- Duo have released their first joint report
- Reveals Domain Buyer Demand Indicator can predict future property settlement activity
- All part of Domain's strategy to extend its business beyond the core listings model
PEXA and Domain have today announced a strategic collaboration that they say will bring together their data assets to unveil unique insights across the property market.
The two companies have conceived their first research report which explores whether changes in buyer demand convert into changes across property settlement volumes throughout New South Wales and Victoria.
The report’s key finding is that the Domain Buyer Demand Indicator – used to track weekly demand for both houses and units nationally – can be used as a way to predict settlement property activity.
Domain CEO Jason Pellegrino said the collaboration will unlock unique and powerful insights into the market benefitting all those who have a direct or indirect interest in property.
“The health of Australia’s property market is a topic that generates immense interest to a wide range of Australians,” he said.
“Many of the current indices such as auction clearance rates, have significant limitations and are largely directional indicators.
“There has long been an assumption that buyer search activity is correlated with actual property settlements and for the first time, Domain and PEXA can not only validate this correlation, but also establish an accurate leading indicator of housing activity.”
Jason Pellegrino, Domain CEO
According to PEXA Group Chief Executive Officer, Glenn King, 80% of all property transfers settlements in Australia are handled on the PEXA platform, emphasising the strength and timely nature of the data collected.
“PEXA Insights has already published over 200 individual research reports to date and has established a team to build out our unique data platform,” said Mr King.
“Working with partners like Domain, who share our belief in unlocking the value of property industry data, we are confident of creating valuable data insight products and services for our customers”.
Glenn King, PEXA Group CEO
Based on the data, in New South Wales a rise in the Domain BDI will correlate with a rise in settlements 8 weeks later. In Victoria, a rise in the Indicator will cause settlements to rise in 11 weeks.
Mr Pellegrino said the PEXA collaboration is part of Domain’s ‘marketplace’ strategy to extend its business beyond its core listings model to service more customer groups throughout the property cycle.
“We continue to invest to set the foundations in place to advance our ‘property data solutions’ offering, building on the assets of APM and Pricefinder.
“This represents a significant market opportunity given the unique data and tailored product solutions that we could provide to a wider range of organisations.”
