Proptrends involves an in-depth study of the economic and demographic factors that influence real estate market trends. These factors include the financial landscape, including interest rates and inflation; local amenities, infrastructure developments and community demographics. It also includes the regulatory environment, which could impact development and redevelopment opportunities. Investing in property is often a long-term endeavour, so the more you understand the macro-level trends, the better placed you’ll be to predict future demand. For example, changing demographic cohorts — such as Baby Boomers retiring and Millennials entering the workforce — can dramatically alter property requirements. Knowing this, it makes sense to diversify your investment portfolio with property that aligns with these changes.

Mastering Property Research: A Comprehensive Guide

Once you’ve done your macro-level market research, it’s time to focus on the micro-level and look at each suburb or government area individually. This step is crucial, as it’s where you can uncover the most opportunities for short-term cash flow and long-term capital growth. This research should include a close look at the local amenities, infrastructure upgrades, community demographics, and population trends, as well as a review of the suburb’s performance indicators (e.g. days on the market, rental yields). Another important aspect of this research is to verify that you’re not missing any key pieces of information. It’s easy to get tunnel vision and only seek out data that supports your initial hypothesis, but ignoring contradictory information can lead to serious investment mistakes. This is why it’s a good idea to get out and physically visit the properties you’re interested in, not only so you can see for yourself but also take the time to talk with locals to gain a broader understanding of the region.