Article Guideline:
This article provides a glossary of key property terms used in the Australian real estate market for InvestorKit's research and analysis. A clear understanding of these terms ensures effective communication within our team and with clients.
These standardised definitions help our team consistently interpret data and write professional reports about Australian property markets.
House
A freestanding/detached house, or a unit block owned with one single title.
Unit
Attached dwelling (apartments, townhouses, etc). There are areas of common ownership in the complex (strata title).
Residential Property
In InvestorKit context, residential usually just means established house.
Commercial Property
In InvestorKit context, commercial includes office, retail, industrial, childcare, medical, etc.
State
Australian States:
ACT = Australian Capital Territory
NSW = New South Wales
NT = Northern Territory
QLD = Queensland
SA = South Australia
TAS = Tasmania
VIC = Victoria
WA = Western Australia
LGA
Local Government Area (Local Councils). There are 566 Local Government Areas covering the whole of Australia, including unincorporated areas, without gaps or overlaps.
Suburb
The smallest geography region in Australian geographies typically used in property markets. Defined by local knowledge and postal boundaries.
ABS Statistical Areas Level 1, 2, 3, 4 (SA1–SA4)
Geographies that the ABS designs specifically for the release and analysis of statistics. This means that the statistical areas are designed to meet the requirements of statistical collections as well as geographic concepts relevant to those statistics. This helps to ensure the confidentiality, accuracy and relevance of ABS data.We use SA3 the most: Statistical Areas Level 3 (SA3s) are designed for the output of regional data and most have populations between 30,000 and 130,000 people.
Greater Capital City Statistical Areas (GCCSA)
Greater Capital City Statistical Areas (GCCSAs) are geographic areas built from Statistical Areas Level 4 (SA4s). GCCSA boundaries represent labour markets and the functional area of Australian capital cities respectively. There are 16 GCCSAs covering the whole of Australia without gaps or overlaps. - Greater Sydney - Rest of New South Wales (NSW) - Greater Melbourne - Rest of Victoria (Vic.) - Greater Brisbane - Rest of Queensland (Qld) - Greater Adelaide- Rest of Souther Australia (SA) - Greater Perth - Rest of Western Australia (WA) - Greater Hobart - Rest of Tasmania (Tas.) - Greater Darwin - Rest of Norther Territory (NT) - Australian Capital Territory (ACT)
Regional Area
The areas outside of greater capital cities; defined as ‘rest of state’ or ‘rest of territory’ under ABS.
Market Pressure
The "pressure" in a market's fundamentals to push prices up or down. Derived from supply-demand imbalances.
High sales market pressure is indicated by: • Short-term (1-y) sale price growth accelerating • Asking price rising • Sale days on market declining ★ • Sale volume growing • Number of listings declining • Inventory going down ★ • Vendor discount going down
High rental market pressure is indicated by: • Short-term (1-y) rent growth accelerating • Vacancy rate low or declining ★
★ = key indicators
Internal Migration
The movement of people across a specified boundary within Australia.
- Data Available At: ABS Data Explorer, updated annually
Overseas Migration
The movement of people between Australia and other countries. Includes arrivals and departures.
- Data Available At: ABS Data Explorer, updated annually
Estimated Resident Population (ERP)
People living in a certain region for at least 12 months. ABS calculates this as an estimate of usual residents.
- Data Available At: ABS, updated annually
Rental Tenure
The percentage of renters or rental properties in a region.
- Data Available At: ABS Census Data
Airport Passenger Movement
The total number of passengers arriving at and departing from airports.
- Data Available At: BITRE Monthly Traffic Data
Housing Finance Commitment
Value of loan commitment on housing, split between investor and owner-occupier.
- Data Available At: ABS Lending Indicators
Online Search Interest (OSI)
Ratio of the number of searches per property listing, as defined by DSR.
Asking Sale Price
The price vendors ask for when listing their properties.
- Data Available At: SQM Free Property Data (no lag)
Median Price
Middle figure of a region's sales (sold) price.
- Data Available At: APM Monthly Dataset (2-month lag)
Sales Volume
The number of sales in a certain period of time.
- Data Available At: APM Monthly Dataset (2-month lag)
Sale Days on Market (SOM)
The number of days a property typically spends on the market before sale.
- Data Available At: APM Monthly Dataset (2-month lag)
For-Sale Listings / Stock on Market
The number of properties listed for sale.
- Data Available At: APM Monthly Dataset (2-month lag)
Inventory
The number of months it would take to sell out current listings at the current monthly absorption rate.
- Data Available At: Calculated based on Listings and Sale Volume from APM
Vendor Discount
The difference between the asking price of a property and its final sale price, expressed as a percentage.
- Data Available At: APM Monthly Dataset - 2 months lag
Vacancy Rate
A measure of how many rental properties in a location are vacant, typically expressed as a percentage.
Vacancy Rate = Number of vacant rental properties / Total number of rental properties
Currently in AU, >2% = high / renters' market, 1-2% = low / healthy market; <1% = extremely low / rental crisis
- Data Available At: APM Monthly Dataset - 2 months lag; SQM Weekly Data
Yield
A measure of how much rental income a property generates relative to its price, usually expressed as a percentage.
- Data Available At: APM Monthly Dataset - 2 months lag; SQM Weekly Data
Asking Rent
The price landlords ask for when listing their rental properties.
- Data Available At: SQM Free Property Data - no lag (on capital cities and major regional centres)
Median Rent
Middle figure of weekly rents in a region.
- Data Available At: APM Monthly Dataset - 2 months lag
Number of Listings for Lease
The number of properties listed for lease in a specific period.
- Data Available At: APM Monthly Dataset - 2 months lag (monthly frequency)
Building Approval (BA)
Building approval (BA), or building certification, refers to the construction activities of the proposed use or development and whether the end result complies with the relevant standards, codes and acts for building and plumbing/water works.
We check the number of building approvals for new dwellings in the past 15 months to determine the level of new/incoming housing supply in a region in the short term.
BA Rate / Incoming Supply Level / Building Approval Level = Number of House BAs in the last 15 months / Total number of houses
High BA Benchmark = Average of the top 25% incoming supply levels
- Data Available At: ABS Data Explorer, updated monthly - approx. 2 months lag
Mortgage Affordability
The difference between a location's housing price and income, often calculated using median prices and household income to indicate affordability.
- Data Available At: Median house price: APM Dataset; Average Income: ABS
Overvalue / Undervalue
- If Mortgage Affordability is positive, we say the area is undervalued.
• If negative, it is overvalued.
- Data Available At: Same as above
Rental Affordability
The difference between a location's weekly rent and average household income. Indicates how affordable it is for tenants.
- Data Available At: Median rent: APM Dataset; Average Income: ABS
Economic Indicator
Data that tell a region's economic performance. Includes employment, wage growth, consumer spending, etc.
- Data Available At: Refer to the Economy section in the data source reference tab
Market Indicator
Data that tell a market's performance. Including listings volume, sale volumes, rental vacancy, and market days.
Media Cycle
Major media's attitudes towards the property market, often reflecting public sentiment. It typically lags behind actual market trends.
- Data Available At: Media Cycle Sheet (not yet updated regularly)
Capital Growth
Growth in market value of a property.
Cashflow
Annual rental income less all holding costs.
- Data Available At: InvestorKit Cashflow Sheet
Mining Boom (in the 2000s – 2010s)
The Mining Boom started in early 2000s as the demand from China for natural resources surged, pushing regional markets in Australia upward.