Pete Wargent blogspot
Co-founder & CEO of AllenWargent property advisory & buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.
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.
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"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'.
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Thursday, 16 March 2017
Gladdy nearing the bottom
Tide turning for Gladstone
Back in 2011 Gladstone property was all the rage.
Unfortunately the predicted housing boom was based upon temporary factors, including a resources construction boom which finally an almighty peak in Queensland in the first quarter of 2013.
As construction turned to production, the housing boom turned to dust, despite unfounded claims that the new residential development could never lead to oversupply.
Over the last three years alone asking rents for houses have collapsed by 46 per cent.
Units have fared even worse with asking rents down by 56 per cent (for landlords lucky enough to find a tenant).
Source: SQM Research
Dwelling prices have followed a similar pattern, albeit in a marginally less painful trajectory, with unit prices down by 40 per cent over the past three years.
It looks as though the market may finally be set to move into equilibrium as the glut of supply is absorbed and the LNG export boom ramps up.
Vacancy rates in Gladstone have now been falling for 9 months, while rents and prices seem to be consolidating or forming some kind of bottom.
Source: SQM Research
It's all too little and too late for those that bought off the plan at the heady market peak, but it looks likely that the worst is over for now.
Even engineering construction activity began rising again in Queensland from the first quarter of calendar year 2016, but this time around resources projects have not been the driver, although the Adani project is still potentially lurking in the wings.