This two-bedroom unit at 11/55 Delmar Parade, Dee Why, sold for $665,000. Photo: Supplied

Domain Group 2015 Prediction: Houses: 5-7 per cent Apartments: 5-7 per cent

The Northern Beaches market is set for a much-needed boost over the next few years as construction of the controversial new hospital at Frenchs Forest gets underway, bringing with it extra infrastructure and spin-off medical businesses.

Angus Raine, executive chairman and chief executive of Raine & Horne, says prices in suburbs such as Forestville, Frenchs Forest and Davidson have risen by 10 per cent since preliminary work started on the hospital last year. "With lower interest rates, we see no reason why this level of growth won't continue in 2015," Raine says.

The 488-bed Northern Beaches Hospital is scheduled to open in 2018.

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Raine predicts Forestville, Frenchs Forest, Davidson and nearby Killarney Heights could produce price growth of 10 per cent or more in 2015.

"This is especially the case with the state government confirming it is going ahead with a road underpass, a road widening on Warringah Road and other upgrades in support of the hospital," Raine says.

Sam Pfafflin from Raine & Horne Forestville/Frenchs Forest says properties near the hospital will be highly sought-after by specialists, GPs and other medical businesses.

The northern beaches was one of the underperformers of the Sydney property market last year, says Dr Andrew Wilson, the chief economist for the Domain Group. "Even though [the Northern Beaches] did record a quite healthy prices growth it wasn't at the same level as the budget areas or the mid-price range areas," says Wilson.

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Northern beaches: Hospital build stimulates growth