HtAG Feature Plan for 2020 and Beyond

Our mission is to provide pertinent and accurate property investment data easily accessible to everyone irrespective of their property investment experience, professional background, and/or financial backing.

For this reason, we strive to think of innovative ways to present and arrange property data so that it provides more insight to our clients and assists them in making informed investment decisions. We endeavour to highlight a ‘new fond’ meaningfulness in different property data sets that were previously considered as either irrelevant or insignificant (or not significant enough).

To this end, our business modus vivendi is to arrange, organise and present data in different ways not only to highlight the potential of suburbs and LGAs but, more importantly, to provide a more attuned ‘lens’ for perceiving and understanding current and future market dynamics.

In response to everything said, we are happy to announce that our Data Science team has been working hard on providing our customers with additional property investment metrics. These additional metrics are aimed at providing a more complete picture of the current relationship between supply and demand which consideration founds every sound property investment decision.

As such, in addition to the medium price metric which predominates our service provision, the following new metrics will serve to buttress what already is a solid and impartial service:

Asking price metric (supply metric)

The introduction of the asking price metric will serve to provide more information on the market confidence and overall consumer sentiment. The asking prices will also be compared to:

  • asking prices in the past and at particular intervals in the year and;
  • at particular intervals in the property clock for the particular area.

This information becomes more useful when compared to the current and projected cycle analysis that HtAG already provides. The accumulated asking prices data will also be used to project or predict asking prices for a particular area.

Listings metric (supply metric)

In the same way as the asking price metric, the listing metric will be used to track the changes in the number of listings to ascertain and forecast market confidence. The current number of listings data will also be compared to:

  • listing data in the past and at particular intervals in the year and;
  • at particular intervals in the property clock for the particular area.

As such, the listings data will have additional filters which will make the listings data more meaningful. In addition to the aforementioned two filters, the listings data will also be compared-aiming to ascertain correlation-to the ‘number of sales data’ in a particular time-frame or market cycle segment (i.e. property clock). The accumulated listings data will also be used to project or predict listing numbers for a particular area.

Listings and asking price metrics become more meaningful when considered together with property cycle information as well as the number of sales data

GRC ranking (market cycle metric)

The new ‘market cycle’ or GRC ranking provides four indicators for each LGA and suburb—bottom, peak, middle (downward trend) and middle (upward trend). The additional metrics for each LGA and suburb are used to ‘rank’ or organise areas based on the position in the property clock, or better yet, based on their trend, that is, whether the median prices in the area have peaked, bottomed or have a middle (upward or downward) trend.

In addition to providing ‘ranking tables’ for each area based on their position in the ‘property clock’, this data will be made more meaningful by highlighting time-series trends and pinpoint patterns in the property clock movement for a particular area in the last 10-15 years in comparison to the present moment. As such, not only will customers be able to understand the position of the area in the property clock, but they will also be provided with information on the length of time spent at a particular position thus being able to time changes in movement from one position to another.

Outlier behaviour will also be pointed out to signal that an area is changing its pattern of movement in the property clock and that it is breaking from the past cycle patterns. The same ‘ranking table’ will be provided for medium rent and parallels drawn between rent clock and price clock.

Discounting metric (sentiment metric)

The discounting metric will be the true and most accurate representation of consumer sentiment. It is a percentage of discount applied to property values, that is, the difference between initial asking price and the selling price. Although it emanates from the supply side of the market, it is an amalgam of the supply and demand metric as it highlights variance between consumer sentiment encapsulated in the initial asking price (supply metric) and consumer demand indicative of the discount applied to the asking price (if any).

This metric will also be organised in a time series fashion to be able to predict and forecast future consumer sentiment. As such, when combined with the new property clock ranking metric described above (point three), it provides clients with an additional layer of meaningful data which can nuance current market conditions in a particular area and improve decision-making.

NOTE: How the combination of these metrics can be used and why it is significant will be discussed in the next blog.

Other planned changes

In addition to the above metrics, the Data Science team at HtAG will also provide a detailed analysis of COVID-19 impact on the property market. As with everything that HtAG provides, the focus on data in the COVID-19 impact report will serve to provide an impartial assessment of the current and future market movements as driven by the changes in the socioeconomic conditions.

On a final note, we will also be providing better compatibility with mobile devices since a considerable amount of our clients and subscribers obtain our services through mobile devices.

Exciting times for everyone at HtAG. We can also confirm that this will not be the end of innovation at HtAG and that we will be very soon coming out with new metrics and new ways of organising information which will assist our clients and subscribers to stay ahead of the curve.

Thank you to all.

Leave a comment