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.

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Monday, 30 September 2013

APM Sydney auction market wrap

As I've noted on this blog for a long time, Sydney's inner west remains a remarkably strong property market sector with clearance rates still hitting at above 90% from the highest number of listings. A definite risk of over-paying in that sector now and better value is to be found elsewhere. From APM's auction market report here:

"Sydney’s weekend auction market has concluded its strongest ever September performance with a clearance rate at the weekend of 81.5 percent. That result makes it 11 weekends out of the last 12 that Sydney has recorded a weekend auction clearance rate above 80 percent.

Sydney’s weekend auction clearance rate has averaged  a phenomenal 84.8 percent over September which is the highest result ever recorded for that month.
Sydney’s record September auction results have been achieved despite a surge in listings over the month. Auction stock numbers have continued to increase over recent months as sellers have become more confident and enthusiastic about the strength of buyer activity in the local market.
Over the past 4 weeks 2003 properties have been listed to go under the hammer in Sydney which is  419 more or 26.5 percent higher than were listed over the same four weeks a year ago.
Sydney’s inner west continues to produce  exceptional clearance rates with this weekend recording 91 percent from 85 reported auctions. Next best was the northern beaches with a clearance rate of 83 percent followed by the city and east and Canterbury Bankstown each with 79 percent clearance rates.
Sydney’s weekend auction market continued at record-breaking pace over September with strong houses prices growth certain to emerge as a consequence.
This week the Reserve Bank will meet for its usual monthly meeting to determine the future direction of interest rates. The bank will likely leave rates on hold despite signs of a weakening economy. The lowest rates in 60 years will regardless continue to drive a strengthening  Sydney housing market."
Interesting to note Christopher Joye at the AFR amending his viewpoint on the risk of an Australian property bubble forming over the coming year.
I expect he's been looking very closely at the RP Data index figures in detail and come to the conclusion that the major capital city markets are now moving rapidly upwards and appear set to continue doing so.
On a day-to-day basis the RP Data Daily Home Value Index appears to move relatively smoothly, but nevertheless q/q and YTD gains have been very strong in Sydney and Melbourne. 
Based on what seems to be happening down at street level in Sydney, I expect there is plenty more of the same to come in Sydney (I've heard people say the same about Melbourne).