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Australian Market Research Unit

Property Market Research & Insights

Welcome to the Australian Market Research Unit

your source for the latest news and in-depth analysis on Australia's dynamic property markets.

As the nation’s leading property market research organisation, AMRU provides valuers, investors, homeowners and industry professionals with the insights they need to make informed decisions.
Track property value movements across all major cities and regions with our monthly housing market reports. Learn about the macroeconomic forces and local factors driving market cycles. Discover trends in buyer demand, housing construction, sales volumes and rental yields. Access suburb-level pricing analytics powered by our comprehensive proprietary databases.

Housing Market Analysis - Ongoing tracking and reporting on national and regional market cycles, price changes, sales volumes, listing trends, and key drivers.

Suburb Profiles - Detailed pricing analysis, sales histories, development prospects, and demographic data for individual suburbs and micro-markets.

Buyer Profiles - Research into different buyer and investor segments, exploring their motivations, preferences and purchasing behaviour.

Rental Market Analysis - Data and insights on yields, vacant rates, tenant demand and rental price movements across different areas.

Mortgage Market Analysis - Research on lending conditions, mortgage rates, credit availability and affordability issues impacting buyers.

Commercial Property Analysis - Valuation data, yields, vacancy rates, tenant demand and future supply projections for retail, office and industrial sectors.

Special Topic Reports - Spotlight reports providing an in-depth look at key property issues like taxes, foreign investment, sustainability, rural markets etc.

Consumer Surveys - Polling home owners, buyers, renters and investors to gather perceptual insights into market sentiment and attitudes.

Moving beyond the numbers, AMRU provides on-the-ground perspectives from our network of expert analysts across Australia. Get behind the data to understand the reasons why different areas perform the way they do. Gain local area knowledge on development projects, demographics shifts and changes to housing preferences that impact prices.
AMRU stays on top of the latest property topics, from auction clearance rates to housing affordability, mortgage rates, generational trends and more. Check our research blogs for regular market updates, special reports, expert interviews and analysis you won’t find anywhere else.
With the most up-to-date coverage and a deep understanding of Australia’s varied property landscape, AMRU is the premier destination for anyone interested in what’s happening in Australian real estate.

Latest News

Expert guide on fixer-upper valuation

Valuing a Fixer-Upper for Flipping Potential

Investing in a fixer-upper to flip for profit is an attractive strategy for many property investors. The key to success in such ventures lies in accurate fix and flip valuation. By estimating the after-repair value (ARV) of a property, investors can calculate the optimal purchase price to ensure a profitable return on investment. This article explores the crucial aspects of fixer-upper valuation and offers insights into making informed decisions when considering properties for renovation and resale.

Understanding Fixer-Upper Valuation

Fixer-upper valuation is the process of assessing a property’s current market value, considering the cost of necessary renovations, and estimating its potential market value post-renovation. This valuation is critical for investors looking to engage in the fix and flip market, as it helps determine the feasibility and profitability of a project.

1. Estimating After-Repair Value (ARV)

The ARV of a property is a projection of its market value after all renovation work has been completed. Accurately estimating ARV requires a thorough understanding of the property market, including current trends, buyer preferences, and the value added by specific types of renovations.

  • Conduct market research: Analyse recent sales of comparable properties in the area to get a baseline for post-renovation values.
  • Understand buyer preferences: Tailor your renovations to meet the demands and preferences of the target market to maximise the property’s appeal.

2. Calculating Renovation Costs

A detailed and realistic budget for renovation costs is crucial for fix and flip valuation. Underestimating these costs can erode profits, while overestimating can deter you from pursuing potentially profitable projects.

  • Get multiple quotes: Obtain quotes from several contractors to ensure competitive pricing for renovation work.
  • Factor in unexpected expenses: Always include a contingency budget for unforeseen costs, typically 10-20% of the total renovation budget.
  • Consider time costs: Account for the holding costs during renovation, such as mortgage payments, utilities, and property taxes.

3. Determining the Optimal Purchase Price

With the ARV and renovation costs estimated, investors can calculate the maximum purchase price to offer for a fixer-upper. This calculation often follows the 70% rule in fix and flip investments, which suggests that investors should not pay more than 70% of the ARV minus renovation costs.

