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

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

Friday, 13 October 2017

Dwelling construction powers on

Construction holding up

Although lower than a year ago, dwelling commencements were very solid in the June 2017 quarter at just under 53,000 on a seasonally adjusted basis. 

About 219,000 new dwellings were commenced in the financial year.


Completions tracked at a very similar level.


Pipeline

Developers in Sydney are now chewing their way through the backlog.


At the end of June there were still more than 150,000 attached dwellings under construction.


It looks as though by the end of 2017, the apartment construction pipeline will largely be a Sydney phenomenon.


The wrap

The defining feature of this construction boom has been the record number of high-rise apartments.

And these can take years to build.

Most are pre-sold, so there will be no oversupply of unsold apartments, but we can see pockets of oversupply of rental properties, especially in inner city Brisbane. 

Sydney has about 65,000 attached dwellings under construction, which is a record.

Due to faster population growth, the risk of oversupply seems to have abated in Sydney and Melbourne, although Sydney's housing market is clearly slowing.

The pendulum is swinging towards Brisbane and south east Queensland, both in terms of internal migration and property investment.

I'll look at Brisbane's apartment supply in a separate post.