Is Sydney in the grip of a housing bubble?

Sydney’s property market recently caught the attention of BBC News who wrote: “Is the Sydney market stable? Not according to the tellingly named UBS Housing Bubble Index. Released in September, it named Sydney the fourth most likely city in the world to face a housing correction. The most bubbly city on the list, Vancouver, has already seen a significant albeit tax-driven correction of 18%-20%. Sydney has the second most unaffordable property market in the world after Hong Kong in the Demographia International Housing Affordability Survey, with the price of a typical home now costing 12.2 times the annual pre-tax income of an ordinary household. Lindsay David, co-founder of LF Economics and author of Australia: Boom to Bust said: "The cracks are going to start to appear next year, once all these new dwellings under construction in Sydney, Melbourne and Brisbane come online and there won't be anyone to rent them. It's going to get messy," he says, predicting a bloodbath by 2017.” Full story here: (VIEW LINK)