MARKET METRICS TUTORIAL

Video Transcript content

As you can customise your property research, you can pick as many property metrics/statistics as you like!

Not only do you have your “usual suspects” like rental yield, typical value and vacancy rates percentage of stock on market you also have premium and unique market statistics that allow you to get the most comprehensive evaluation of an investment location as possible.

These include: 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.

As many or as few as you as you like. You can customise what you see for any market based on which metrics you consider to be important.

You can create multiple views of the statistics too. You can choose a couple of statistics and perhaps call it “My quick snapshot”. Add half a dozen more statistics and call it “My detailed view”. And then there could be another that you call, “Comprehensive” which might show dozens of statistics.

The choice is yours.

While our premium data is as accurate and up to date as it can be, the reliability of the data will vary based on each specific property market. This is because there is less data available for some markets than others (e.g. rural areas where limited data is available).

This is the key reason why we give you the Statistical Reliability (SR) for the area as well, so you know exactly how reliable the data is.

Other companies typically don’t do this – they’ll just give you the data they’ve got. An SR score helps to give context (and merit) to the data, reducing your risk and giving you more transparency.

Yes, in fact you can even get statistics for postcodes, local government areas and other macro geographies.

For example, you might want to look up the Auction Clearance Rate of Melbourne. Or maybe you want to know the vacancy rate of the Sutherland Shire, or the yield of Bunbury, the Demand to Supply Ratio (DSR) of a certain postcode, etc.

5% is typically a good yield. But you may not find a suburb with that kind of yield. The higher the yield is, the better. But a better question might be, what is a “realistic” yield?

A realistic rental yield will vary based on the suburb you are looking at, and when you are looking at it – so for this reason, it’s always a good idea to look at the context ruler to compare it to the national average.

That said, the following context ruler shows the yield for [SUBURB]

{CONTEXT RULER}

As you can see from the the context ruler, a yield of around {X} was pretty normal in {TIME} around Australia.

You can find the best yielding markets by using Suburb Search.

View the context ruler to get a detailed idea of what is good, OK or bad for any metric.

The most important metric is the Demand to Supply Ratio.

It assesses all of the relevant metrics and combines them into ONE single score out of 100 that gives you an accurate measurement of its investment potential.

In other words: the DSR doesn’t look at the metrics in isolation – it combines them to give you a concise overview of that market. The higher the DSR, the higher the investment potential.

The “stand alone” metrics are also important – especially when assessing the suburb at a granular level so you’re completely across all the numbers. (Obviously, knowing individual rental yields and vacancy rates etc. is pretty useful for us investors!)

But, yes, the DSR is the most important. Please check it.

You can see a list of all the statistics on the Metrics page and from there read all about each one.

You might like to know what a suburb was like at a point in the past, just out of interest, or to check if the data performed as predicted.

To review the past performance of a location, the Historical Charts feature will show you all the history.

You can select to view data for either houses or units or a combination of both. The value shown for a metric will often be a simple aggregate of 2 numbers. So, it is best to choose one or the other rather than combine them. In most cases the split between houses and units in a suburb are not even, so it might introduce some bias.

Yes. Simply click “Get Started” anywhere on this page and you can try out Market Metrics for as long as you like! This way, you can experience the features for yourself and see just how powerful the tool is in locating hotspots, completely free of charge.