Conducting thorough real estate research involves a comprehensive assessment of various factors that influence the current and future conditions of a specific area. In Australia, the property market is segmented by states and further into smaller regions. Given the country’s vast size, significant variations exist across markets, with house prices exhibiting diverse trends in different states and even within regions of the same state, such as metro and regional locations.
Understanding these property market trends requires consideration of numerous factors, including supply and demand dynamics, economic indicators, and demographic trends. Researching the property market is essential for individuals living in an area or intending to make a property purchase, enabling them to anticipate future patterns, assess potential changes in property value, identify investment opportunities, and make informed decisions about homeownership.
Key Aspects of Property Market Research
Where to Research
- Utilize reputable property data sources like CoreLogic, Domain, and PropertyUpdate for historical and predictive insights.
- Explore the Australian Bureau of Statistics (ABS) for building approvals, leading indicators, and population data.
- Access real estate websites like realestate.com.au to analyze current property prices, supply and demand, and population demographics.
How to Research
Supply and Demand:
- Assess housing supply versus demand to identify investment opportunities.
- Consider population growth, approved building projects, and demographic factors influencing future demand.
- Analyze vacancy rates and understand fluctuations by examining underlying causes, such as population dynamics.
- Evaluate employment growth, average property prices, and disposable income.
- High employment growth and disposable incomes in an area indicate potential for increased property investment.
Average Property Prices:
- Compare current average property prices to determine the reasonableness of a proposed price.
- Attend property viewings and explore the area in person for a firsthand understanding.
- Consider the market cycle of the suburb, aiming to buy in the early stages of an upturn.
- Explore gentrification trends that can positively impact property prices.
- Leverage demographic data to assess residents’ needs and tailor property investments accordingly.
- Align property features with the preferences and demographics of the local population.
- Depending on investment goals, focus on statistics such as Demand to Supply Ratio (DSR), Days on Market (DOM), Ripple Effect Potential, Vacancy Rate, Rental Yield, and Auction Clearance Rates.
Indicators of Strong Demand:
- Low DOM: Properties selling quickly with a short time on the market.
- Little Change in Asking Price: Sellers not reducing prices, indicating strong buyer competition.
- Properties Are Selling: High auction clearance rates and open inspections attracting numerous interested buyers.
- Limited Available Property: Limited property availability due to quick sales, signaling high demand.
In conclusion, comprehensive property market research empowers individuals to make informed decisions, anticipate market trends, and align investments with their financial goals.
Real estate market research for professionals
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