Methodology

How PropTime scores suburbs

The PropTime score is built on 10 publicly sourced demand and supply indicators, combined with 5 proprietary signals derived from infrastructure, employment, and risk data. We are fully transparent about what we measure and what each factor means. The specific combination and weighting of these factors is proprietary — that's our edge, and it's what makes the score genuinely predictive rather than just descriptive.

We do not take commissions from developers, agents, or anyone with a financial interest in any suburb we score. PropTime is independent. The score reflects only what the data says.

The core principle: demand vs supply

Every factor in the PropTime model measures one thing — whether demand for property in a suburb exceeds supply, or vice versa. Where demand persistently exceeds supply, prices and rents rise. Where supply exceeds demand, they fall.

This sounds simple because it is. Most property "research" drowns investors in noise — proximity to cafés, school catchments, suburb vibes. PropTime strips all of that away and measures only the structural forces that actually determine whether a suburb performs over a 3-7 year hold period.

The 10 core indicators

Each of these is independently sourced from publicly available Australian property data. We assess both the current level and the trend direction — a metric moving in the right direction carries more weight than one that is static.

Vacancy rate

Lower is better · Measured in %

How many rental properties are sitting empty. Lower means stronger tenant demand and less risk of your property sitting vacant.

STRONG SIGNAL
Under 1%
WATCH POINT
Over 2.5%

Tight vacancy means tenants are competing for properties. That protects your yield and signals future price pressure.

Days on market

Lower is better · Measured in days

How quickly properties are selling. Fast turnover means buyers are competing — a reliable signal of demand exceeding supply.

STRONG SIGNAL
Under 20 days
WATCH POINT
Over 45 days

When properties sell fast, buyers outnumber sellers. Fast DOM is one of the most reliable signals of a hot market.

Stock on market

Lower is better · Measured in %

Proportion of total dwellings currently listed for sale. Low stock means sellers have leverage and prices are likely to hold or rise.

STRONG SIGNAL
Under 0.5%
WATCH POINT
Over 1.8%

Low stock means fewer choices for buyers, which pushes prices up. High stock means sellers are competing and discounting.

Rental yield

Higher is better · Measured in %

Annual rent as a percentage of purchase price. Higher yield improves cashflow and provides a buffer against vacancies or rate rises.

STRONG SIGNAL
Above 5.5%
WATCH POINT
Below 3.5%

Higher yield means the property pays for more of its own costs. Below 3.5% in most scenarios means the property costs you money every week.

Vendor discounting

Lower is better · Measured in %

How much below asking price properties actually sell for. Low discounting means sellers have the upper hand — a strong demand signal.

STRONG SIGNAL
Under 1%
WATCH POINT
Over 3%

Small discounts mean sellers have leverage. Large discounts mean the market is slow and buyers have the upper hand.

Rental growth

Higher is better · Measured in %

How much rents have grown over the past 12 months. Strong rental growth typically leads price growth by 6-12 months.

STRONG SIGNAL
Above 8% annually
WATCH POINT
Below 2%

Rising rents improve your cashflow and almost always precede property price growth. It's one of the earliest leading indicators.

Price growth

Higher is better · Measured in %

Capital appreciation over the past 12 months. A key indicator of momentum, but assessed alongside sustainability metrics.

STRONG SIGNAL
8-15% annually
WATCH POINT
Negative or above 20%

Steady double-digit growth is sustainable. Above 20% often signals a market approaching its peak. Negative growth signals structural problems.

Building approvals

Lower is better · Measured in %

Change in new dwelling approvals. Falling approvals mean future supply is constrained, which supports price growth.

STRONG SIGNAL
Falling or flat
WATCH POINT
Rising sharply

New supply coming onto the market competes with your property for tenants and buyers. Less new supply means your property holds value better.

Population growth

Higher is better · Measured in %

Annual population increase in the area. Sustained population growth is the most reliable long-term driver of property demand.

STRONG SIGNAL
Above 1.5% annually
WATCH POINT
Flat or declining

More people means more demand for housing. Population growth is the most reliable long-term demand driver.

Price-to-income ratio

Lower is better · Measured in x

Median property price divided by median household income. Lower ratios mean more people can afford to buy, supporting the buyer pool.

STRONG SIGNAL
Below 6x income
WATCH POINT
Above 10x income

When prices get too far ahead of incomes, the pool of people who can buy shrinks. That limits further growth and creates fragility.

5 additional proprietary indicators

Beyond the 10 core factors above, the PropTime model incorporates 5 additional signals derived from infrastructure pipeline data, employment advertising trends, auction market dynamics, rental yield trajectory, and climate and geographic risk. These factors are computed from multiple data sources and their derivation methodology is proprietary.

🏗️
Infrastructure pipeline
Announced government and private infrastructure investment in the area.
💼
Employment growth
Job advertisement trends indicating economic activity and migration drivers.
🔨
Auction clearance trend
Market sentiment indicator from auction activity in the area.
📈
Yield trajectory
Whether rental yields are rising, falling, or flat over a rolling period.
🌊
Geographic risk
Climate and natural disaster risk assessment affecting long-term insurability.

The composite score

All 15 indicators are combined into a single composite score from 0 to 100. Each indicator is assessed against its threshold levels, normalised to a 0-10 scale, and combined according to PropTime's proprietary weighting model. The weighting reflects the historical predictive relationship between each factor and 5-year suburb performance across Australian markets.

80–100
Strong buy — multiple indicators aligned positively. High confidence opportunity.
65–79
Good signal — solid fundamentals with some positive indicators. Worth researching further.
50–64
Monitor — mixed signals. Some positives but material risk factors present. Needs more due diligence.
0–49
Avoid — multiple weak indicators. Capital would likely perform better deployed elsewhere.

Our independence commitment

PropTime receives no commissions, referral fees, or payments from real estate agents, developers, or vendors in any suburb we score.
No suburb can pay to improve its score. The score reflects only publicly available data and our proprietary analysis.
We do not sell advertising to property companies. Our only revenue is from subscriber access.
PropTime is not affiliated with any real estate portal, agency group, or property developer.
Important: PropTime scores are market education and research tools. They are not personal financial advice, and they do not constitute a recommendation to buy or sell any specific property. Past suburb performance does not guarantee future results. Always consult a licensed financial adviser and conduct your own due diligence before making any investment decision.
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