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'.

Wednesday, 2 August 2017

Building approvals holding up

Approvals solid

Private sector building approvals rebounded by +10.9 per cent in seasonally adjusted terms to a total of 18,453 in June, driven by a timely jump in attached dwellings. 

In trend terms total approvals have remained broadly unchanged since the end of 2016.

Despite the monthly rebound the annual number of building approvals continues to ease steadily, now trickling down towards ~219,000. 

Sydney powers on

House approvals have been fairly flat over the past year, although annual house approvals in Perth are now some 40 per cent below their 2014 peak. 

Apartment approvals have been trending down for some time in Melbourne, and have dropped by some 42 per cent from their peak in Brisbane, before now appearing to have found a plateau of sorts. 

High rise trends

Annual high rise approvals of four or more storeys continue to decline from ~78,000 in October 2015 to ~62,000.

And this downtrend is mirrored across each of the most populous states.

The wrap

Overall, this was quite an upbeat result which beat market expectations, built on the back of a boost in demand from owner-occupiers, and especially in the apparently evergreen Sydney market. 

Despite fears of a downturn in the building pipeline, after accounting for a strong lift in non-residential approvals the annual total value of building approved remains close to its highest ever level at more than $115 billion.