How to Predict Migration Patterns using Auspost Movers Statistics Data and Snowflake’s Cortex ML functions

How to Predict Migration Patterns using Auspost Movers Statistics Data and Snowflake’s Cortex ML functions

Data consultancy, Data Army taps into the hidden insights of the Australia Post Movers Statistics dataset to forecast the future hotspots in Australia—predicting where people are likely to move next.

By analysing trends in mail redirection requests through the Time Series Forecasting function, we provide valuable insights with precision.

This advanced analysis is a feature of Snowflake Cortex, Snowflake’s comprehensive Artificial Intelligence and Machine Learning service, designed to empower your decisions with data-driven intelligence.

Overview of Data Used

  • The primary dataset is Australia Post’s Movers Statistics currently available from The Proptech Cloud with a limited free trial. Updated monthly, it contains de-identified and aggregated data on moves across Australia based on mail redirection requests for the previous 5 years. For this exercise, we used the data from February 2019 to January 2024. Each entry in the data includes the postcode the household relocated from, the postcode the household relocated to, the month of relocation and the number of the people that relocated.
  • The secondary dataset used is the Geography Boundaries & Insights – Australia, specifically Australian Bureau of Statistics (ABS) 2021 Postcode Boundary Data (ABS_POA_2021_AUST_GDA2020) to conduct geospatial visualisations. This dataset is free from The Proptech Cloud.

Australia Post Movers Statistics Data

This dataset contains five years of de-identified, aggregated information on past moves captured by Australia Post’s Mail Redirection service.

Access Australia Post mail redirect statistics now to help you develop competitive data-driven strategies.

Introduction to Snowflake Functionality & Technology Stack

  • The Snowflake Forecasting Model is part of the Snowflake Cortex ML- Powered Functions. This model uses a Machine Learning algorithm to predict future trends from historical data.
  • SnowPark which is the set of libraries in Snowflake which will allow us to deploy and process the data pipeline using Python
  • Streamlit which is used to visualise the forecasts created using interactive Python apps. This functionality is fully integrated within the Snowflake Platform

Introduction to Snowflake’s Forecasting Model

Snowflake Cortex is a service by Snowflake which offers Machine Learning (ML) and Artificial Intelligence (AI) solutions.

This blog will focus on using the Time-Series Forecasting Model which is part of this service. The ML forecasting model used in this algorithm is Gradient Boosting (GB).

The intuition behind the GB algorithm is that the combination of multiple models that learn and improve on each other will perform better than one model. To implement this approach, the GB algorithm will firstly implement the best possible model on the dataset.

The second model will assess where the first model performs poorly and try to improve on these areas. This process continues and the models continue to learn and iterate on one another until the model iteration process no longer improves the model outcomes and therefore the optimal model combination is found and used for predictions.

The GB algorithm is very popular due to its ability to learn from itself and it performs very strongly in many different ML problems. One of the typical challenges in using the GB model is that it is usually very computationally expensive and time consuming to iterate and find the optimal model. The advantage of using the Snowflake Cortex Machine Learning Powered Forecasting Model is that it is extremely quick to compute on even very large datasets as it leverages Snowflake’s existing highly scalable infrastructure.

Technical How-To Guide

The forecasting model example shown will use Snowpark to create the data pipeline and use Streamlit for the data visualisations.

Step 1: Accessing the data

  1. Go to the link on the listing to access the Australia Post – Movers Statistics Data.
  2. Click the “Access Data Listing on Snowflake Marketplace” button to access the data listing on the Snowflake Marketplace
  3. Click the ‘Get’ button and the top right of the page to access the Australian Post Movers Statistics dataset. This will then redirect to a link to either create a new Snowflake account or sign in if one already exists.
  4. Once your Snowflake account is set up and running , the Australia post Mover Statistics dataset listing is located within Data Products and then Marketplace as shown by the link below:
Snowflake Marketplace screen

5. Click on the Open button to explore the sample data within the Snowflake Environment. This will redirect to a Snowflake worksheet which will show some sample queries.

6. The full product can also be requested from the Marketplace page with the button ‘Request Full Product’ if access to the entire dataset is needed.

Step 2: Setting Up the Example Data

The forecasting model created is a multi-time-series model. The following types of variables were needed to create this:

  • The series variable to create multiple time series forecasting
  • A timestamp column
  • A target column which includes a quantity of interest at each timestamp

The cleaning and transformation of the dataset to prep the data for forecasted was completed by running SQL queries using Snowpark. A sample of this data is shown below:

Snowflake Marketplace - tables
This data is then saved as a view named migration_people_moving_to to use in the forecasting model.

