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'.

Sunday, 14 January 2018

Sydney land values soar again

Up & away

New South Wales saw another massive +14.6 per cent increase in total land values in the 2017 financial year, to more than $1.7 trillion.

This year's figures are not used directly for the calculation of rates, which are only updated every three years. 

The NSW Valuer General Report showed that once again residential land values in Sydney have been tearing along, with the state's residential land values rising by +14.1 per cent to $1.4 trillion in the financial year to 30 June, while rural land prices also increased on improved crop yields. 


Total land values have now recorded double-digit gains in financial years 2014, 2015, 2016, and 2017 respectively, including a thumping +20.7 per cent increase in FY2015. 

Rezoning drives uplifts

Some LGAs have been amalgamated, so in certain cases the FY2017 figures are not included in the graphic below, but broadly the story was essentially more of the same. 

In blue chip Mosman the median land value ripped $315,000 or +17.1 per cent higher to $2,155,000, an all-comers record for Australia. 

The story wasn't much difference in the eastern suburbs jewel of Woollahra, where the median land value rose by $290,000 or +11.9 per cent to $2,030,000. 

Strathfield was yet again a strong performer with the median land value rising by $240,000 or +16.1 per cent to $1,730,000.

Indeed, over the past five financial years the greatest increases in median land value have been recorded in Hunters Hill ($994,000), and Strathfield ($963,000). 

Interestingly the strongest performing LGAs in FY2017 included Ku-ring-gai, where the median land value was up by +22 per cent, and Camden where land values increased by +21 per cent, with zoning changes the key driver in both cases. 


The smallest land price gains in dollar terms over the past five years were recorded in Penrith ($152,000) and the Blue Mountains ($64,000), although in the case of Penrith that still equates to a +69 per cent increase from a low base.  

According to the Valuer General's report the new land values are reflective of the property market as at 1 July 2017 and were based upon analysis of over 52,000 property sales, with volumes considerably higher than across all recent years. 

Note that the Sydney property market cooled significantly in the second half of the year, and this is not captured in data for the 2017 financial year.