Is suburb Median Price a reliable metric to go by? Short answer is ‘No’!

Median Price is one of the most commonly reported property market metrics. All major media outlets and data providers use it to highlight real estate price levels in capital city and regional markets. In this article we will explore whether this metric is a reliable indicator to perform data-driven market research and assess suburbs for investment opportunities…

Vacancy Rate Metric Explained

Vacancy Rate is the percentage of vacant rental properties in an area reported at the end of quarter period. The lower the rate, the better. Low rates are indicative of under-supplied markets with upward pressure on rents and cash-flow yield. It’s much easier to find tenants in these markets.

Days on Market (DoM) and Discounting Metrics Explained

Days on Market (DoM) and Discounting are important metrics used by real estate professionals to gauge market demand. Over the last 3 months, our data analysts made good progress integrating additional data sources into our dataset, which enabled us to incorporate these 2 metrics into HtAG reports and dashboards.

Our dev team are now focusing on enabling this feature on the site, targeting an early December deadline. In this post, we are releasing the preliminary Q3 DoM/Discounting report for 3,342 suburbs to the public. The table below summarises these 2 metrics for house, townhouse, unit and land sales in Q3.

Please read till the end to see the top performing market in Australia right now. I also hope you can help me answer the questions in the last paragraph.

Deep Dive into the HtAG Algorithm with The Investor Lab

Did you know that you can outperform other investors by predicting the future of the property market? What if there is a way for you to foresee how it will be doing in the next three or four years? If you are an existing HtAG Subscriber you may already know that as unreal as it sounds, it is possible.

Matt and Sasha had a lot of fun chatting with Goose from the Investor Lab about machine-learning algorithm and how it’s different from AI… What makes the human element essential to this kind of technology… Why there are multiple growth drives that factor in… And lots, lots more!

In this video, we cover:

  1. The origins of Higher than Average Growth [04:49]
  2. The team behind HtAG [09:11]
  3. Using past property market performance data to predict the future [11:41]
  4. Challenges in predicting the property cycle, all variables considered [15:41]
  5. How HtAG measures accuracy [18:15]
  6. AI vs machine-learning algorithms and their roles in property investing [20:09]
  7. The downside of applying technology to property investment [25:21]
  8. The biggest drivers of the growth of an area [30:02]
  9. The future of HtAG [36:16]
  10. Data interpretation still requires a human element [37:45]
  11. The only way to get your answers would be to keep probing [41:15]
  12. To train an algorithm, you have to feed it with a good diet of healthy data [42:40]

Visualising Spill Over Effect and Property Demand Profile

In part 3 of our blog series, we highlighted the benefits of GRC feature. In this post we will provide an overview of the last 2 tabs on the LGA pages. Heatmap tab is a different way of presenting the GRC information in that it permits clients to look for meaningful relationships between areas and find growth clusters in terms of their rate of change. It permits for a bird’s eye view of the council area that not only highlights the geography of growth, so to speak, but also enables customers to ascertain growth corridors within a particular locality that might possess better market fundamentals and thus be of higher investment grade. The red indicates negative YoY growth while green highlights positive YoY growth.

Introduction to Growth Rate Cycles

Determining market fundamentals from ‘behaviour of the curve’ i.e. forecasts from Part 2 in this blog series is not always sufficient. It becomes pertinent only when considered alongside the rate of growth for an area. This information can be obtained from Growth Rate Cycle tab, which we will focus on in this post.

The GRC (Growth Rate Cycle) represents the rate of growth change in median value and is a little different to the ‘property clock’ which has predominantly been used by investment professionals to determine the position of the area in a cycle. The best way to highlight this difference is to explain the philosophy behind the GRC and the property clock cycle notions…

HtAG Platform Overview Video Pt.3

This is the 3rd and final video in the HtAG Platform education series. In this video we cover off:

  • Deep dive into the forecasts graphs
  • Learning how to read the GRC graphs for council and suburbs
  • Learning how to interpret LGA heatmaps & scatter plots
  • Interpreting the Demand Profile Tab
  • Conclusion to the Camden Council case study with 3 suburbs earmarked for investment

<<< Watch Part 2 of this video <<<

<<< Watch Part 1 of this video <<<


HtAG Platform Overview Video Pt.2

This is the second part of the HtAG educational video series. We will continue with the example from Part 1 and explain the following:

  • Contextual Interpretation of HtAG data in terms of strategy and personal circumstances
  • Deep dive into GRC (Growth Rate Cycle)
  • Combination of GRC and other metrics for property market assessment
  • LGA page overview
  • Interpreting the forecast graphs for median price & rent

<<< Watch Part 1 of this video <<<

>>> Watch Part 3 of this video >>>

HtAG Platform Overview Video Pt.1

We have recorded this video to introduce HtAG customers to our platform. It explains how to apply our proprietary set of tools to perform property market research, covering most of the current features available. Each feature will be explained in detail via the screen capture, which is the format of this video series.

This is the first video in the series, in which we explain the following:

  • How to use LGA map of Australia to measure council area capital growth rates
  • LGA/Suburb Ranking table and the use of filters / optional column toggles
  • Confidence levels and their significance
  • Research considerations when using the ranking table (with an example)
  • Introduction to GRC (Growth Rate Cycle)

>>> Continue to Part 2 of this video >>>

Can you see into the future and predict real estate market trends?

AI, Machine Learning, Big Data are not only IT industry buzz words but are established technologies with real-life applications. These technologies have already solved several everyday problems in the recent decade. For example, Google Maps gets you from point A to B via an optimal route in peak traffic using Big Data and Machine Learning. … Read more

Introduction to HtAG Property Investment Platform

In this case study, the author assumes the role of a hypothetical DIY investor, who is researching the Camden Council property market. He is interested in investing in this area due to its proximity to his other investments that have performed well in the past. He recently obtained preliminary advice from an investment professional, whose rationale he would like to vet by doing his own due diligence using the HtAG platform.