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'.

Tuesday, 13 December 2016

Housing stock hits $6.2 trillion

Stock value up in Q3

The ABS Residential Property Price Indexes reported that the value of Australia's dwelling stock increased steadily by +$251 billion or +4.3 per cent over the year to September 2016. 

The stock value has increased by $1.74 trillion or +39.3 per cent over the past half decade to $6.2 trillion, almost precisely the opposite of the most assured of gloomy forecasts at that time, which were for a 40 per cent decline! 

Nationally home values increased by +1.5 per cent in the quarter to be +3.5 per cent higher than a year ago, with gains seen in all of the main cities outside the resources capitals. 

This is the slowest annual gain in over three years, with Sydney leading the quarterly price gains at +2.9 per cent for houses and +2.1 per cent for attached dwellings. 

A year ago, the pace of growth had been as high as +10.7 per cent. 

Over the past year Melbourne recorded the fastest pace of home value growth at +6.9 per cent, with the Tasmanian capital city of Hobart not far behind. 

Indeed, at the capital city level detached house prices outpaced attached dwellings, reflective of the new apartment supply that is coming online. 

State versus state

Over the past five years the value of the dwelling stock has increased by $1.74 trillion, led by New South Wales (+941 billion), Victoria (+464 billion), and Queensland (+$174 billion). 

The mean dwelling price increased over the past year in New South Wales by +$36,700 to an all-comers record high of $822,100, and by +$25,500 in Victoria to a record $651,600.

Finally, the increase in the number of dwellings in each state suggests that Melbourne has comparatively built a good deal more than Sydney has over the past five years, with the total dwelling stock in Victoria swelling by +10.1 per cent.