Suburbs that have opposite market cycles

Home Forums Property Market Research Q&A Suburbs that have opposite market cycles

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    • #26339
      Avatarend_of_cosmos
      Participant

      Hi team HtAG. I was wondering if you have data on suburbs or Councils that have opposite market cycles. For example, if one suburb in Western Australia declines by 5% in one year, there will always be a suburb in Queensland that will grew by 5%. These markets are always connected in an opposite way. This way, if I know that Western Australia suburb has declined 5% this year, Ill know that the Queensland suburb has grown 5% this year.

    • #26358
      AlexAlex
      Keymaster

      Hi endofcosoms,

      A very intersting question. We do have correlation data for median values of all suburbs in the country. What you are looking for is a significant negative correlation between 2 or more markets. Happy to share some examples here.

      Just out of interest, how do you envisage putting this information to use? Are you looking to establish which suburbs have opposite cycles and predict peaks and bottoms in opposing markets?

    • #26389
      Avatarend_of_cosmos
      Participant

      It’s like developing a growth map as opposed to geographical map. Using your platform, we know which areas will grow base on the provided forecast. However, the negative correlation will serve to project past the two-year forecast already provided so that in addition to knowing which area is positioned for growth, we will also know which areas are positioned for growth later in respect to these same areas that are growing now. I invest in one now, and then once the areas I have invested in now turn to a downward spiral, I will invest in areas which are its negative correlative to balance the portfolio. It is for finding pattern which the Australian market so that no money ever invested is idle.

      On a flip side, knowing a negative correlative to a growth area can also assist me with purchasing in good suburbs while they are at the bottom. Although you do have the GRC feature which tells us which areas are at the bottom, having a correlation analysis puts this more in perspective, because we can know how much areas that are on the bottom now will grow in the future. And more importantly, for how long. The existing GRC and forecast feature only touches upon the ‘the longevity of future growth’ predicament which can be completely resolved by correlation patterns of growth.

      Hope all of this makes sense. If it does not, please let me know so I can explain those elements better.

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