DESPITE the luscious tree-lined hills, panoramic views, majestic open spaces and collection of well-kept conservation areas, south east London lacks the charm of the inner city, but soon commuters will be flocking to the suburbs to bag themselves a home.

Known for dissuading homebuyers because of a relatively poor transport system into the city centre, areas on the East London line of the London Underground route are being tipped as hotspots to look out for as house prices are predicted to soar come 2010.

Areas including New Cross, Brockley, Honour Oak, Forest Hill, Syndenham, Crystal Palace, Penge, Anerley, South Norwood, and West Croydon are all expected to benefit from the £1bn southwards extension of the East London line.

It will be just as easy to commute into the city as it is from Clapham, Wimbledon or Richmond.

Transport for London (TfL) is funding the giant overhaul of the tube line which will see the East London line span across the south east with up to eight trains running north and south every hour, eventually connecting with the Shoreditch and the Jubilee line in the city centre.

The East London line, which will become part of the new East London Link network, is due to be completed in 2010, giving homebuyers a couple of years to bag a bargain and watch their fortunes grow.

Current owners and investors of homes on the existing East London line should expect to see a hike in property values once the line reopens.

People looking to buy into up and coming areas of south east London should not overlook these predominantly residential areas which will soon be transformed.

Buying a property in an area before the arrival of the revamped tube line is sure to be a profitable investment.

Research into the correlation between house prices and proximity of metropolitan railway stations found properties within walking distance attract a significant price premium.

Dr Steve Gibbons, a lecturer in economic geography at the London School of Economics, said: "Prices increase by about nine percentage points for each kilometre towards a London Underground station or Docklands Light Railway station.

New Cross, the first stop on the new tube map, exudes arts and drama with the centre of the town dominated by the performing arts college Goldsmiths. Nearby Telegraph Hill is one of many conservation areas in South East London. The hilly neighbourhood offers an abundance of two and three-storey Victorian homes starting at about £425,000 for a three-bed family house and £675,000 for a five bed. First-time buyers can purchase a two-bed ex-council flat for around £170,000 in New Cross.

The first new stop travelling on the south Line is Brockley regarded as on of South London's hidden secrets. Saturated with stucco house on tree-lined roads protected from demolition or redevelopment as it a conservation area. The area is great for flat hunters and the average three-bedroom property can be snapped up for £365,000.

With terraces 1930s houses for £360,000 on the east side and large detached Gothic properties selling for more than £1m on the west side, Honour Oak has something for everyone. Currently being converted into chic flats, the area is attracting young, well-off professionals in their thirties. Three-bedroom flats in a Grade II-listed neo-gothic church development will set you back around £495,000. An average two-bedroom flat in the area will cost around the £250,000 mark.

Berkeley Homes is building the Forest Hill Central development of 46 low-maintenance flats a minute's walk from the station to appeal to commuters. Due for completion in 2009, one-bedroom flats are selling for "250,000 and £315,000 for a two-bed. The average price for a three-bedroom house in the area is £335,000. With an array of boutiques and fine eateries opening up in the area, as well as the Horniman Museum, Forest Hill is most definitely one to watch.

Crystal Palace is home to Selhurst Park Football Ground and a number of green spaces, hills and woodland. Popular among those without a great desire to travel into the city centre, Crystal Palace will become a more fashionable district similar to Tooting and Balham. Three-bedroom properties are selling for an average of £360,000.

The Victorian-era settlement of South Norwood will be given a boost by the Norwood Junction tube line and with a healthy housing stock and clean up, the area is tipped to become a desirable South East London location. With reasonable property prices of £187,000 for a two-bedroom flat this area will be profitable in the future.

The line ends in West Croydon which is going to be transformed over the next 15 years because of the new Tube link and £5bn Croydon Vision 2020 development. Prices for two-bedroom two-bathroom flats in the 20-storey building Lylo are to be confirmed next month. Croydon is one of the most affordable areas in South London with three-bed houses in West Croydon selling for around £280,000.

South East London is the capital's last frontier and the introduction of the extended tube line should transform the region into fashionista suburbs which compliment the exciting and magical Capital popular among commuters and families looking for some greener areas outside the city centre.