HEAT MAPS TUTORIAL

Video Transcript content

A cluster is a group of suburbs that neighbour one another, or at least are near to one another. It could be a group of only 3 or 4 suburbs, or may be dozens.

Clusters of heat (that is, areas where neighbouring suburbs are also showing potential for capital growth) help reduce your investment risk and lead to higher returns. This is because there is strong demand in the whole area, and this demand is rippling out to neighbouring suburbs as well, which is a clear indication that price growth is or will be taking place.

A cluster of heat lends more weight to the argument that something good is going on in the area. While standalone markets can be their own hidden gems, they come with more risk and could sometimes be attributed to anomalies in the data instead of underlying demand in the market. This doesn’t mean you should avoid them at all costs – it means you need to be much more diligent and have a higher risk appetite.

For us, we always look for clusters of heat, so your money is safer and returns are much more predictable.

The heat map uses colour to highlight better markets. The colour each suburb is shaded, reflects whether that suburb has better or worse investment potential according to the statistic you have chosen to map.

For example, if you are heat-mapping by yield, suburbs with higher yields will be highlighted more than suburbs with lower yields.

Some statistics, like the Auction Clearance Rate, indicate better investment potential when they are higher values, for example 100%. But other statistics, like the vacancy rate, reflect a better market when they are lower values, for example 0%.

If you change the statistic being heat-mapped from a “higher-is-better” to a “lower-is-better” statistic, the heat map automatically swaps the shading to ensure the better markets are always highlighted using the most prominent colour. This means your eyes become accustomed to looking for this shade, which indicates investment potential.

Hover your mouse or tap on a suburb to see its name and the value of the statistic being heat-mapped.

Click on the suburb you like. The page will refresh, showing you more research options to delve deeper into that specific suburb.

It varies based on the area you are looking at.
In a big city like Sydney, it could be 700; or in a smaller city like Brisbane it could be around 400.
Smaller suburbs like Kingaroy might only be one or two suburbs.

Again, it depends on the area – but there are plenty of hidden gems out there… you just need the right tool to find them!

Yes, you can change from Suburbs to any other type of geography:

· Postcodes
· Local Government Areas (LGAs)
· Significant Urban Areas (SUAs)
· Statistical Areas level 2 (SA2s)
· Statistical Areas level 3 (SA3s)
· Statistical Areas level 4 (SA4s)
· States

However, very large geographies, like SUAs, SA4s and states may not be so helpful.

If you choose to heat-map by postcode instead of suburb, the data for all the suburbs within each postcode is combined. The figures given for each postcode are the combined figures for all suburbs within that postcode.

Data at the suburb level can sometimes be unreliable, depending on the statistic. For example, auctions may not be common in some suburbs. Combining the data to a larger geography makes it more reliable. Mapping by postcodes, LGAs, SA2s and SA3s may be preferred to reduce risk and to highlight whole areas of potential instead of isolated single suburbs.

Yes. You can search Australia-wide for hotspots – so you are not limited to the opinion or the “stomping ground” of a single Buyers Agent or company.

You can ask the tool to hone in on a specific state, city or significant urban area (SUA) of your choice – and you can conduct as many of these searches as you like.

Yes, you can target hotspots in any city, state, local government area (LGA), significant area (SUA) or SA (Statistical Area).

So if you’re interested in borderless buying, you can use the tool to check out each city’s hotspots and compare the clusters of heat within each.

You can also use other tools within our property research platform to refine this market comparison and accurately assess one suburb in one state to another in another state. This will help you to see which one has a higher Demand to Supply Ratio (DSR) and more opportunities than risks. Our “Market Metrics” tool will allow you to compare these individual markets at a granular level. So, start up top with the heat maps, and then narrow in on the specific location using the other tools at your disposal.

Borderless buying didn’t just get “easier” – it got more accurate. The data doesn’t need to “sell” you on a state or convince you of an upcoming area… it simply states the facts and reveals areas where demand exceeds supply.

Yes. You can refine your search to reveal any of the key property market statistics that accurately assess the supply and demand of a market.

So in this case, you could refine the search to show “Auction Clearance Rates” and the heat map will reveal areas where more properties are being sold by action than other sales methods. This can point at locations that are hot and are favouring sellers rather than buyers. (If this is the case, as an investor you may want to look at other markets instead so you avoid buying at the peak.)

Yes. You can use the Heat Maps feature to show heat for all key property statistics.

These property statics include: typical value, rental yield, vacancy rates, average vendor discount, auction clearance rates, percentage of stock on market, neighbour price balancing, online search interest, statistical reliability, median scores, proportion of renters, market cycle timing, long term growth indications, ripple effect potential, percentage sales growth, percentage rental growth, percentage of sales by auction, percentage of sales listings with open inspections, unit to house value comparison, demand to supply ratio and more.

You will find question mark icons throughout the tool that give you additional help and clear instructions as you go along. Simply click this icon to get the information you need.

If, for whatever reason, you still need assistance, we also have a “Help” button on every page where you can ask us anything you like.