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.

Tuesday, 1 July 2014

More from RPD...

RP Data's press release added on Sydney:

"From a total returns perspective, Sydney once again stood out as having provided the most outstanding performance.

Combining the capital gain with the gross rental yield over the year has provided Sydney home owners with a total return of 20.2 per cent over the financial year."

That is some year for Sydney. The broad middle market outperformed nationally:

"Across the different price segments of the housing market, the broad middle -priced sector of the market is now showing the highest rate of annual change.

Dwelling values at the most affordable end of the capital city housing markets have moved 8.8  per cent higher over the past year compared with a 10.3 per cent capital gain across the most expensive suburbs and a 10.6 per cent increase across the broad middle fifty per cent of the capital city market."

As for the unusual theory that apartment prices in Sydney may possibly have peaked, RP Data's index saw unit prices leap by 3.9% m/m in June to median of $585,000 to be up 12.2% y/y (click image):


Source: RP Data

Sydney's apartment rents have continued to rise strongly over the past five years, so yields on units have remained at 4.6%, as compared to only 4.3% for units in Melbourne.

Nationally the picture is much more subdued, with prices having declined over the past quarter in Adelaide, Melbourne, Hobart, Canberra and Darwin...and thus, nationally.