When we gaze across the landscape of available information related to real estate markets in our land of Oz, it generally falls within two camps – quantitative and qualitative.
Now there’s a section of the brain that believes qualitative measures are the only way to go. It’s the rustic equivalent of a wizened old bloke whittling down a birch branch while rocking on a front porch recalling how the markets ran in his day – all experience and gut feel.
At the other end of the cerebral scale are the lab coat encased quantitative neurons looking purely at the numbers and working through the machinations to form a reasonable hypothesis of what is about to occur in particular markets. In truth, the most effective analysts seem to find a marriage of both.
The various ways we measure influencing factors, from interstate migration to infrastructure spend to employment and even household make up, grows more sophisticated and accurate with each passing year. We often talk of big data and there are more than a few tech billionaires who owe their wine cellar and helipad successes to the idea that we want to capture and use information.
The flip side is this – with so much information available and easily accessible, how do you know what numbers to trust? In addition, what might be important in one part of our nation’s property markets may be inconsequential in another. For example, employment might be a key measure for an area seeking to attract new residents to help drive property prices. In another, infrastructure spending could be the go-to metric.
This month Herrod Todd White look at those measures that matter to our real estate markets across Australia. We’ve asked our offices to identify and discuss what figures, statistics and benchmarks seem to flag movement in their particular service areas. Our experts have revealed their insider musings when it comes to defining the direction of their markets by telling you what they watch when it comes to tracking performance.
To read about what about Brisbane's 'measures that matter', head to page page 42.