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

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

Wednesday, 21 January 2015

Sydney Change

I've been on a bit of a sabbatical from Sydney of late. First full day back in the office yesterday, with the harbour and heads looking grand as always.

What else is new? The $6 billion Lend Lease Barangaroo project is now coming on apace. When the project is finished Barangaroo will be spectacular and Australia's newest suburb. 

There is a small amount of residenitial building within the development - 2 bedroom apartments kick in at around $2 million - but the row of colossal towers are largely commercial in nature which will lead to an impressive oversupply of office space in the Sydney CBD.

Lend Lease is also busily reconstructing the other end of Darling Harbour close to Chinatown. Cranes are everywhere, signifying the commencement of building at the new International Convention Centre (ICC) as part of the massive and glitzy Darling Harbour Live regeneration scheme.

I had the dubious privilege of enduring the demolition of the old Sydney Convention Centre (SCC) last year as I was living at that end of the harbour. Mmm!

The impact of Chinese developer capital from insurance and pension funds is clearly visible across inner Sydney - as well as in the inner west in suburbs such as Erskineville, where Hong Kong's Golden Horse group just recently bought a residential site for a record $350 million.

Below I have photographed Goldfields House which sits opposite Circular Quay station (close to the Opera House). This tired old block has the redeeming feature of wonderful views and just sold in December for a cool $425 million to China's Dalian Wanda Group.

Between 2009 and 2015 the estimated value of Chinese investment in overseas real estate has skyrocketed from  from around US$600 million to more than US$15 billion. Plenty of that is finding its way into Sydney, Brisbane and Melbourne, in that order.

What else? The Pie Face franchise group has seen its high cost structure exposed sending the group into voluntary administation. This is sad to see, particularly for franchise holders - I'm a veggie myself, but they sure did serve a fine coffee. Shame.

53 Martin Place, the former Lindt Cafe coffee shop next to our office and my one-time local has now been closed after the tragic hostage siege. Flowers at the front of the building are a poignant reminder of that awful day.

 The rest of Martin Place is under construction, such as number 5...

And I do mean all of it. It's been like working in a construction site for at least a year now. Also number 20...

Actually, this is not quite true. 

There is one place on Martin Place where nothing has changed - the Reserve Bank of Australia! No change to the official interest rate has been implemented by the RBA Board since 6 August 2013, which is getting close to 18 months and counting. 

When it finally comes the next move in the cash rate appears likely to be down to 2.25 percent.

Stay tuned for a few forthcoming blog posts with photos from Brisbane concerning the new supply of apartment dwellings coming online in the Queensland capital.