Understanding Australian Property Data: A Buyer's Complete Guide
Median prices, clearance rates, days-on-market, vacancy rates — property data can be overwhelming. Here's what each metric actually means and how to use it in your suburb decision.
Property market charts and data
Why Property Data Confuses Buyers
The Australian property market generates enormous amounts of data. Major portals like realestate.com.au and Domain.com.au publish dozens of metrics per suburb. Research firms like CoreLogic and SQM Research add further layers. Here's what each key metric actually means.
Median Price: The Foundation
The median price is the middle value of all sales in a suburb over a period (typically 12 months). It's more useful than the average because it's less distorted by outlier sales. But beware: a suburb's median can shift significantly if the composition of sales changes (more apartments sold this year vs last year, for example). Always ask what's included in the median when comparing periods.
Days on Market: The Supply Signal
Days-on-market (DOM) measures how long properties sit on the market before selling. Falling DOM means demand is outpacing supply — a bullish signal. Rising DOM means supply is building or demand is softening. The CoreLogic and REA Group suburb profiles both publish this metric. A DOM below 30 days is typically a tight market; above 60 days signals buyer leverage.
Auction Clearance Rate: The Demand Indicator
In auction-heavy markets like Sydney and Melbourne, the clearance rate (percentage of properties selling at or before auction) is a leading indicator of market direction. Above 70% signals strong demand; below 60% indicates softening. REIV and Domain both publish weekly clearance data. This is a short-term tactical indicator — useful for timing rather than suburb selection.
Rental Vacancy Rate: The Investment Signal
SQM Research publishes monthly rental vacancy rates by suburb. Below 2% is a landlord's market (low vacancy, upward rent pressure); above 3% gives tenants negotiating power. For investors, vacancy rate is more important than headline yield — a high-yield property in a high-vacancy suburb is often a yield trap.
Vendor Discounting: The Negotiation Tool
Vendor discount measures the percentage difference between listing price and sale price. High vendor discounting (above 5%) in a suburb means sellers are overpricing and buyers have negotiating power. CoreLogic publishes this data by suburb. It's the most useful tactical metric for setting offer prices.
