Are you wondering how to research real estate?
Comprehensive real estate research is necessary for a successful presence in the Australian property market. Researching real estate allows you to learn about the altering market trends in different locations within a state.
Real estate research is crucial for everyone, whether you are a pro or have recently jumped into the Australian property market or are looking to invest in property overseas.
This article will help you learn terms and tools for researching real estate and you can also check out our investing terms glossary for more.
Suggested Reading: Median House Prices in Australia in the Last 50 Years
Defining real estate research
Real estate research is a thorough assessment of the property market, its trends, the best places to invest, and every aspect concerning the rise and fall of real estate.
The significance of research in real estate
The Australian property market is of substantial size. Therefore, the Australian real estate market has varying trends from state to state and within a state.
The market prices may touch the sky in Western Australia, whereas the New South Wales market may observe a decline at the same time. For this reason, learning about and researching real estate is an essential skill, regardless of your experience in the Australian market.
Also, real estate research reveals significant factors affecting the drift in the market in various regions. For instance, the region’s economy, demography, and demand for investment or living property are crucial market-determining factors.
Real estate research also helps you find the best places to invest in a property. Moreover, you can learn the current and future market value of the area you are living in. This information will help you decide whether to buy a new property within the same area or opt for another location.
Hence, learning to research real estate allows you to analyse and compare the factors affecting the change in market prices, improving your successful investment opportunities.
Overall, researching real estate assists you in making profitable decisions by helping you predict Australian property trends.
Recommended Reading: A Look Back at Australian House Prices History
Sources to start real estate research
If you’re hoping to invest in real estate in Australia, many resources can help you do your research. Some of these data sources offer essential information about the previous market graphs and the factors responsible for those trends. Also, some of the resources provide insight into future market trends.
Most investors are searching for locations with promising future developments, regardless of the current market value of these areas. In this regard, the Australian Bureau of Statistics (ABS) is one of the best places to start the research.
ABS offers facts and figures about the region’s population, unemployment rate, GDP, leading indicators, and other similar stats. This information can help you learn the potential future development of the location.
You can also check out our blog to get information on profitable investment opportunities and current market trends in Australia.
Gain more knowledge: Is Australia in a Housing Bubble in 2023?
How to conduct research in the real estate market
Comprehensive market research involves assessing the trends on macro- and micro levels. Macro-analysis of real estate refers to the generic analysis of the market. Here you will research the changing market trends in different regions within a state.
Microanalysis refers to the assessment of the market at the ground level. In microanalysis, you will research everything about a specific location, including the surrounding suburbs, available properties for sale, employment rate, economy, population, etc.
Starting with the general market research and diving into the micro-level research later is preferable.
Factors to consider while doing real estate research
The market tilt to the seller or buyer
The most lucrative markets for an investor are the ones with beneficial buying conditions. These markets have plenty of properties for sale with comparatively limited demand.
This market situation is favourable for buyers, offering plenty of opportunities to buy and invest in the property.
Contrarily, the seller’s markets have restricted the supply of properties of sale with high demand. Hence, research the surrounding suburbs with high demand compared to the available properties.
Research population, economy, and employment rate
Specific factors, including the employment rate, GDP, average property prices, and population, are crucial for predicting future market trends.
You can get the most information by studying the Australian census data of the last five years to learn the demographic data of any location.
For instance, Research Vic 3095 is a small suburb of Melbourne, with a population of around 2700 people. Research, Vic is best suited for families looking for a peaceful place to raise their children.
Neighbourhood amenities
One of the most crucial factors for an investment opportunity is the availability of neighbourhood amenities for the residents.
The facilities include the availability of transportation, neighbouring educational institutes, parks, and marketplaces. Indeed, the required amenities change based on the demographic profile.
For instance, if a specific location is home to young couples with children, they will need good schools, parks, and peaceful neighbourhoods.
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