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Empower Wealth Blog post by Empower Wealth

Property Hot Spots – Property Experts Identify the Most Promising Postcodes

Empower Wealth Research Director Jeremy Sheppard appears in Qantas Travel Insider, revealing the property hot spots set to boom based on his latest research algorithm, Demand to Supply Ratio.

This in-house Property Research takes out all the guess work from buying an investment property, providing detailed analysis and predicting the next location and property purchases for our clients, giving our clients peace of mind that they are making informed decisions. The key tool we use for this is the Demand to Supply Ratio. It’s a measure of the level of demand relative to supply in a property market.

The demand to supply ratio, or DSR for short, gauges supply & demand by looking at a range of key property statistics to indicate the level of supply and demand in every suburb across Australia.

 

These key statistics include (click on the title to read more)…

  • Auction Clearance Rates — the percentage of properties that sell at auction compared to all the properties that go to auction.
  • Days on Market — The amount of time that a property will spend on the market
  • Vacancy Rate — the percentage of properties in an area that are vacant or unoccupied at a particular time.
  • Stock on Market — the percentage of properties that are currently advertised for sale compared to the total number of properties that are in the market.
  • Vendor Discount — the difference between the original asking price of a property listed for sale and its eventual sale price.
  • Ripple Effect Potential — Capital growth usually starts at city centres, and then it flows out to the middle rings, before eventually out to the fringe suburbs, much like ripples on a pond flow out from where the stone was dropped.
  • Market Cycle Timing — is a score out of 100 for the likelihood that a property market is about to enter its next growth phase.
  • Rental Yield — the percentage of rental income versus the value of the property
  • Percentage of Sales by Auction — properties that are sold by auction versus other methods, such as private treaty.
  • Proportion of Renters — the percentage of renters versus all residents.
  • Neighbour Price Balancing — the difference between the houses in neighbouring suburbs and the houses in a suburb under analysis
  • Long Term Growth — the compound annual growth rate over the last ten years for a property market.
  • Percentage of Open for Inspections — the percentage of properties that have open for inspections out of all the properties that are listed for sale.
  • Unit to House Value Comparison — a measure of the imbalance between prices of units and houses in the same suburb.
  • Online Search Interest — the number of people that are searching for property versus the number of properties that are available for sale

 

For more information, see our Research Page or click on the image to read the full article.

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