How to Know Which Suburb to Invest?

Many buyers rely on past price trends to guide their decisions. However, I want to emphasise that past trends are not always the best indicators of future performance. To make more informed choices, we need to look beyond the past and focus on future demand and supply to understand if the suburb you are intending to purchase a proprty is hot or not.

Locating perfect property among the suburb

So, what should we be looking at?

Simply put, we need to analyse the factors that will shape demand and supply in the future. While this sounds straightforward, the reality is that it involves a lot of analytical work to compare and narrow down the right suburb out of the 15,353 suburbs across Australia!

Let’s start by exploring three key data points:

Auction Clearance Rate: This metric shows what percentage of properties are successfully sold at auction compared to the total properties listed for auction. A higher rate can indicate a strong seller’s market and high demand.

Days on Market (DOM): This is the number of days a property remains listed before being sold. A shorter DOM typically means a hot market with strong demand, while a longer DOM suggests a slower market with fewer buyers.

Rental Yield: This is the annual rental income as a percentage of the property value. The higher the rental yield, the better the return on investment and will likely attract more buyers in the future.

That’s enough for now—I don’t want to overwhelm you with too much information at once. If you want to see the actual comparison in action, see my TikTok video.

I hope this information will help you find the best suburbs to invest.

Contact us for complimentary detail suburb report.