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Oct 21, 2024 BY propertyanalyticsadmin

Investing in Melbourne? Here’s Why Housing Market Analysis & Research is so Important

Investment in Melbourne housing Market

When it comes to making an investment count, there are many factors at play. One of the most undervalued yet underrated aspects of the entire process is, without a doubt, market analysis. 

If the ever-changing Melbourne housing market, you should never underestimate the power of thorough market analysis and research. Whether you’re a first-time buyer or a seasoned developer, understanding the data and how it affects the market is key to achieving a profitable final result.

At Property Analytics, we’ve applied data-driven insights that drive success for more than 15 years. In this article, we’ll touch on why market analysis is important and how we use it to help investors just like you!

Why Market Research and Property Investment Go Hand-in-Hand

So, why is market research such a game-changer for property investors? It’s all about getting the right information. In Melbourne, property prices vary dramatically, not just from suburb to suburb but from street to street. That’s why relying on general market trends isn’t always enough. In order to get the best result, you need specific, relevant data that applies to the types of properties you’re interested in.

At Property Analytics, we take a close look at factors such as comparable sales, local amenities, and future growth potential. We dig into details like:

  • What have similar properties sold for recently?
  • What’s the long-term outlook for the area?
  • Are there any upcoming infrastructure projects that could boost property values?

By compiling and making sense of this data, we help each client to make informed decisions that perfectly align with their personal investment goals, timeline, and strategy.Check out a recent case study to see how our market research could help you!

How Market Research Fuels Property Development

As is the case for any investor, developers need to develop a clear understanding of the market especially when it comes to identifying value-add opportunities. That’s where our comprehensive market analysis comes into play. We assess each opportunity’s potential by looking at various aspects, including land size, zoning regulations, and the condition of any existing structures.

Imagine you’ve got your eye on a block that seems perfect for development. With our in-depth analysis, you can get a clearer picture of key questions like:

  • Is it possible to subdivide the land?
  • What type of development is most profitable?
  • What are the local zoning laws and regulations?

Having this information allows developers to plan projects that match evolving market demands and maximise profitability. For instance, we confirmed strong profit potential for a future townhouse development for one of our clients, aligning perfectly with their strategy of holding the property long-term before building.

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What Market Research Means to Property Analytics

At Property Analytics, we are data driven in everything that we do. For us, market research is more than just numbers and statistics; it’s about understanding the unique stories behind every property, getting a good gauge of its value, and evaluating its long-term potential. This also means diving deep into market trends, examining local demographics, and keeping a pulse on the latest economic developments. 

We leverage advanced analytical tools and methodologies to gather data that paints a complete picture of the market landscape. This includes everything from recent sales data and property valuations to zoning laws and future development plans. 

Our commitment to thorough research empowers us to identify opportunities that others might overlook, ultimately giving our clients access to opportunities that represent excellent ongoing value.

Our Unique Approach to Data-Driven Buyer Advocacy

Our unique approach to data-driven buyer advocacy sets us apart from the competition. At Property Analytics, we believe that informed buyers are successful buyers. Here’s how it works:

  1. Strategy Alignment: We start by understanding your goals. Are you looking for immediate returns, or are you focused on long-term capital growth?
  2. Shortlisting Properties: Using our proprietary research tools, we narrow down properties that match your investment criteria.
  3. In-Depth Analysis: For each shortlisted property, we conduct a thorough analysis, considering everything from market trends to development feasibility.
  4. Negotiation Expertise: With our finger on the pulse of the market, we negotiate on your behalf, ensuring you get the best possible deal.
  5. Comprehensive Support: We’re with you every step of the way, providing guidance not just on the purchase but also on any future development plans.

Our data-driven approach means that every decision is backed by solid research. We don’t just help you buy properties; we empower you to make informed choices that lead to lasting success.

Need expert assistance with real estate development in Melbourne? Want us to conduct a property feasibility analysis on a Melbourne home, apartment or townhouse? We’re always happy to help!

Analysing Melbourne Property Market Trends

We consistently spot changes in Melbourne property market conditions before anyone else. Whether we’re looking into how ‘Melbourne House Prices Have Doubled 5 Times in 40 Years’ or providing Trend Reports, our job is to analyse the market from all possible angles and explain key trends to industry professionals. 
From Consumer Confidence to Demographics, Infrastructure, Construction Costs and everything in between–we study it all. Get access to our ongoing Market Updates here!

Case Study: Off-Market Bargain with Big Value Add

Harvey is a big earner at the top of his career. He’s accumulating a portfolio of negatively geared investment properties with big capital growth and development potential.

This was the 4th property we bought Harvey in a single calendar year. As a result, the process has been fine-tuned over time, and we know he likes big blocks in residential zones; he’s motivated by the bargain, and any property we suggest needs to come with a comprehensive analysis of market values; he wants safe townhouse projects with strong profitability, but won’t commence them for another 10+ years; and, we are authorised to liaise directly with his mortgage broker and architect to confirm numbers and scope.

An agent brought this off-market to me. The vendor was a young beneficiary from a deceased estate who was nervous about auctions and was open to selling prior to advertising at circa $1.85m.

Housing investment case study by property analytics

I quickly ran some comparative analyses, and touched base with a couple local agents I know and trust. Everything pointed to a value of approximately $2.2m – $2.4m–an absolute bargain buy. What’s more, the feasibility confirmed strong profits for a 3 townhouse development.

I rang Harvey on Friday, told him I had a ripper to inspect on Saturday, and I’d send him all the info afterwards. Through careful negotiation, we secured the property for $1.85m within a few days without competition from other buyers (we were simply too quick to act).

This ranks as one of my best-ever purchases. We’ve built a high level of trust and working efficiency with Harvey and his team, and this paid off big time.

FAQs

Why is Melbourne such a good place for property investment?

Melbourne’s property market has a history of steady growth, driven by strong demand for housing, particularly in high-demand suburbs. With the city’s expanding population and increasing infrastructure developments, there are plenty of opportunities for both investors and developers.

How do you determine whether a property has value-added potential?

We focus on factors like land size, zoning regulations, and the condition of the existing structure. We also assess future development potential, whether that’s through subdividing, renovating, or building additional dwellings. Here’s a great case study that shows this in action!

Contact Us Today
Get Expert Property Advice
Work with trusted real estate analysts and buyer advocates for honest, reliable property advice.

What’s the difference between purchasing off-market and at auction?

Off-market deals, like the one we secured for Harvey, allow you to purchase properties at a lower price because you avoid the competition of an auction. However, they require quick decision-making and trusted relationships with agents to gain access to these opportunities.

Is your approach suitable for first-time developers?

Absolutely! Whether you're experienced or new to property development, our data-driven approach ensures that every decision is backed by solid research. We also offer project management services, guiding you through the entire process from purchase to completion.

Speak to the Property Analytics Team Today

At Property Analytics, we believe the smartest property investors take the time to understand the market and make data-backed decisions. 

If you’re ready to build your portfolio or develop your first property, get in touch with us today. We’ll take the guesswork out of the process so that you can focus on reaping the rewards.

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