Admittedly fundamentals are clouding what has been a stellar run in Sydney town. The domestic economy looks patchy at best, China’s economy is slowing and our political landscape continues to inhibit real change. On the positive front a weakening Australian Dollar might fire up the manufacturing sector and off-set the weakness in the mining sector. Chinese demand for Sydney property will continue to be the wild card and there is no sign of a slowdown from these buyers.
Now don’t get me wrong. We will see a correction in Sydney property prices. I don’t know when or from what lofty level. I do know there are three certainties in life: Death, Taxes and Sydney house prices don’t collapse when mortgage rates are around 4%!