hello,
Hey there.
Dont know too much about the NZ side, but definitely on Sydney. Hostels do fill up quick over the xmas and nye period and ofter they will only offer a 3 night minimum stay. It would probably be best to book at the latest in August. Sydney accommodation is a little more expensive than anywhere else in Aus but you can eat and drink very cheap. Keep in mind that there are thousands of hostels between the city and the most famous Bondi Beach, so it really is your decision how close you want to be to the surf. My advice would be to stay in Paddington or Darlinghurst. Very vibrant night life and you can catch a bus anywhere. But when booking a hostel, especially if you're not used to the Australian heat, to try and find one with aircon. Otherwise you could be very uncomfortable during the night.
There is also only one party to be at during NYE and that's Shore Thing at Bondi Beach. Id recommend getting tickets early for this as many Syd festivals sell out in seconds.
Hope this gave you a start if you need any more advice about syd, just ask.
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