Step 3: Creating the Forecasting Model

Each row in the migration_people_moving_to view corresponds to the three types of columns needed to create a multi-series forecasting model; the postcode (series column), month (timestamp column) and the number of people who moved into the postcode that month (the target column)

The code to create a forecasting model is as follows:

CREATE OR REPLACE SNOWFLAKE.ML.FORECAST forecasting_model_people_to (

INPUT_DATA => SYSTEM$REFERENCE(‘VIEW’, ‘migration_people_moving_to’),

SERIES_COLNAME => ‘to_postcode’,

TIMESTAMP_COLNAME => ‘timestamp_month’,

TARGET_COLNAME => ‘number_of_people_to_postcode’

)

This will create the forecasting model forecasting_model_people_to

Step 4: Calling and Interpreting the Forecasting Model

The model can then be used to forecast for any number of periods in the future. The model will perform better for forecasting periods that are closer training dataset, and are less reliable when it is used to forecast for periods further into the future.

The code used to forecast the number of people moving into a postcode every month for 12 months and save it to a table is shown below.

BEGIN

CALL forecasting_model_people_to!FORECAST(FORECASTING_PERIODS => 12);

LET x := SQLID;

CREATE OR REPLACE TABLE forecast_12periods_move_to AS

SELECT * FROM TABLE(RESULT_SCAN(:x));

END;

An example of the forecasting model output results are shown below.

Snowflake Marketplace - forecasting model output results

The way to interpret the above output would be to say that the number of people forecasted to move into Postcode 5096 (which covers Para Hills, Para Hills West, Gulfview Heights, Adelaide) in April 2024 is approximately 26. The lower bound and upper bound of 12.6 and 38.7 represent the prediction interval. For the April 2024 forecast into Para Hills, the model is 95% confident that the number of people who will move into postcode 5096 in April 2024 is between 12.6 and 38.7. A smaller prediction interval indicates that there is less error in the model and the estimated forecast is more likely to be accurate and vice versa.

The default prediction interval when calling a model in Snowflake is 95%. However, this can be configured when calling the model by adding a prediction interval. The code below shows how to call a model with an 80% prediction interval:

CALL forecasting_model_people_to!FORECAST(FORECASTING_PERIODS => 12, CONFIG_OBJECT => {'prediction_interval': 0.8})

Step 5: Visualising the forecasts using Snowpark and Streamlit

The 12 months results of the forecasting model were then aggregated to produce the total of number people forecasted to move into each postcode across Australia.

The data was then also joined with the Australian Postcode boundaries from the Geography Boundaries & Insights – Australia to allow for geospatial visualisations.

The visualisations were hosted using Streamlit within the Snowflake User Interface.

Streamlit is an open source python library which allows for the creation and sharing of data web applications. Using Streamlit within the Snowflake console allows for the flexibility to securely clean, transform and visualise the data in one place, without the need for any external environments.

Data Visualisation – Greater Melbourne Region

The visualisation shows the postcodes that people are moving to in the Greater Melbourne region.

The green and yellow regions show the places where high numbers of people are forecasted to move into in the next year, while the purple and blue regions show the regions that are forecasted to have a lower amount of relocation in the next year.

Interestingly, the visualisation shows that places in the outer East including Cranbourne, Clyde North and the outer west including Point Cook and Werribee South. The inner city postcodes which include suburbs such as Fitzroy, Brunswick and North Melbourne are forecasted to have much less migration in the next year.

Streamlit - Data Visualisation of migrations
Streamlit - Data Visualisation of migrations SYD

Data Visualisation – Greater Sydney Region

A similar visualisation was done in the Greater Sydney area, where a similar trend was observed.

High levels of migration are forecasted for outer-city areas including Kellyville and North Kellyville and outer-city south west south west areas including Camden and Oran Park.

Like Melbourne, there seems to be less migration forecasted for inner city suburbs including Chippendale, Ultimo and Redfern.

Steps to Create the Visualisations

The following steps were performed to create the geospatial visualisations.

Firstly, the base steps to create a Streamlit App were completed. This includes creating an app and selecting a warehouse to run the queries. This will then create a Snowpark worksheet which allows the creation of a Streamlit app using Python. The Streamlit environment also needs to be set up to allow for the ingestion of packages which requires the CREATE STREAMLIT permission.

