Real-time thoughts & analysis of the markets, economy & more...
Co-founder & CEO of AllenWargent property buyers & WargentAdvisory (subscription market analysis for institutional clients).
Check us out here
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 better 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.
Wednesday, 24 August 2016
Perth vacancies rise again
Perth vacancies rise further
SQM Research reported that nationally vacancy rates were slightly higher at 2.5 per cent in July, and slightly higher than one year ago when vacancy rates were 2.4 per cent.
Over the past year vacancy rates have tightened in Melbourne, Canberra, Hobart...and even Darwin!
Vacancy rates have been fairly flat for most of the past year in Sydney.
In Brisbane, rising inner city apartment vacancy rates are pushing the city average higher, up to 2.9 per cent in July.
Meanwhile in Perth, vacancy rates have hit a fresh cyclical high of 5.2 per cent, up from 5.0 per cent in June.
Perth's property market is beginning to look increasingly attractive from a price-earnings ratio perspective, but the time for investors to jump in may not be yet (after all, a rental property ideally needs a tenant, and asking rents have declined too over the past 12 months).
To make a bit more sense of the trends, the figures have been smoothed on a 4mMA basis below
It appears that the Darwin market may have turned a corner, while Hobart and Canberra have tightened significantly.
Going forward, the volume of apartments under construction in Melbourne may result in vacancy rates rising again in the Victorian capital.
According to SQM's Managing Director, Louis Christopher:
"Melbourne may start to record higher vacancies next year under the weight of completed apartment developments; but for now Melbourne remains a landlord's market.
Sydney is unlikely to record such a surge in vacancies as we believe the city's population expansion is going to absorb much of the new stock."