Ergo, higher lending rates will not be the dampener.
Part 2 - Supply and underlying demand
In the year to September 2003, nearly 33,000 persons fled New South Wales for pastures new.
As you can see from my chart below, the mirror image movement in the line denoting Queensland in 2003 shows you that they were heading for a cheaper lifestyle in the Sunshine State.
However, interstate migration is not going to be a factor to slow the Sydney market in 2015.
Part 3 - The pipeline
Rolling annual lending to owner-occupiers in New South Wales has leapt to its highest ever level at more than $70 billion...and rising fast.