The third-party packages were then ingested using the Packages tab at the top of the worksheet. Only packages which are supported by Snowflake are able to be ingested to ensure that the Snowflake platform remains secure. Both Matplotlib and Pydeck were ingested to create these visualisations.

The required packages were then imported to create the Streamlit visualisation

# Import python packages

import streamlit as st

from snowflake.snowpark.context import get_active_session

import json

import pydeck as pdk

import matplotlib.pyplot as plt

import matplotlib as mpl

The Snowpark package was used to connect the worksheet to the table containing the 12 month forecasting data in Snowflake. The postcode geospatial boundaries were also obtained, joined to the forecasting data and converted into a geojson format. This was achieved using the code below:

session = get_active_session()


session.sql ("""SELECT

POA_CODE_2021 as POSTCODE_NAME,

NUMBER_OF_PEOPLE,

ST_ASGEOJSON(geometry) AS geojson

FROM

forecast_12periods_move_to --forecasting model table created in Step 3


INNER JOIN ABS_POA_2021_AUST_GDA2020

ON POA_CODE_2021 = TO_POSTCODE

""").collect()

Each row in the query represents the postcode, the number of people forecasted to move into the postcode in the next year and a geojson representing to geometry of the postcode boundary. Further transformations were done on the result so that each row in the query result was transformed into a dictionary. A key aspect of this transformation was assigning RGB colour code to each postcode depending on the number of people forecasted to migrate to that postcode. A sample of the geojson format is shown below:

map_geojson = {

"type": "FeatureCollection",

"features":[

{"type": "Feature",

"properties":

  {"postcode": 2000,

'colour':(68, 1, 84)

  },

"geometry":{'geometry in geosjon format'}

},

{"type": "Feature",

"properties":

   {"postcode": 2000,

'colour':(38, 130, 142)

 },

"geometry":{'geometry in geosjon format'}

},

]

}

The base chloropeth map was then set up by assigning the centre and zoom point for the map to render.

pydeck_chloropeth = pdk.Deck(

map_style=None,
initial_view_state=pdk.ViewState(

latitude={insert centre latitude},
longitude={insert centre longitude},
zoom={insert zoom level},

),

The geojson created in the step above was then added to the base map to create the chloropeth layer using the code below.

layers=[

pdk.Layer(

"GeoJsonLayer",

map_geojson, #name of the goejson created earlier

opacity=0.8,

stroked=False,

filled=True,

extruded=True,

wireframe=True,

get_fill_color='properties.colour',

get_line_color=[255, 255, 255],

)

],

)

The legend on the map was created using the colorbar function in the matplotlib library.

fig, ax = plt.subplots(figsize=(6, 1), layout='constrained')

cmap = mpl.cm.viridis
norm = mpl.colors.Normalize(vmin=0, vmax=1)

fig.colorbar(mpl.cm.ScalarMappable(norm=norm, cmap=cmap),

cax=ax, orientation='horizontal', label='Map legend', ticks=[])

Finally, the following lines of code were used to render both the chloropeth map and the legend on the Streamlit app.

st.pydeck_chart(pydeck_chloropeth)

st.pyplot(fig)

Summary

In this blog, the Australia Post Movers Statistics Marketplace listing was used along with Snowflake's Cortex ML Forecasting function to forecast the postcodes within Australia that have high levels of population movement.

The Streamlit data visualisations revealed that the postcodes that the highest amount of people were forecasted to move into were predominantly located in the outer-city area. Read our following blog to understand where people are moving to.

The rundown above highlights how the Snowflake Data Platform makes it straightforward for businesses to access quality data and market-leading compute, AI and visualisations all on one neat platform.

 

Australia Post Movers Statistics Data

This dataset contains five years of de-identified, aggregated information on past moves captured by Australia Post's Mail Redirection service.

Access Australia Post mail redirect statistics now to help you develop competitive data-driven strategies.

The intellectual property rights for all content in this blog are exclusively held by Data Army and The Proptech Cloud. All rights are reserved, and no content may be republished or reproduced without express written permission from us. All content provided is for informational purposes only. While we strive to ensure that the information provided here is both factual and accurate, we make no representations or warranties of any kind about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose.

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Could a Revamp of Australian Property Planning Rules Solve Some of Australia’s Housing Issues?

Could a Revamp of Australian Property Planning Rules Solve Some of Australia’s Housing Issues?

Rising property prices and high costs of living means the Australian dream of home ownership is slipping further and further away for many. Could an overhaul of Australian property planning rules offer a solution?

