"competition for low supply of new jobs will keep wages growth low if not negative"
While the Oz Unemployment rate seems high, NSW and VIC are below 5% and have been for a long time. Most business owners I speak to have the opposite problem, finding quality employees is still difficult.
Construction starts are falling dramatically which will limit forward supply.
Personally I am exercising caution but it is more to do with my forecasts for regional and global issues than NSW. We are ticking along just nicely over here.