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).

4 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 Wargent 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'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Tuesday, 27 June 2017

Melbourne population growth blows the blinkin' doors off

Melbourne population explosion

While net overseas migration into Western Australia has fallen all the way back to where it was before the resources boom, more immigrants are once again making their way to Sydney and Melbourne. 


Meanwhile, folks are increasingly moving internally to Victoria from South Australia, Western Australia, and now even from Sydney, the net result being a population explosion in Melbourne. 

Other internal migration trends include Sydneysiders ramping up their cyclical migration north to south-east Queensland.

With net interstate migration to the Sunshine State soaring to a decade high in the final quarter of 2016 this means that population growth is also now picking up again in Brisbane and at Gold Coast. 


Doors. Blown. Off.

The population of New South Wales increased by +1.5 per cent to just shy of 7.8 million in 2016, but comparatively speaking the rate of population growth in Victoria was practically off the charts at +2.4 per cent. 

Of the other states and territories only Queensland and ACT saw significant population growth at +1.5 per cent and +1.7 per cent respectively. 


Adding in the natural population increase to the net internal and overseas migration sees Victoria's population growth hitting a previously unthinkable level at +146,600 in 2016, which is extraordinary.

Population growth has also picked up momentum in New South Wales (+116,400) and Queensland (+70,400). 


Splitting out the state population growth by calendar year shows just how big the leap in Victoria was in 2016, with Greater Melbourne and Geelong swallowing the bulk of the growth in headcount. 


Intercensal difference

Overall, these population trends generally continued pre-existing patterns, but some of the trends appear to have intensified.

The "intercensal difference" calculated by the ABS represents the difference between the newly Census-based estimated resident population (ERP) and the previously carried forward estimates.

In Victoria the intercensal difference was absolutely massive at +108,700, while Western Australia saw the opposite result at -58,400. 

This explains a lot about vacancy rates in the respective capital cities (which have risen sharply in Perth, but have tightened to 7-year lows in Melbourne).

Overall the national intercensal difference nationally netted off to +78,700, meaning that the population today is quite a bit higher than previously thought, now at about 24,570,000.

The three most populous cities in particular have seen their respective pace of annual population growth rising sharply, both cause and effect of the apartment construction boom on the eastern seaboard.

Both Victoria and New South Wales saw a record ~60,000 dwelling completions notched up in 2016, yet in the case of Victoria the rate of building has scarcely kept pace with romping population growth of +146,600.