In recent discussions during a heated ABC Q+A debate on Homeownership, Homelessness & Housing supply, the Australian dream of homeownership has taken centre stage again, unveiling a crisis that grips not just potential homeowners but extends its grasp towards the homeless and vulnerable communities across the nation.

Even those “fortunate” enough to have purchased property are feeling significant interest rate stress as cost-of-living soars in recent times. Renters are experiencing rent hikes and dealing with historically low vacancy rates.

Australia’s housing issues in the spotlight

“Fundamentally, the problem is that we’re not building enough homes,” Mr Leigh, the Assistant Minister for Competition, Charities and Treasury, told Q+A.

It’s clear that Australia requires millions more homes to meet current demand but also accommodate future population growth.

However, as it stands, governments are finding it challenging to meet their own targets.

The debate, and followed up by The Sydney Morning Herald article Do planning rules really affect house prices? The answer is clear, has cast a spotlight on a host of interconnected factors contributing to this issue.

At the heart of the matter are planning and zoning rules, which, contrary to some beliefs, significantly influence housing prices and supply. This is a contentious point, highlighted by the disagreement between Max Chandler-Mather, Greens Spokesperson on Housing & Homelessness, and Dan McKenna, CEO of Nightingale Housing, pointing to a deeper complexity within the debate.

While Shadow Assistant Minister for Home Ownership, Senator Andrew Bragg’s remarks on construction industry, skills shortage and migration underscores the multifaceted approach needed to address the crisis.

This crisis reflects broader societal issues—including a shortage in construction and trades to debates on policy, immigration, and infrastructure development.

The challenges extend to financial mechanisms of owning a home, with strategies like tapping into superannuation funds or adopting shared equity schemes considered as possible solutions (which have their own implications).

As housing prices in some states soar to record levels and impact housing affordability, the dream slips further away for many, with rising homelessness a sign of a deepening emergency.

The conversation also touched on regulatory measures like controlling rent increases and revisiting the impacts of capital gains tax and tax concessions, such as negative gearing, which has been identified as contributing factors in the price hikes over the last few decades.

A possible solution to the housing crisis

Looking beyond our shores for solutions, it’s clear that this is not an issue unique to Australia.

International examples offer alternative paths forward and suggest a re-evaluation of property planning rules.

But first, we need to understand our current property planning rules.

Captured and represented by Archistar, Australian Property Planning Rules for Land Use could provide crucial insights into land use and, potentially, relief to the crisis. The data, available via the Snowflake Marketplace, details current land use zoning applied across the nation with geospatial representation. The use of that data can help us to understand where we currently stand and offer possible solutions when variables are tweaked, such as housing density.

Another challenge in solving the housing affordability problem in Australia, and globally for that matter, is the accessibility of data. 

Archistar is helping to break down these barriers by collating national datasets for planning rules that can be easily accessed and analysed using Snowflake’s Data Platform.

The way forward

As we negotiate this national emergency, it becomes increasingly evident that a multifaceted and inclusive approach is essential.

Engaging in open discussions, exploring innovative housing policies, and reconsidering the frameworks which our housing market operates could pave the way towards a more equitable future.

The dream of homeownership, safeguarding against homelessness, and the creation of sustainable communities demand it.

Australian Property Planning Rules for Land Use

Access Archistar’s Australian Property Planning Rules and understand zoning designations and regulations across the nation.

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Top Real Estate Technology Global Events

Top Real Estate Technology Global Events

As the real estate industry continues to evolve at a rapid pace, staying abreast of the latest trends, technologies, and innovations is crucial for professionals seeking to leverage the full potential of real estate technology and proptech.

For anyone in property and real estate, attending global proptech events offers a chance to integrate into the wider real estate technology industry. 

Top 3 reasons why these events are valuable

1. Networking, learnings and potential partnerships

A diverse mix of professionals allow for broader networking opportunities than what your local market may offer. Particularly in overseas markets where the proptech industry may be more mature or advanced compared with your local region, these events allow you to connect with leaders, potential customers, and collaborators who might offer valuable learnings, insights to trends and new technology, alternative business models or a global perspective into the market and competition. These events could offer a platform for gaining feedback and validation, or even to identify and recruit talent.

2. Brand visibility and marketing

Participation at these events may significantly increase a business’ visibility within the global industry; even more so if you attend as a speaker or exhibitor. An effective platform to showcase innovations, solutions, and success stories to a targeted audience, high visibility can enhance brand recognition, attract leads or other marketing opportunities.

