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).

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 is 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 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'.

"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 of the world's most popular & widely-read financial publications.

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

Monday, 16 March 2015

6 year high for auction clearances

6 year high

Corelogic-RP Data reported that capital city auction clearance rates continued to increase to a 6 year high at the weekend.

Sydney clearly leads the way with a massive 85.1 percent clearance rate, reflective of the huge demand for property in the New South Wales capital.

Domain Group also reported an 84 percent clearance rate for Sydney from a smaller sample. 

Auctions are less popular as a means of sale outside Sydney and Melbourne.

Property mining town "hotspots" suffer

This is very much a capital city story, however.

While Sydney may be enjoying boom-time auction clearances, as I warned here, here and here - as well as countless other places - many coal mining regions are seeing demand collapse, and not only for the commodity itself.

News reports that half a dozen mines have been closed in the Bowen Basin, sending shockwaves through Central Queensland with worse to follow.

Many hundreds of jobs were axed in 2014 with further redundancies and mine closures to come.

The worst hit areas from the coal price collapse will include Bowen, Emerald, Saraji, Dysart, Blackwater, Moranbah...and so on.

Local government has blamed the "high value of the dollar" which seems unusual given that the dollar has fallen from 110 cents to nearly 75 cents to the greenback.

The only thing that can be "blamed", if anything, is that the region is massively leveraged against a commodity price where supply has unsurprisingly soared, while demand has simultaneously taken a nosedive.

As I noted here, this was more or less inevitable, with so many of Australia's producers sitting at the perilous end of the production cost curve.

It's another good reason to invest in property markets with diversified industries.