Home' API Magazine : September 2014 Contents 106
API SEPTEMBER 2014
SEPTEMBER 2014 API
GETTING STARTED How to use and understand API Databank statistics.
The City Stats page features auction clear-
ance rates, capital city medians and rental
yields, and a snapshot of recent property
transactions in Australia’s biggest cities.
It can be used as a guide to the health of
Australia’s major property markets. The
tables include information about how long
it’s taking to sell properties, how much
they’re being discounted from the original
asking price, and what proportion of
auctions are being completed successfully.
The data is sourced from Australian
Property Monitors and RP Data. More
detailed information about this data can
be found in the “About these figures”
sections on page 107.
STOCK ON MARKET
API’s Stock On Market data, sourced from
SQM Research, reflects how many houses
and units are listed for sale in postcodes
around the country. The amount of stock
on the market provides a snapshot of the
health of local property markets.
Given the same level of demand, a
shortage of stock on the market is likely
to lead to price growth, whereas an over-
supply of stock is likely to slow growth.
For the purposes of the index, houses are
defined as standalone dwellings with a
land component, including townhouses,
while units are defined as multi-unit
dwellings, including villas and duplexes.
The local vacancy rate is vital informa-
tion for investors, as it reflects the level
of supply and demand in the rental
market, thereby providing a guide to how
difficult it might be to find tenants to
fill an investment property. A vacancy
rate around three per cent is generally
considered to be in balance between
supply and demand. API’s Vacancy Rates
data is sourced from SQM Research; its
index is based on a history of online real
estate rental listings, taking into account
new rental listings and listings withdrawn
over the period of each calendar month.
Note, as of the September 2012 issue of
API, SQM Research has revised the way
it calculates established rental dwellings
based on new research from the Australian
Bureau of Statistics 2011 Census Data.
Data is presented by postcode.
HOME LOAN TABLES
API’s Home Loan Tables, sourced from
Canstar, provide a guide to some of the
loan products available for homebuyers
and investors. The tables include
information to help borrowers choose a
loan, including the interest rate, upfront
fees, ongoing fees, the comparison rate
and what loan types are available. The
Mortgage Rates Yield Curve provides a
visual snapshot of the highest, lowest
and average rates on various products, so
borrowers can see whether a particular
loan offers a competitive rate, and how
much they might be able to save by
The Market Indicators section, provided
by property advisers Herron Todd White,
provides a comparative analysis of the
state of property markets in Australia’s
capital and major regional cities using
financing risk-rating scales. It’s worth
noting that items on the scales are
ordered according to the risk they pose
to property investors, as opposed to
the order in which they would occur in
a typical property cycle. Indicators for
the house and unit markets are provided
every month, while retail, office and
industrial information is provided on a
rotating basis every three months.
Market Watch is a comprehensive set of sales, price and rental data for suburbs
around Australia, from Australian Property Monitors.
Number sold: The number of properties sold in the listed suburb during the given
Median price: The median price is the middle price in a series of sales. For example,
if 15 sales are recorded in a suburb and arranged in order from lowest to highest
value, the eighth price in the list is the median price. (Not to be confused with the
Quarterly growth: This is a rolling percentage difference between the median price
for the stated 12-month period and the median price for the equivalent period three
months prior, e.g . the percentage difference between the median for 12 months to
April 2014 and the median for 12 months to January 2014.
12-month growth: The percentage difference between the median price for the
stated 12-month period and the median price for the equivalent period immediately
10-year growth per annum: The average annual growth in median property prices
over the past 10 years (eight years for Tasmanian suburbs, as that’s the oldest data
available). The previous two columns look at the three-year and five-year figures.
Median advertised weekly rent: The mid-point of all advertised rents in the given
suburb during the stated 12-month timeframe.
Gross rental yield: Rental yields are calculated by multiplying the median rent by 52
(for weeks per year), dividing that figure by the median price and then multiplying
the result by 100 to create a percentage. These yields are before tax and other
Average days on market: A measure of the average number of days it takes to sell a
property by private treaty once it’s been advertised.
Suburbs that have had fewer than 10 sales in the given period aren’t included in
the dataset. Units include studios and duplexes; houses include terraces, semis and
Home Loan Tables
Stock On Market
DATABANK // GETTING STARTED
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