Regular readers will be aware that as someone active in the Sydney property market I've seen this trend building over a long, long period of time now.
Buyers are consistently being drawn to the same established stock located in favoured suburbs close to the city.
Note how housing finance for investors in NSW is up by some 37% in only 12 months:
BIS Shrapnel predict Sydney prices will increase by 19% over the next 3 years, which is somewhat less bullish than SQM's prediction of a 15-20% surge in 2014.
Sydney dwelling prices are already up by around 12% in 2013 alone according to RP Data.
The Aussie dollar has zipped back to a 4 month high at 95.3 cents.
Meanwhile, the Reserve Bank retains its easing bias in its Minutes of Monetary Policy Meeting. There may yet be a further interest cut, should it be deemed necessary.
"Members agreed that the Bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them."
However, futures markets are pricing in no further rate cuts in this cycle, which will see borrowers rushing to fix interest rates at remarkably attractive levels - at well under 5% in many cases.