PointData's unique planning algorithms can translate zoning and planning codes into sub-divided or amalgamated land options. IMAGE supplied
Zoning changes could help ease housing crisis: Source: Pexels
  • PointData’s groundbreaking Micro-market Price Index provides new levels of detail never seen before.
  • The new technology makes it possible to compare neighbourhood submarkets, not just suburbs and postcodes.
  • While values have generally fallen, PointData found 20% of tracked neighbourhoods had increased values.

PointData’s new ‘Micro Market Price Index’ (MPI) represents a first for the Australian residential property market, and a step change in property price indices.

The MPI ‘live’ index was developed to improve accuracy during periods of market volatility, especially in a boom or downturn environment.

George Giannakodakis, CEO and founder of PointData said “While the vast majority of residential property data and trends are reported at a suburb or even local government level, the granularity of PointData’s new price index provides a ground-level view of risk and opportunity, making it possible to directly compare neighbourhood submarkets within a wider metropolitan area.”

Applying PointData’s Micro-market Price Index to Melbourne

3 months growth October to Dec 2022, applying PointData’s Micro-market Price Index. IMAGE supplied
Three months growth October to Dec 2022, applying PointData’s Micro-market Price Index. IMAGE supplied

Properties in Melbourne have fallen an overall 8.6 per cent since their peak. But cities are not homogenous and property prices follow different trends at a neighbourhood level. While Melbourne is witnessing a correction in house prices, 20 per cent of Melbourne’s 10,000 tracked neighbourhoods have been trending up in value over the past three months.

Signs of growth…

Some neighbourhoods are bucking the trend and starting to show signs of positive growth. Several of the more affluent inner Melbourne suburbs, such as Toorak, South Yarra, Richmond, Hawthorn and Albert Park have performed well, as have some suburbs further out from the CBD including Wollert to the north, Donvale (and surrounds) to the east, Keysborough to the south and Keilor to the west. Essendon, Brighton and Caulfield have also performed well.

But even further out the outer western and northern suburbs are showing signs of recovery in positive territory while pockets like Clayton South, Mulgrave, Narre Warren North, Franklin South and even parts of Geelong and Mount Martha are seeing strong growth.

Signs of decline…

While these areas have performed well and there are signs that the property market is starting to stabilise, a majority of Greater Melbourne has still experienced some property value decline.

This decline comes off the back off the well documented COVID property boom correction and has been exacerbated by repeated interest rate rises through 2022 and 2023. While interest rates have increased yet again, the corresponding decline in property values may represent an opportunity for potential buyers.

George Giannakodakis said, “There is still a concern that the property market may decline in value due to the recent RBA interest rate announcement. PointData’s view is that this will lead to a slower recovery rather than an acceleration in price falls.”

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