All valid points but they don't consider potential increases in interest from cashed up people in Sydney looking to leverage off recent large capital growth gains. You could argue that this would only be a small % of the market but investors are generally more interested in the lower end of the market and unless vacancies spike which seems unlikely interest in this market will remain at the lower end IMO
Investors make up 50% of new mortgages. Investors are playing a HUGE part in markets across Australia.