Michael Pascoe, a BusinessDay contributing editor, points out that jobs, more than investors, drive the Sydney housing boom.
Michael Pascoe explains that Sydney's been our clear FIFO capital ever since the resources investment boom peaked- the engineers who used to fly north and west from Brisbane have been flying south and now it's tradespeople and consultants of every type and description.
People who flock into Sydney are not only workers but also travelers. Some are international travelers and others are locals who holiday domestically.
Federal government statistics show Sydney's regular public transport (RPT) passenger movements grew by 3.4 per cent to 26.96 million in the 12 months to the end of January.
On the other hand, of the top 10 Australian airports, the WA capital was the only one to record a fall in domestic passengers, down 3.2 per cent.
Michael Pascoe notes the growth is not evenly spread. The regions that are facing weaker investment are returning to earth, while Sydney takes off on a virtuous cycle of infrastructure investment promoting growth that provides the wealth and the jobs to fund infrastructure investment.
And he says that it all means the pressures on Sydney housing aren't going away any decade soon.
