Most Australian property "research" falls into one of two categories: qualitative opinion (cafés, lifestyle, vibes) or backward-looking data (what prices did last year). Neither is particularly useful for predicting what a suburb will do over the next three to seven years.
PropTime takes a different approach. Every score is built on 15 measurable indicators of supply and demand dynamics — the forces that actually determine whether prices and rents rise or fall.
Here is exactly what each factor measures, why it matters, and how to read a PropTime score.
The Core Principle: Supply vs Demand
Every factor in the PropTime model measures one thing: whether demand for property in a suburb persistently exceeds supply, or vice versa.
Where demand consistently exceeds supply, prices and rents rise. Where supply exceeds demand, they fall. This sounds simple because it is. The complexity is in identifying the leading indicators — the factors that signal which way the balance is shifting before it shows up in price data.
The 10 Public Indicators
1. Vacancy Rate
What it measures: The percentage of rental properties sitting vacant at any given time.
Why it matters: Vacancy rate is one of the most reliable leading indicators of rental and price pressure. When vacancy is below 1%, tenants are competing for properties — rents rise and property demand from investors increases. When vacancy is above 3%, landlords are competing for tenants — rents stagnate and investor demand weakens.
Strong signal: Below 1% Watch point: Above 2.5%
A vacancy rate of 0.5% (as seen in Perth during 2024-2026) is an extreme signal. It means roughly one in every 200 rental properties is vacant. In practical terms, tenants have almost no negotiating power and rents increase rapidly.
2. Days on Market
What it measures: The median number of days a property sits on the market before selling.
Why it matters: When properties sell fast, buyers are competing. When they sit for months, sellers have the upper hand. Days on market is a real-time measure of buyer demand intensity — it responds to market changes faster than price data.
Strong signal: Under 20 days Watch point: Over 45 days
Suburbs where properties are selling in under two weeks signal buyers who are actively competing and willing to pay asking price or above. This is one of the fastest-moving indicators in the model.
3. Stock on Market
What it measures: The number of properties listed for sale as a percentage of total dwellings.
Why it matters: Low stock means limited choice for buyers, which creates price pressure. High stock means buyers have options and can negotiate, which creates price resistance or discounting.
Strong signal: Under 0.5% Watch point: Over 1.8%
Stock on market is particularly useful for identifying markets that are approaching a turning point. When stock starts rising while other indicators are still positive, it often signals a market that is peaking.
4. Rental Yield
What it measures: Annual rent as a percentage of property value.
Why it matters: Yield determines cashflow. Below 3.5%, most investment properties with a mortgage are costing the owner money every week at current interest rates. Above 5.5%, the property is generating meaningful income relative to its cost.
Strong signal: Above 5.5% Watch point: Below 3.5%
At 4.35% interest rates, yield matters more than it did in the zero-rate environment. Markets with 6%+ yields can produce positive cashflow even at current rates — this is where serious investors are increasingly focused.
5. Vendor Discounting
What it measures: The average percentage difference between a property's initial asking price and its final sale price.
Why it matters: Small discounts mean sellers have leverage — buyers are willing to pay close to asking. Large discounts mean buyers have leverage — sellers are accepting less than they hoped. This is a clean measure of negotiating power in the market.
Strong signal: Under 1% Watch point: Over 3%
Vendor discounting in Perth's strongest suburbs has been running close to zero — properties selling at or above asking price. This is the direct opposite of a market like inner Melbourne, where discounting has been sustained.
6. Rental Growth
What it measures: The year-on-year percentage increase in median weekly rent.
Why it matters: Rising rents improve cashflow, increase property value (for yield-based valuations), and are almost always a precursor to property price growth. It's one of the earliest leading indicators of a market strengthening.
Strong signal: Above 8% annually Watch point: Below 2%
Rental growth has been extraordinary in tight vacancy markets — some regional Queensland suburbs have seen 15-20% annual rental growth over 2023-2026. This kind of growth is unsustainable long-term, but it signals genuine demand that eventually flows through to prices.
7. Price Growth
What it measures: Year-on-year percentage change in median property prices.
Why it matters: Price growth is the most visible performance metric. We assess both the absolute level and whether it's accelerating or decelerating.
Strong signal: 8–15% annually Watch point: Negative or above 20%
Importantly, PropTime treats above-20% price growth as a caution signal, not a positive. Markets that are appreciating that fast are often approaching a peak — the next phase is frequently a correction or consolidation. Sustainable growth is in the 8-12% range.