  • Example calculation: If the ARV is estimated at $300,000 and renovation costs are $50,000, the maximum purchase price should be no more than $160,000 ($300,000 * 70% – $50,000) .

Key Considerations in Fixer-Upper Investments

Investing in fixer-uppers for flipping requires a careful balance between the cost of acquisition, renovation expenses, and the potential selling price. Here are additional factors to consider:

  • Location: The value of real estate is heavily influenced by its location. Properties in desirable areas are likely to fetch higher ARVs.
  • Market conditions: Keep an eye on market trends to predict future property values accurately.
  • Renovation scope: Be realistic about the scale of renovations required and your ability to manage the project within budget and timeline constraints.

Valuing a fixer-upper for its flipping potential is a nuanced process that demands a deep understanding of the property market, renovation costs, and buyer preferences. By meticulously estimating the ARV and carefully planning the renovation budget, investors can navigate the fix and flip market with confidence, maximising their chances of a successful and profitable investment.

Comprehensive guide on when investors should get professional property valuations for strategic investment planning

When to Get a Professional Valuation as an Investor

The Importance of Professional Property Valuation for Investors

For investors in the real estate market, obtaining a professional property valuation is not just a formality but a crucial step in various investment processes. Understanding when and why to seek these valuations can significantly impact investment strategies, risk management, and financial planning. This article explores key instances where property valuations for investors become essential.

Professional Valuation for Financing Purposes

One of the primary reasons investors seek professional property valuations is for financing. Whether it’s for acquiring a new property, refinancing existing loans, or securing additional funding, lenders often require an up-to-date valuation.

Loan-to-Value Ratio Calculation

Lenders use property valuations to determine the Loan-to-Value Ratio (LVR), which influences the terms and conditions of the loan, including interest rates and loan amount.

Refinancing and Equity Release

Professional valuations are also vital for investors looking to refinance their loans or release equity from their existing properties. An accurate valuation ensures optimal refinancing terms and maximises the equity available for withdrawal.

Valuation for Insurance Purposes

Property insurance is another critical area where professional valuations hold significant value. Accurate property valuation ensures appropriate insurance coverage, protecting investors from being underinsured or overpaying premiums.

Determining Replacement Costs

A key aspect of insurance valuations is assessing the property’s replacement cost, including costs associated with rebuilding and professional fees, in case of total loss.

Due Diligence in Property Investment

Conducting due diligence is a cornerstone of successful property investment. Professional property valuations are integral to this process, offering investors a clear picture of the property’s market value and potential.

  • Market Analysis: Valuations provide an in-depth market analysis, helping investors understand current trends and potential growth.
  • Risk Assessment: A professional valuation helps in identifying risks associated with the property, including market volatility and property-specific issues.

Property Valuations for Tax Purposes

For tax purposes, whether it’s for capital gains tax, property tax, or depreciation schedules, accurate valuations are essential. They ensure compliance with tax regulations and can lead to significant savings.

Capital Gains Tax Calculations

When selling a property, investors need to know its initial and final values to accurately calculate capital gains tax obligations.

Depreciation Schedules

Professional valuations also assist in preparing depreciation schedules for investment properties, maximising tax deductions related to property depreciation.

Aerial view of Australian residential suburb

Australian House Price Factors

6 Factors That Impact House Prices

  1. Location
  2. Land Size
  3. Condition of the Property
  4. Market Conditions
  5. Age and Historical Value
  6. Extra Features

The property market can often feel like a rollercoaster ride, with house prices rising and falling based on a myriad of factors. Whether you’re looking to buy, sell or simply understand the value of your current home, knowing the key determinants of house prices is crucial. Here, we break down six primary factors that impact house prices in Australia observed by Melbourne realty agents.

1. Location

Arguably the most commonly cited factor, location profoundly impacts house prices.

Proximity to Amenities

Properties closer to the city centre, public transport hubs, schools, and shopping areas often command higher prices due to their convenience and desirability.

Neighbourhood Reputation

Areas renowned for safety, cleanliness, and community vibes can significantly up the price tag on homes.

