Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Invest in Sydney/Brisbane property markets, or for media/public speaking requests, email pete@allenwargent.com

Tuesday, 31 January 2012

What happened to Aussie property values in 2011?

Very broadly speaking, affordability improved, which I think most people will agree is a welcome development.
Average household incomes grew by a surprisingly robust 7% in the year to September 2011, while dwelling values fell steadily throughout the year, capital city values dropping by an average 3.5% over the year.
On a city by city basis, values fell by:
Sydney  -0.5%
Melbourne  -5.6%
Perth  -3.9%
Brisbane  -7.0%
Adelaide -5.0%
Darwin -3.7%
Canberra -1.6%
With interest rates being cut twice in November and December 2011 (and fixed mortgage rates now available at a very cheap 5.9%), this has taken the edge off the affordability issue for the time being at least.
RP Data reported that disposable income has outgrown property price growth by 15% since 2003 - and the figure is around double that in Sydney where values hit astronomic levels in the first quarter of 2004.
Dwelling values in the last month of the year were flat, which may indicate that a period of stability is on the way, the interest rate cuts having brought some relief for now.
***
Went on the restored Strahan-Queenstown railway yesterday, which was excellent, and did a cruise today down the World Heritage Listed Gordon River today.
Apparently, it has the cleanest air (and definitely some of the coldest) in the world down here, for which we should be grateful to the hordes of protesters of 1981 who prevented the giant HEP station being built on what is now a protected site.
Another few days in Tasmania, then will be heading back to warmer climes in Melbourne, if that isn’t some kind of contradiction…