The Australian Bureau of Statistics recently noted that the residential real estate market is worth approximately $8 trillion.
The real estate market, like most of the economy, is seeing a digital revolution. The information available to vendors and buyers has increased in quantity and fallen in price.
The absolute number of online data curators has continued to grow, as property prices have surged from the blip that was the global financial crisis. The latest such vendor is Residz.
Ian Haynes, founder and CEO at Residz, is a veteran of geospatial data applications. Haynes told Which-50.com that his goal is “To offer the Australian property market, a cost effective data portal that removes the barriers between category silos.”
“Buyers want want to see a property’s complete ownership proposition. We want to show everything that characterises a property, be that local school rating, bush fire susceptibility, subsidence risk, crime, traffic, and coming soon tradesmen servicing the area. Of course Residz offers complete price data for the entire country,” said Haynes.
Residz says that competitor’s offerings cost approximately $300 against their $10 complete report. In addition, the company says that they have some unique features that will help sellers and buyers.
Real estate traders can register a “dream price” on Residz to let the market know they’re an off-market seller. “Say you’ve seen a property recently sell in a street nearby you, and you think that you’d actually consider selling if the price was ‘X’ per cent higher.You just register that and our users and agents will be able to make a decision if they’d like to speak with you,” says Haynes.
Another helpful tool is the heat maps; these allow you to see what markets are hot and quickly locate where price action is available.
Auction data, key to transparency
The Australian market remains unique in its reliance on auctions to set prices. While many have complained that the system has been open to abuse over the years because of phantom bidders, that is less true today. As States and Territories have enhanced legislation and regulations around the market, the quality and transparency of the data have improved sharply.
According to CoreLogic head of research, Eliza Owen, the recent property price surge “Puts Australian residential property at around four times the size of Australian GDP, and around $1 trillion more than the combined value of the ASX, superannuation and commercial real estate stock.”
The time it takes to sell a property across Australia reduced substantially in the three months to June this year compared with the same period last year. Median days on the market has fallen from 49 days nationally to 29 days.
For the week ending 4th of July, the four-week average clearance rate across the capital cities was 73.8%, well above the decade average of 63.5%.
Incoming data from the auction results of the weekend 10 – 11 July show things are not abating yet.
New South Wales real estate market remains red hot. The weekend clearance rate was a healthy 86 per cent for the 324 recorded auctions.
Ultra-low interest rates are driving similar results around the country; 79 per cent in Victoria,70 per cent in Queensland, while hardly disappointing, 89 per cent in South Australia and 70 per cent in West Australia.
Meanwhile, the Reserve Bank of Australia last week indicated that headline interests rates would remain unchanged into 2023. The only nod to accelerating GDP growth was to modestly scale back weekly bond repurchases from $5 billion to $4 billion. While monetary policy remains loose market professionals say that only constraint will be via affordability.