It struck me on a recent trip south that Melburnians appear to be living in some sort of nirvana. Not only is there no 1.30am lockout, no discernable traffic and no State of Origin, but property in Melbourne is vaguely affordable, whether to rent or buy.

As a born and bred Sydneysider, this is astounding. Here, a fibro shack within cooee of a train station will soak up most of your income. There, agents are flogging new CBD apartments for $400 a week.

Chris Johnson, head of the Urban Taskforce which represents property developers, says Sydney's price premium is partly driven by our harbour views, which drive the top end of the market. But Melbourne has also done a much better of job of building sufficient housing for its growing population, particularly in the inner city.

“[Sydney's] slow supply has a big impact on the cost of housing because there's just not enough of it," Johnson says.

New government figures published by the Herald show an additional 2 million people will live in NSW by 2031, and more than 660,000 homes will need to materialise in Sydney itself. These are revised forecasts and could be revised upward again.