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'.

Monday, 18 July 2016

Perth vacancies hit 5 per cent

Perth vacancies rise

Perth vacancy rates rose to a fresh cyclical high of 5 per cent in June according to SQM Research, suggesting that there is a way to go before any property market recovery takes hold in the Western Australian capital.

It's not that unusual for a capital city to experience elevated vacancy rates towards the nadir of a cycle.

In outer ring Sydney we saw vacancy rates of above 5 per cent around 2003 and 2004, for example, yet prices are well on their way to all but doubling since that time. 

Deloitte Access reported this week that the worst is now over for Western Australia's economy after 18 months of declining activity.

Nevertheless, according to CoreLogic-RP Data sees home values 4 per cent lower than a year ago in Perth, and the bottom is not yet in.

There might be light at the end of the tunnel for the resources capitals.

The seasonal Darwin market looks as though it has already turned a corner with the vacancy rate in the Top End falling to 3 per cent.

But Perth is struggling to absorb a still elevated number of dwelling completions.

Nationally the vacancy rate of 2.5 per cent in June was marginally higher than the 2.4 per cent recorded at the same time last year.

Smoothing the figures on a 4mMA basis suggests that Hobart and especially Canberra have seen their respective market tighten considerably as the hiring freeze has thawed in the Australian Capital Territory.

Melbourne and Sydney are still absorbing apartment completions reasonably comfortably even at this late stage in the construction cycle, with completions slower on average to come online for multi-unit developments.

SQM Research reports that asking rents for Sydney units and apartments rose by 5.3 per cent over the financial year. 

Last week Domain reported a similar result, with median unit and apartment rents in Sydney up by 5 per cent over the year to June 2016.

Here's what the ABS reports for rental prices, indexed to 100.

That said, there is a record high volume of townhouses, units, and apartments still under construction in Australia, as I looked at in more detail here

SQM's media release can be found here.