• The slowing market is primarily because of restricted bank lending practices.

• Sydney’s residential market is growing, with consumer confidence increasing, and unemployment falling to around 4.5%.  Wages are expected to grow.

• The Sydney residential construction industry has been constrained by infrastructure levies from government – around $85K per new block of land (compared to just $15K in Victoria).

• There is an increasing level of demand for units in the city.

• Pressure for urban renewal which is restricted by community [NIMBY's] and Green groups.

• Currently the prestige property sector is extremely quiet and in fact a buyer’s market  (there are fewer buyers and significant discounts off asking prices).

• The prestige property sector is expected to improve once the Australian stockmarket gets above 5000.

• Regional centres have softened with downward price movements. Sydney will influence these regional markets.

• There is an underlying improvement in Sydney’s ‘fundamentals’ occurring right now which most people are not aware of.

• Across the country there is a ‘hangover after the party’ as a result of unprecedented first home buyer incentives during GFC.  In effect, future demand was brought forward and we are now in an ‘adjustment period’.

• This is especially evident in Sydney, however as Sydney’s population increases by around 74,000 people each year – it won’t take long to recover.

• Working hours were shed, rather than a shedding of jobs during GFC – hours now increasing to pre GFC conditions and there is growth in full time jobs.

• 70% of Australians strive to own their own home. Combined with full recourse loans and continued demand for housing, prices will remain stable and ultimately will grow.

• He sees inner city Sydney as a strong prospect for redevelopment and capital growth. There is a shift for families moving to apartment living to enjoy the amenities offered in the city.

Dr Andrew Wilson, the Senior Economist at Australian Property Monitors.