8. Building Approvals
What it measures: The rate of new residential building approvals in the suburb and surrounding area.
Why it matters: New supply coming onto the market competes with existing properties for tenants and buyers. Where building approvals are flat or declining, existing property owners are protected from supply competition. Where approvals are surging, a supply wave is coming that will pressure rents and prices.
Strong signal: Falling or flat Watch point: Rising sharply (particularly apartment approvals)
This factor is particularly important for apartment markets. Waves of apartment supply have repeatedly compressed yields and prices in inner-city precincts across Melbourne, Brisbane, and Sydney.
9. Population Growth
What it measures: Annual percentage change in the suburb's or region's residential population.
Why it matters: More people means more demand for housing. Population growth is the most reliable long-term demand driver — it creates structural, sustained pressure on supply that supports both rents and prices.
Strong signal: Above 1.5% annually Watch point: Flat or declining
Queensland and Western Australia's strong population growth has been the fundamental driver behind their outperformance. Net interstate migration brings people who need to rent first, then buy — creating sequential demand across the market.
10. Affordability (Price-to-Income Ratio)
What it measures: Median property price as a multiple of median household income.
Why it matters: When prices get too far ahead of incomes, the pool of people who can actually buy a property shrinks. This limits further price growth and creates fragility — any interest rate increase disproportionately affects already-stretched buyers.
Strong signal: Below 6× income Watch point: Above 10× income
Sydney's price-to-income ratio is now above 14×. This is a structural constraint on further price growth — it's not that prices can't go higher, it's that the pool of buyers is shrinking every year. Markets at 5-7× income have room to grow before hitting affordability constraints.
The 5 Proprietary Indicators
In addition to the 10 public indicators above, PropTime incorporates 5 additional signals derived from multiple data sources. Their specific derivation methodology is proprietary.
11. Infrastructure Pipeline
Announced government and private infrastructure investment in the area — transport, health, education, and employment precincts — that has not yet been priced into the market. Infrastructure investment creates durable demand by improving liveability and employment access.
12. Employment Growth
Job advertisement trends indicating economic activity in the suburb's catchment area. Rising employment advertising is a leading indicator of population growth and wage growth, both of which support rental and property demand.
13. Auction Clearance Trend
Market sentiment indicator derived from auction activity. Clearance rates above 70% signal strong buyer competition; below 60% signal hesitancy. The trend direction is as important as the absolute level.
14. Yield Trajectory
Whether rental yields are rising, falling, or flat over a rolling period. Rising yields signal improving cashflow fundamentals. Falling yields (when caused by price appreciation outrunning rent growth) can signal a market getting ahead of itself.
15. Geographic Risk
Climate and natural disaster risk assessment affecting long-term insurability and liveability. Properties in high flood, bushfire, or coastal inundation risk zones face growing insurance costs and potential future demand constraints.
How the Score is Calculated
All 15 indicators are assessed against threshold levels, normalised to a 0-10 scale, and combined using PropTime's proprietary weighting model. The weighting reflects the historical relationship between each factor and 5-year suburb performance across Australian markets.
The composite score runs from 0 to 100:
- 80–100: Strong buy signal. Multiple indicators aligned positively. High confidence.
- 65–79: Good signal. Solid fundamentals with meaningful positives.
- 50–64: Monitor. Mixed signals. Some positives but material risks present.
- 0–49: Avoid. Multiple weak indicators. Capital likely performs better elsewhere.
How to Read a PropTime Score
The score is most useful as a filter and comparison tool, not a binary buy/don't-buy signal.
Use it to:
- Filter markets worth researching — focus your due diligence on the top two quartiles (65+)
- Compare suburbs side-by-side within a state or price range
- Track changes over time — a suburb moving from 58 to 72 over 12 months is a more interesting signal than a suburb sitting at 72 unchanged
A score of 82 doesn't mean you should buy any property in that suburb — it means the structural demand and supply dynamics are strongly aligned. You still need to assess specific properties, building quality, and your own financial position.
Exploring the Scores
All 690 suburbs are available in PropTime's Suburb Intelligence tool. Free accounts access the top 20 scores. Pro accounts can sort, filter, and compare all suburbs by state, strategy, and score.
You can also use the Strategy Selector to re-rank all suburbs by investment goal — cashflow, growth, or balanced — which adjusts the weighting to reflect your specific strategy.
This article provides general information only and does not constitute financial advice. Suburb scores are based on market data and modelled indicators. Always conduct your own due diligence before making investment decisions.