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, 7 February 2017

Sydney median prices rose in 2016

New highs for Sydney

I'm not yet clear whether there has been a revision to the Residex house price index methodology.

But, for what it's worth, here are the latest median prices, which have now been disclosed.

The Sydney median house price hit a new high of $1,117,500 in December 2016.

The Sydney median unit price increased to a new high of $725,500.

The median unit price rose by 7.4 per cent in 2016, while the median house price increased by 7.1 per cent.

One of the metrics I've been tracking has been the change in Sydney unit prices when priced in Chinese yuan terms. 

As you can see in the chart below, Sydney unit prices have increased by only 15 per cent since this cycle began for offshore Chinese buyers. 

Rising prices have therefore not been much of a deterrent for Chinese buyers.

However, regulatory measures have been.

Upon discussion this week with developers in Brisbane, it's clear that activity from China has, if not halted, slowed up dramatically since last year. 

Rates on hold

In other news, there were few surprises in the Reserve Bank's Monetary Policy Decision, whereby the official cash rate was left in hold at 1.50 per cent.

The RBA expects reasonable growth in the economy in the December quarter, and expects growth to remain at around 3 per cent over the next couple of years. 

The real cash rate now sits just below zero.