Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

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.

Wednesday, 30 April 2014

HIA: Thunderous increase in capital city land values +22.3% y/y

The Housing Industry Association just pinged through its latest release on residential land values.

As at December 2013, the weighted median land value across Australia's 6 capital cities increased by a thunderous 22.3% in the 12 month period.

In the regional Australia, lot values increased a much more sedate 3.6% year-on-year, giving the chart the illusion of a somewhat steadier increase.


The 4.2% increase in lot values in the quarter sees residential land values easily soaring to their highest levels on record.

As noted previously, it was very hard to see how inner city dwelling prices could fall sustainably over any meaningful period of time with that kind of intense pressure and demand for land.

Clearly the lack of available supply of land for detached housing is also playing its part, though.

"The supply of residential land is falling behind the demand for new homes" said Shane Garrett, the HIA's senior economist.

Tim Lawless of RP Data said that low interest rates were stimulating demand across the sector leading to higher prices.

The building approvals data has shown a massive pick-up over the past year, but nearly all of the increase has related to apartments rather than detached houses.

Australia needs a better longer term plan to shift the focus away from shoe-horning millions more people into just four popular locations.