Reading and then trying in vain to digest that I have absolutely no idea whatsoever what this is all supposed to mean for the market? It's a Sydney booom...but it's easing. Vendors are supremely confident...but there are also now loads of buyers coming into the market. A plateau is some way off...however, it's coming by Christmas, and when it does come growth will actually continue (not sure how that works), but in a sustainable manner, of course.
In fact over 20 years the two sectors have matched each other, although the financials tend to pay stronger dividends. Regardless, the owner of an index fund will own all significant sectors of the market and need not know or even care about the answer, which is a rather pleasant position to be in!
When they were built in 1994 these 2 bed/2 bath apartments were initially sold for just under $300,000. Is $1.5 million a crazy price? Indeed! Unsustainable? Probably! That is, after all, an 8.5 percent compounding capital growth for 20 straight years.
And if 2008 taught us anything that was what a complete waste of time all those market predictions were - prices are up by around 50 percent since then. People often think they can forecast the market with great accuracy, but generally, they can't. In property, just as in shares, timing the market is much harder to do than folks tend to think.
But even with prices are at now around their four year lows, but I'd be willing to take a bet that long term buy-and-hold investors will still do pretty well for themselves regardless of how the market performs over the short term since they understand the fundamentals thoroughly enough to recognise the buying opportunities.