The preceding residential construction boom in Sydney finally peaked in 2004. This construction cycle gradually began to ramp up from a nadir for dwelling starts in Q1 2012, with apartment commencements rising virtually ever since.
The specifics of those locations and property types do change a bit over time, but the principle of where pressures on land values are greatest are fairly constant. While affordability will always be a constraint to some extent, as the population grows there will be a greater demand for the geographically limited supply of desirable land close to the city.
Experiences globally have shown that once a city reaches a population of around 5 million, logistical and liveability challenges become just that much greater.
While the incentive of more free trips is no doubt a factor, alone it clearly can't explain an extra 72 million trips on public transport!
Studies by Grattan and others have shown that outer suburban areas struggle with access to employment within a 45 minute drive, and as such public transport hubs are growing in importance, especially rail links.
That's no surprise, as it's where desirable land is at its most scarce, and demand is highest.
Over the past year Pyrmont in Sydney has delivered another ripping 22 per cent capital growth. Surry Hills is another suburb I expect to see continuing to benefit from a combination of Chinese investment and the CBD & SE light rail project.
Prices in the eastern suburbs such as Bondi have delivered stunning returns, although Bondi Road has morphed into something akin to a car park over the last year or three, so I expect strong price pressures will steadily shift shift closer to the Junction at BJ, and later towards towards Randwick, Coogee and Maroubra as the light rail comes online.
Public transport links, particularly train and light rail links, are gradually morphing from a 'nice to have' to becoming an essential.