Herron Todd White is the largest independent property valuation and advisory group in Australia. Their objective is to provide the highest level of client service with integrity, professionalism and independence.

They provide a comprehensive range of valuation, research and advisory services which are used by financial institutions, solicitors, accountants, property developers and corporations. They cater for all property valuation and consulting requirements, from individual residential properties to major development projects and corporate and government portfolios.

Each month they release a property clock of all the major property markets in Australia, it is a simple broad brush means to suggest where property markets are – and what direction prices are moving in.

Property Clock HOUSES (May 2016)

Property Clock HOUSES (May 2016)

Property Clock UNITS (May 2016)

Property Clock UNITS (May 2016)

 

Here is a general idea of how each tick works on the clock:

12:00 – The top of the market; The market is under-supplied and prices are increasing.
1:00 – Rental returns are lower
2:00 – There is a surplus of properties for sale
3:00 – Increasing interest rates; the market is evenly supplied
4:00 – The rate of property sales is declining
5:00 – The rate of construction for new dwellings is declining
6:00 – The bottom of the market as it is oversupplied; prices are declining
7:00 – Rental returns are improving
8:00 – Demands outpace the properties that are available
9:00 – Interest rates are declining; supply is tight.
10:00 – Rate of property sales are improving
11:00 – Construction of new dwellings increases

It’s important to remember that the direction in which assets travel on the clock only partially depends on broad market developments and conditions, there are many local factors that come into play for each Suburb, street and property type.