3. Investor engagement

Often attended by venture capitalists, angel investors, and other financial backers actively seeking to invest in promising startups, these events can offer potential pitching sessions, one-on-one meetings, and informal networking opportunities. 

Global Real Estate Technology and Proptech events

2024 delivers a range of global events dedicated to real estate technology and proptech, offering plenty of opportunities for learning, networking, and growth. Varying from conferences to interactive expos, these events bring together thought leaders, innovators, and practitioners from around the world. Here is our round-up of top global events:

Event

Description

Location

Dates

RETCON 2024Real Estate’s Leading Technology & Innovation ConferenceNew York, USA1-3 April
PropTech SummitPropTech Summit is the new trade fair and conference for the PropTech industryHamburg, Germany10-11 April
CRETech LondonThe World’s Leading Built World Innovation and
Sustainability Conference Series
London, UK8-9 May
PropTech Symposium DenmarkExciting debates, startup showcases, and insights from international thought leadersCopenhagen, Denmark13 May
Future of Construction SummitThe annual gathering for the people and companies redefining Australia’s construction industryBrisbane, Australia14-15 May
Property Technology ConfexA Digital & Sustainable Built Environment –
Investing, Selling, Managing and Operating
Dubai, UAE3-4 June
Proptech ViennaThe networking conference on innovation, technology and sustainability in the international real estate industry, connecting tech and real estate experts with startups, scaleups, investors, business angels, VCs and industry associations.Vienna, Austria13 June
Australian Proptech SummitProptech solutions for Australia’s new commercial and residential realitySydney, Australia30 July – 1 August
Inman ConnectThrough immersive experiences, innovative formats, and an unparalleled lineup of speakers, this gathering becomes more than a conference — it becomes a collaborative force shaping the future of our industrLas Vegas, USA30 July – 1 August
iOi Summit by NARPropTech leaders and futurists, investors, and forward-thinking real estate professionals come together to fuel the future of the industry.Chicago, USA28-29 August
PropTech ConnectEurope’s largest proptech  eventLondon, UK4-5 September
REAL PropTech ConferenceGermany’s most important conference on PropTech, digitalisation and transformation of the construction and real estate industryFrankfurt am Main, Germany4-5 September
BlueprintThe premier event for industry executives, real estate & construction tech startups, and VCs.Las Vegas, USA17-19 September
Expo Real 2024Expo Real is the most important trade fair for the real estate industry and offers a comprehensive overview of developments, topics, innovations and solutions in the real estate industry.Dubai, UAE7-9 October
Proptech Forum 2024An event to unite proptech founders and teams collaborating on the future of the industry.Sydney, Australia17 October
Urban Tech ForwardUrban Tech Forward aims to accelerate the development of net-zero cities. Designed to rethink spaces where people live and work – through the prism of decarbonisation and resilience – it brings together urban tech innovators, VCs, real estate developers, policy-makers and most prominent entrepreneurs to shift the way we build and make real progress on achieving a zero-carbon future.Warsaw, Poland25-26 October
CRETech New YorkThe World’s Leading Built World Innovation and
Sustainability Conference Series
New York, USA13-14 November
Home apti AwardThe apti award recognises the most innovative Tech provider and startups in the international Real Estate sector. Both national and international PropTechs have the opportunity to apply in the categories.Palais Berg, Austria14 November

Other Considerations

Other than factoring in the cost and time associated with traveling and attending these global events, consider the relevance and quality, because not all events are created equal.

Check for alignment and relevance with your niche and strategic focus.

And lastly, with the growing range of digital alternatives, consider whether virtual events can offer you similar benefits.

 

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What Are Mesh Blocks & How Are They Used in Real Estate

What Are Mesh Blocks & How Are They Used in Real Estate

What are Mesh Blocks?

As defined by Australian Bureau of Statistics (ABS), mesh blocks are the smallest geographical area of the Australian Statistical Geography Standard (ASGS) and ABS’s classification of Australia into a hierarchy of statistical areas.

Mesh Blocks are essentially a set of geographic boundaries designed to segment Australia into very small areas. These boundaries are used to apply a systematic grid over the entire country, dividing it into tiny sections called Mesh Blocks.

Each Mesh Block is a polygon that outlines a specific piece of land, which can range from a single block in a city to a vast, sparsely populated area in the countryside.

In 2021, the ABS reported 368,286 Mesh Blocks covering the whole of Australia without gaps or overlaps.

