australians when it comes to dwellings. For instance, the need to commute to the city has become less crucial to many home buyers as they adopt the work-from-home trend.

Some of the areas that are getting a lot of demand are Rural-Wisemans Ferry, Hawkesbury, Hornsby, Pennant Hills, Sutherland-Menai-Heathcote, Warringah, and Wollondilly.

"Interestingly, the areas in highest demand are dominated by leafy, outer-suburban locations, those that offer larger block sizes, bigger homes and better affordability compared to inner suburbia," Powell said.