This is an interesting and relevant argument to the prolific talk of the property price bubble in Sydney. Sydney's reputation as an iconic city is growing and if we consider other iconic cities (think Paris, NY, London) the expectation is for a premium level of pricing.
The truth is, its the first port of call for Foreign Investors and a lot of this comes from the soft power (or reputational pull) that Sydney exudes.
Our big cities are only going to get bigger and unless the level of supply can be kept up, or the infrastructure invested in to enable broader urban sprawl, prices will continue to be an issue.
Ray White chief executive Dan White has questioned the voracity of claims that Australian – and particularly Sydney housing prices are in a bubble. “Australia is a big geography. If you took out Sydney, I don't think you'd be saying that at all in terms of bubbles." He also suggested that as an individual market, Sydney is undergoing a transformation in terms of its status and perception globally, which is changing the fundamentals of how its property market will perform into the future. “Is Sydney an international city that will continue to get a premium going forward?’ Is it being rated as an international city and being benchmarked against all great international cities?" he said. “All trends around the world suggest that big international cities are outperforming second, third or fourth cities in their country by a huge margin."