Q: How do we select buying markets?
A: First we select SA3 regions with high or increasing market pressure, which would lead to strong growth in the short to medium term. Based on the SA3 selection, we zoom into the suburb level and select all suburbs that:
- trends all market indicators aligns with its SA3, eg, price trend, days on market trend, inventory trend, vacancy rate trends, etc.
- do not have any due diligence risks (here’s a snapshot of our proprietary 21-point due diligence checklist: Due Diligence), such as natural disaster, noise, land size, public housing %, holding costs, etc.
If the suburb meets all criteria above, we would approve it as a buying market.
The Research, Acquisition, and Strategy divisions work together to conduct a nationwide market pressure review each quarter to make sure we always buy in markets with the right pressure.