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WHAT REALLY DRIVES THE PROPERTY MARKET?
You do not have to be a property expert or a global economics professor to understand some fundamental property market drivers. All you need is a little awareness.
Have you ever taken the time to think about what really drives the property market?
Below is a brief snapshot outlining some of the key driving influences:
- Supply and demand.
- Interest rates.
- Reserve Bank decisions.
- Media and the news.
- Property listings and sales figures.
- Demographic changes.
- Stock market.
- Global economics.
- General market confidence, and
- Sometimes, it is our perception that drives the rise and fall of the property market.
Yes, there are real influencing factors (as mentioned); however, when making investment decisions, make sure you base it on facts, not what you feel from the media and news.
Confidence in anything, or a lack of it, can be a powerful influence on someone's future success.
When looking to buy or sell a property, the most important aspect to monitor and research is factual data (that can easily be obtained online from reputable sources) such as:
- Median prices for houses and units.
- Growth in values for houses and units listed for sale.
- The number of property listings and comparisons to previous periods.
- Average sales for houses and units.
- Average ‘sold’ values and fluctuations to previous periods.
- Rental prices and vacancy rates.
- Average days on the market before renting or selling.
- Planning applications in the area.
- Local amenities.
- Auction clearance rates