Pete Wargent blogspot

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

5 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's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete 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 & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Wednesday, 16 July 2014

Mining states see increase in vacancy rates

SQM Research released its vacancy rate data for June 2014, which showed an increase in the national vacancy rate to 2.3% (May: 2.2%).

The data by capital city showed something of a mixed picture (click chart):

Adelaide and Hobart, two cities where property markets have been relatively lacklustre, which tends to impact the level of new supply, have seen vacancy rates fall to relatively tight levels at just 1.6%.

This is good news for landlords, and not such good news for tenants.

On the other hand, the past 12 months has seen vacancy rates increase in the cities more impacted by the peaking of the mining and resources construction boom:

-Darwin 0.8% to 1.6% since June 2013;

-Brisbane to 2.0% to 2.4% since June 2013; and

-Perth to 1.6% to 2.5% since June 2013.

Vacancy rates have remained fairly steady in Sydney over the past year, now sitting at 1.9%.

In Sydney's case, we might expect to see vacancy rates in some inner southern suburbs drag up the city-wide averages over the coming years.

Meanwhile Melbourne continues to record the highest vacancy rate at 2.7%, although this is down from the higher level of 2.9% recorded a year ago.

Overall, the increasing vacancy rate suggests this suggests that rental growth should be relatively soft, and in this era of lower inflation certainly softer than it has been in the past.

SQM Research provided insightful commentary on the data in its release here.