2. Land Size

Homeowner inspecting property condition

The saying “they’re not making any more land” rings especially true in the property market. The size of the land can directly impact house prices, with larger blocks often fetching higher prices, especially in urban areas where space is at a premium.

3. Condition of the Property

The state of the house itself plays a pivotal role in its valuation.

Maintenance and Upkeep

Homes that have been well-maintained, with recent renovations or updates, typically have a higher market value.

Structural Issues

Conversely, properties with structural problems, outdated interiors, or requiring significant repairs can see a dip in their prices.

4. Market Conditions

Modern Australian home exterior

The broader economic environment and housing market trends can sway house prices.

  • Supply and Demand: When more people are looking to buy than sell, prices tend to rise, and vice versa.
  • Interest Rates: Lower interest rates can increase borrowing capacity, often pushing up property prices.
  • Economic Factors: Employment rates, economic growth, and consumer confidence can all influence house prices.

5. Age and Historical Value

Historic Australian home with unique architecture

Older homes, especially those with historical significance or unique architectural features, can command higher prices. However, very old properties without modern updates or with potential structural issues might face price reductions.

6. Extra Features

Lush backyard with swimming pool and landscaping

Additional features can add substantial value to a property. Swimming pools, extensive landscaping, solar panels, or smart home integrations can all positively impact house prices, depending on the preferences of potential buyers and the local market demand.

Understanding the Factors that Shape the Market

While these six factors are among the most influential in determining property prices, it’s essential to remember that the market is fluid. Trends shift, and what’s deemed valuable now might change in the future. However, by understanding the fundamental factors that impact house prices, you’ll be better equipped to make informed decisions in the property world.

Map of Sydney property value growth by region over the past 10 years Drop Commands to Import To export commands, pick them in command explorer and click Export

Sydney Property Value Trends Over the Past Decade

Sydney’s property market has seen significant growth and fluctuation over the past 10 years. While some areas have skyrocketed in value, others have remained relatively stable or even declined. Understanding Sydney property value trends by area can help buyers and investors make informed decisions. We’ve enlisted help from certified Sydney property valuers to gather the most up-to-date information.

Inner City Suburbs See Strong Growth

Suburbs within 5-10km of the CBD like Surry Hills, Redfern, and Waterloo have seen enormous growth in property values over the past decade.

Redfern’s median house price has risen from $750,000 in 2012 to over $1.5 million in 2022 – a 100% increase. Terrace houses that sold for $900,000 in 2013 are now fetching over $1.8 million. This rapid growth has been fuelled by Redfern’s transformation into a trendy inner-city hub, attractivity for young professionals, and its proximity to the Sydney CBD.

Surry Hills has seen similarly dramatic growth, with its median unit price rising from $562,000 in 2012 to $980,000 in 2022. ten tears ago, buyers could still find apartments in Surry Hills for under $400,000. Today most sell for $800,000+.

Overall, most inner city suburbs within 5km of the Sydney CBD have doubled or even tripled in value over the past 10 years. Their popularity among young professionals and ease of commute has driven huge demand.

Middle Ring Suburbs More Stable

Middle ring suburbs 10-20km from the Sydney CBD like Hornsby, Chatswood, and Parramatta have seen steadier, more sustainable growth over the past decade.

Hornsby’s median house price has risen 65% from $740,000 in 2012 to $1.22 million in 2022. Chatswood units have gone from a median of $470,000 in 2013 to $740,000 in 2022 – a 55% increase over a decade.

These middle ring suburbs remain popular with young families looking for more space and access to amenities like schools, parks and transport. However their growth has been more modest compared to inner city postcodes.

Western Sydney Still Affordable

Sydney’s Greater Western suburbs like Blacktown, Mt Druitt and Penrith remain relatively affordable compared to the Inner West and North Shore.

Blacktown’s median house price is currently $900,000 – up 50% from $600,000 in 2012. Units in Mt Druitt can still be purchased for under $400,000. Penrith has seen steady growth from a 2012 median house price of $387,000 to $630,000 in 2022.

While values have risen, these Western Sydney suburbs continue to offer homeowners and investors relative affordability compared to middle and inner city areas. Their transport links and growing amenities make them increasingly attractive.