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'.

Monday, 20 July 2015

Land values escalate on lower volumes

Land values jump higher in Q1

Ultimately dwelling prices are partly a derivative of the value of the land which sits underneath.

And capital city land values in particular are roaring higher.

The Housing Industry Association (HIA) released its latest land price data for Q1 2015 in conjunction with CoreLogic-RP Data.

It showed that land prices jumped another 4.1 per cent higher in the March 2015 quarter.

Nationally residential lot values have increased by around 19 per cent over the past 5 years.

On a national basis lot values increased by 4.1 per cent over the March quarter to be 8.2 per cent higher year-on-year.

We already saw from the 2014 figures that the increases have been driven almost exclusively by capital city rather than regional markets (where there is considerably less pressure on land values).

The HIA made this very point abundantly clear in its Q3 2014 release when it noted:

""We have seen weighted median lot prices in capital cities which well outpaces that for regional Australia".

On a rate per square metre basis, Sydney ($678) and Perth ($664) now have the most expensive lot values.

According to the HIA-CoreLogic RP Data release, a major driver of higher land values has been the lack of shovel ready land.

Transactions fell by 5.2 per cent in the March quarter to be 17.6 per cent lower over the past year.

Land sales peaked in the June 2013 quarter but have declined by around 30 per cent since. 

I previously took a look at what is happening to Sydney land values in particular in this blog post here