Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Friday, 16 September 2016

New motor sales tracking at record

New motor sales at highest on record

The ABS Sales of New Motor Vehicles figures showed a seasonally adjusted 97,929 new units sold in August 2016, now a little below the record level seen in September 2015.

In rolling annual terms the 1.176 million units sold is a record high, although with the September 2015 reading about to drop off the annualised result the peak for the cycle may soon be in. 

Sports Utilities accounted for a record share of sales at more than 37 per cent.

Cheap fuel!

NSW boom

The boom has largely been driven by Sydney and Melbourne, with the state of New South Wales notching up a record 394,875 sales over the year to August.

Experiences overseas have shown that cities become less liveable at a headcount of around 5 million.

Thus from this Sydney property market cycle forth we might expect to see a shift in dynamics with inner suburbs outperforming as folks pay a premium to avoid a painful commute (actually this is already happening according to market commentary).

Parramatta Road is a nightmare, and it's set to get worse during the construction of the West Connex motorway. 

Production stalls

Automotive production volumes have declined dramatically since 2012. Although annual volumes have held up over the last year, sadly production will fall sharply further from here as Holden shutters its plants. 

The wrap

Record high sales, but on closer inspection the stimulus from lower interest rates might just be fading a touch nationally. If this is the case it would be in line with what we have seen from the retail trade data and with associated implications for household consumption.