How Sydney determines our national housing policy

While hundreds of micro-markets exist within Australia's property market, irrational activity in Sydney will continue to set the agenda when it comes to housing policy.

As the latest housing boom has developed, it’s become increasing obvious that it’s concentrated purely in Sydney and Melbourne. At times, even including Melbourne has been questionable given the sheer dominance of Sydney price gains and its influence on national metrics.

The house price-to-income ratio in Australia is approaching its peak but clearly there are a number of different underlying trends reflecting the strong activity in Sydney and the more subdued activity elsewhere.

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