Are you stuck trying to decide exactly when and where to invest in property? Online Search Interest statistics may be your answer.
Don’t worry, you're not alone in trying to pick the best locations from over 15,000 suburbs countrywide. There are countless stories of property buyers finding their property market research overly time consuming and (after fighting off the biased property spruikers) they buy on emotion, only to regret this later as their portfolio stalls on one or two properties and costs them each month in negative gearing.
But there is a different way to pick the best areas for your budget using a proven method that relies on hard facts and very smart data-driven research technology.
It all starts with 8 powerful property market indicators that, together, calculate the gap in supply and demand (and therefore capital growth potential in every suburb) for you so you can get back to spending time with your friends and family knowing your property investment portfolio is working hard for you and not the other way around.
Let’s examine one of these 8 powerful property market indicators… Online Search Interest.
(You can read the whole blog series by using the links in the '8 Supply-Demand Indicators' block)
9 CAPITAL GROWTH INDICATORS
What is Online Search Interest?
Online Search Interest is the number of people searching online for property in a particular area versus the number of properties for sale in that area. For example, if there are 20 properties listed online for sale in a suburb and there were 250 people searching for property in that area, then the Online Search Interest is 300 divided by 20 = 15.
The higher this figure, the greater the demand compared to supply, and the more likely it is that property prices will go up in that area.
Where you can get Online Search Interest stats
It is possible to get this data from the online property portals. However, collating and comparing this data for 15,000 suburbs is obviously a challenge even for the Excel spreadsheet data scientist in all of us.
Of course, we have made this easy for you with our suburb research tool, Boomscore! Check the Online Search Interest for 15,000+ suburbs split by units and houses in Boomscore’s Suburb Profiler. Who knows, if all the other indicators support a high Online Search Interest figure, then you may be the first to spot a suburb set to Boom.
BOOMSCORE - BIG DATA & ARTIFICIAL INTELLIGENCE (AI)
Big data and AI capability makes it possible for the Boomscore capital growth calculator to crunch the data for each of the 15,000 Australian property markets. A task few could do manually even if they knew how. Boomscore simply means you can now find safer locations where prices are most likely to increase faster. Over the past 10 years, Boomscore’s data algorithms have outperformed the ‘hotspot’ picks of some of the more recognised property market research gurus. In fact my (then) 6 year old daughter showed them how easily it’s done using just a few clicks on Boomscore (read how).
Boomscore rates every suburb (by house or unit) out of 100 based on how they perform across the 8 supply-demand indicators in this series. The higher the Boomscore, the more demand exceeds supply, which greatly increases the probability of property value rises in that location for that property type. Get Boomscore.
But be careful with Online Search Interest ...
Online Search Interest data can be slightly unreliable if a potential buyer searches the same property multiple times and the property portal records this as multiple user visits instead of a visit (albeit repeat) by one unique user. While this repeat interest does still show a higher level of interest in an area, and therefore greater demand, it may slightly exaggerate the Online Search Interest count so is just something to be aware of.
Once you have chosen some suburbs, it is probably wise to also turn up to open homes to confirm the real level of interest.
In closing ...
Property prices, and therefore capital growth potential, are influenced by a number of factors. If you understand these factors and how to work with the capital growth indicators available to you, then there is no reason why you can't find the best investment locations to suit your strategy.
There are 15,000 suburbs in Australia - that’s 30,000 property markets (if you take into account the Unit and House markets in each suburb). Despite what the macro property market is doing, there are always viable micro markets out there… and it may come down to one particular street in one particular suburb. In order to find these nugget suburbs you need to compare the data for all 15,000 suburbs (and 30,000 markets) against one another to rank order them and let the cream of the crop float to the surface. And to crunch the numbers you need to have a good understanding of the importance of the data and how to work with it to find or track your chosen suburbs.
If any of our blogs on the subject have peaked your interest, you can download our Free Essential Guide to Property Market Research, or attend our in-depth (but affordably priced) online property research training course (coming soon ~ register your interest now!). And we encourage you to use Boomscore, our tried and tested suburb ranking tool to get you started.
Read next blog ... Vacancy Rate.