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Property Price Guide Terminology

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Whether you are just starting out in property investment, or are a seasoned expert, the language and terminology used can be confusing.  

Here we break down some of the most regularly used terms to help you on your search.  

Median Price ($'000)

This is calculated by compiling all the property sale prices in one suburb for the past 12 months and then taking the middle figure.

This is a useful tool to detect changes in the market and can help you gauge potential capital growth in a particular suburb.

Download a free pack of suburb reports here which gives you suburbs with the the highest growth rates and yields.

3-Month Growth (%)

The percentage change in median price over the last three months. This is a good short-term indicator of what property prices in a particular suburb are currently doing.  

12-Month Growth (%)

The percentage change in the median price over the last 12 months and how the market has moved over the medium term.

Anything over 10% - 15% would generally represent a very strong performance in a particular suburb.

Average Annual Growth 

The percentage change in the median price over the last 10 years usually expressed as a per-annum figure.

This helps identify the short-term peaks and troughs in the market, giving a good measure of long term market performance.

Anything over 7.5% would indicate a very strong growth.

3-Yr Growth (%)

The total percentage change in the median price in the past three years. Anything over 20 - 25% indicates an exceptionally strong growth.

5-Yr Growth (5%)

The total percentage in the median price for the past 5 years. 40% and above represents very strong growth.

Weekly Median Advertised Rent ($)

The median weekly asking rent for listed properties over the last 12 months.

This is expressed as a dollar figure and it is the best way to compare rental income in different suburbs. 

Gross Rental Yield (%)

Estimated rental income, by multiplying the rental income by 52 weeks then dividing by the median price.

Note: Rental yield will rise when median price falls, increasing rental yields are not always good.

Vendor Discount/Premium Above Asking Price (%)

The average difference between the initial asking price and final selling price. A negative figure denotes a discount and a positive figure shows a premium (expect to pay more).

Learn some tips to help you secure your next property at a discount here.

Average Hold Period 

The time period (years) of which home owners hold on to their properties before selling.

Over 10 years indicate a tightly held suburb, indicating a low stock market.

Below 5 years indicates a rapid turnover. 

Number Sold 

The total number of houses/units sold in the suburb over the last 12 months - this number can also be influenced by the number of dwellings in the suburb.

This information should be used in conjunction with other statistics to get a better picture of how active the suburb's market is. 

Days on Market 

The average amount of days a property stays on the market before it is sold.

A lower number indicates properties are highly sought after and quickly purcahsed by buyers.

Properties buyers will typically look for homes that have been on the market for less than 3 months, as over this period of time properties could be unsuitably priced or have undesirable offerings. 


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