Property Values Property Investing Must Read

What Time is it on The Property Clock?

Sep 12, 2022

The property clock is a method to 'tell the time' on the residential property market all around Australia. This is a very useful gauge of the property market for Buyers and Sellers across each State and Region.

Timing the market is not always easy and if you get it wrong it can cost you tens of thousands or more! This basic but effect tool should always be considered when making important decisions when you buy and, or sell residential property.

The Property Clock is divided into 4 main sections:

12 o'Clock = Peak of Market
3 o'Clock = Declining Market
6 o'Clock = Bottom of Market
9 o'Clock = Rising Market

Here is a general idea of how each tick works on the clock, courtesy of Grant Muddle from Property Investor Magazine:

12:00— The top of the market, Prices are increasing, the market is undersupplied
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, prices are declining; the market is oversupplied
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 increase

Property Clock - August 2022 [Houses]

Property Clock - August 2022 [Units]

source: Herron Todd White - August 2022

Summary

The property market moves in cycles. Knowing where the property market is heading in the regions you are investing in is imperative as part of your overall plan and decision making process.

There are always opportunities, they may just not be in your suburb. Australia is a big country and in one region there will be an upswing while somewhere else there will be a downturn.

It's always good to know where the action is before it hits and taking advantage of buying opportunities, locking in your equity and potential selling opportunities to rebalance your portfolio if that's required.

Finance is key to property investment. Now could be the right time to lock in your equity and set yourself up to take advantage of a new opportunity.