I'm willing to bet nobody here can reliably predict, with reference to hard facts or data, where the Sydney property market will be in two years.
With rates in AU being historically low, and people being able to borrow more, demand for real estate can only be increasing. And since the supply in Sydney is lower than demand, it will be pushing the prices up. For how long? Until the rates start going up I guess. With the current inflation being at around 2.2% (healthy inflation is from 2% to 3%) I don?t see RBA increasing the rates just as yet. Also, unemployment is still growing, and Australian dollar is still strong. In my opinion, the economy is too fragile for RBA to start increasing the rates now, more likely in a year or so. And until the interest rates start going up, the property prices will be increasing.