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Agree knightm - this is a good combo for longer term success. Sydney has: 1) Low and falling rental yields. 2) More supply of dwellings being built than demand per year. Of course, lots to soak up for years, but nonetheless, the fact we're building more will come online and have an effect...

That's pretty true and good advice in general. Although in Sydney, the supply is coming all over major geographic centres and not all located in the CBD ring. But the same principles for good purchases do very much hold. Impact on rents is likely to be more pertinent in the short run...

Supply of stock > average demand levels - well and truly now. Will take a while to soak up decades of undersupply, but this should put a lid on rental growth. IMO, I cant see how using the 5%+ rental growth figures used in lots of calculators is at all prudent.

I get a similar feeling about Liverpool. Obviously a lot further out, but the number of new apartment buildings going up near the Liverpool hub is nuts. In the place where my folks stay (which is new), there are at least 5-6 multi storey developments within 100m. Then theres a couple towers...