SYD: Don't believe crazy boom theory

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WHAT'S DRIVING ECONOMY?

• Low interest rates 
• Rising confidence
• A surge in investor activity are the current drivers of the Sydney housing market together with a solid performance by the local economy - is about as close to a boom next year

WHAT'S SLOWING ECONOMY?

• Sydney’s unemployment rate is now rising towards 6 per cent and predicted to continue to rise.
• Wages and profit growth remain subdued in a low inflation economy with a stagnant stockmarket continuing to constrain growth in the prestige market.
• The prospect of sharply falling rental yields will also prove a disincentive for new investors.
• Prices growth in Sydney is likely to peak over the next six months, with continued solid growth dependent on a sustained revival in the economy and unemployment falling to or below 5 per cent. 

"There are a lot of reasons that prices will be kept in check" says Australian Property Monitor’s Andrew Wilson.

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