Is Sydney Australia’s next property boomtown?

According to the Investors Club the average house price of a Sydney home could rise by $100,000 in the next two years. That could make buying a home a great investment with mortgage interest rates as they are now.
They claim that a shortage of homes and a growth in population will cause Sydney house prices to rise.
The last spike in Sydney property prices occurred between 2002 and 2004 when the median house price surged by over $150,000 to $524,000 because of under-supply.
The spike in property prices according to the Invest Club was caused by an under-supply of houses relative to population growth which resulted in a major blowout in prices over this two year period.
But is this true, and was there other factors at play?
I believe that the other factors, including the flow on from the first home owners grant, and the “last echo effect” of the baby boomers, coupled with the improved longevity of Australians was the real causes of the 2002. to 2003 rises, which mirrored the 1972 to 1975 rises of home prices, which I believe was driven by the baby boomers coming to an age when they wanted to start a family.
Maybe it is Sydney’s turn for a price rise. But let’s see the evidence of an upturn, before we start rushing out to buy an investment property.

About: Rick Adlam: Rick Adlam has been helping clients with home loan finance since 1985 when he was home consultant with AV Jennings. Rick started Equity Home Loans in 1996 to help homeowners become property investors. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers. Website: http://www.mrmortgage.com.au