In order to grow your property portfolio quickly, you want to get into the markets that are about to surge in value, to ride the upswing and the resulting growth. Understanding the factors that trigger price growth helps ensure you pick a winning investment at the right time. So here’s what you should watch out for.
If demand exceeds supply, buyers will quickly snap up available property, so the amount of time a property spends on the market drops, resulting in low average days on the market. If demand is on the rise, vendors are no longer compelled to offer discounts to attract buyers.
Real estate agencies will often sell properties by auction when the demand for property is strong. This allows potential buyers to outbid each other and push prices up for the seller.
A low vacancy rate means there is a shortage of rental accommodation for the number of tenants in the market. When the vacancy rate starts to fall, this often results in higher rents and an increase in prices as investors move in to take advantage of higher returns.
A low number of available properties up for grabs in an area means that owners are not willing to offload their properties and anything that comes online is quickly snapped up by buyers. If there are a large number of people searching for property in a location where there is not much property for sale, this could indicate strong demand and could be a sign that values are about to rise.
When a suburb has underperformed for an extended period, while markets around it are starting to rise, it might mean that the suburb is about to see a turnaround as well. Generally, the longer the market has underperformed, the quicker the recovery is going to be when it comes, but when assessing a suburb, make sure you look at this data in combination with the other stats to get the full picture.