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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Tuesday, 19 April 2016
Melbourne vacancy rates in decline for nearly 2 years - lowest since 2010
Ah, right on cue.
I have noted a couple of times lately - including here and here - how, despite many warnings of apartment oversupply, given that most new dwellings through this unique market cycle are in effect financed by offshore investors, many units may never make it to the local rental market.
As such, combined with strong population growth in the largest cities, the predicted oversupply to date has not materialised.
In fact, in the more popular parts of the largest capitals rental stock levels seem to have tightened (secondary locations, not so much).
As if to underscore the same point, SQM Research released its latest data yesterday which showed Melbourne's vacancy rate having declined all the way from 2.7 per cent in June 2014 to just 1.9 per cent in March 2016.
And this in spite of the biggest construction boom in Australian history.
Sydney's vacancy rates are much lower still at just 1.6 per cent, with asking rents for units up by +5.4 per cent year-on-year.
Meanwhile, Canberra's vacancy rates have tightened quite dramatically to just 1.1 per cent from 1.5 per cent a year ago.
And Hobart continues to have a chronically low vacancy rate of just 0.9 per cent.
SQM noted that vacancy rates have even declined sharply in apartment oversupply hotspots that everyone knows about such as the Melbourne CBD (1.9 per cent), South Bank (3.7 per cent), and Docklands (2.9 per cent), to sit below their respective long run averages.
The only major conurbations or capital city sub-regions presently showing signs of oversupply according to SQM are Perth, Darwin, and the Brisbane CBD.
Read SQM's release here.