Mesh Blocks covering the whole of Australia. Source: ABS Maps

 

Mesh Block design

Mesh Blocks for the current ASGS Edition 3 are designed according to a standard set of design criteria first developed for ASGS 2011.

Most Mesh Blocks are designed to contain 30 to 60 dwellings, although some low dwelling count Mesh Blocks exist. They are permitted in order to account for other design criteria.

The reasons for the minimum dwelling count of Mesh Blocks is so they’re small enough to aggregate to a wide range of areas, allow comparisons between geographic regions but also prevent accidentally exposing confidential information of individuals or businesses.

 

Mesh Block changes

Mesh Blocks are updated (or redesigned) every 5 years to stay relevant.

Mesh Blocks for the current ASGS Edition 3 was redesigned to ensure it still meets the design criteria first developed for ASGS 2011 and reflects the growth and change in Australia’s population, economy and infrastructure.

Mesh Block Changes

Example of Mesh Block change along the border of Queensland and New South Wales. Source: Australian Bureau of Statistics

How are Mesh Blocks created?

Each Mesh Block is assigned a unique numerical code or identifier. This code is used to reference the Mesh Block in statistical databases and geographic information systems (GIS).

The format of the code can vary but often includes digits that signify hierarchical levels of geography.

In Australia, Mesh Block identifiers are 11-digit codes.

The 11-digit Mesh Block code comprises: State and Territory identifier (1 digit), and a Mesh Block identifier (10 digits).

How are Mesh Blocks used?

The ABS does not and cannot provide detailed segmentation data (Census data) that can be directly connected to individuals or businesses. Instead, they provide anonymised and aggregated data against geographic areas. Mesh Blocks are the smallest geographic area that the ABS provide statistics against, so it offers population and dwelling counts at a hyper-local level – this is particularly useful for Census analysis.

These geographic boundaries allow for the aggregation of data from individual Mesh Blocks into larger geographic units, such as suburbs, towns, cities, and regions. This hierarchical structuring makes it possible to analyse data at various levels, from very detailed local information to broader regional or national trends.

Most businesses, including proptechs, looking to augment their analysis with population segmentation data will adopt Mesh Blocks as their default level geographic unit to gain the highest level of accuracy. The popularity of Mesh Blocks mean many businesses will use it for geographic statistics regardless of whether or not the Census data is being leveraged.

What role do Mesh Blocks play in proptech?

Mesh Blocks play a vital role in Proptech, geospatial data, and the real estate industry in Australia. Some example uses include:

Granular geographical data

Since Mesh Blocks are the smallest geographical units, providing a granular level of detail in geographic data, its precision is valuable for analysing real estate trends at a hyper-local level.

Accurate small area statistics

Mesh Blocks are designed to fulfill the need for accurate small area statistics. In Proptech, having precise data at this level is instrumental for understanding localised property markets, demographics, and trends.

Spatial mapping and analysis

Geospatial data, including Mesh Blocks, facilitates spatial mapping and analysis. Proptech platforms can leverage this data to visualise and analyse property-related information, helping users make more informed decisions based on geographical insights.

Enhanced property valuation

Proptech applications can utilise Mesh Blocks to refine property valuation models. The data on dwellings and residents at this level allows for a more nuanced understanding of property values, considering localised factors.

Land use identification

Mesh blocks broadly identify land use, such as residential, commercial, industrial, parkland, and so forth. Land use information is valuable for proptechs involved in property development, urban planning, and investment strategies.

Targeted marketing and outreach

Proptech businesses can use Mesh Block data to tailor marketing and outreach strategies to specific geographical areas. Understanding the demographics and dwelling counts at this level allows for targeted and effective location-based campaigns.

Census-driven insights

The inclusion of Census data within Mesh Blocks, such as the count of usual residents and dwelling types, provides proptech platforms with up-to-date demographic information. This can aid market analysis, customer profiling, and investment strategies.

Integration with digital boundary files

The availability of Mesh Block boundaries in digital boundary files enhances their usability in Proptech applications. These files can be readily integrated into geospatial systems, making it easier for developers and analysts to work with this geographical data.

The foundational building blocks in real estate

Mesh Blocks are foundational building blocks for geospatial and proptech applications, providing granularity and accuracy for understanding local real estate markets, demographics and land use.

To aid proptechs, The Proptech Cloud offers its Geography – Boundaries & Insights dataset which includes all mesh blocks and their spatial areas for analysis and location-based visualisation of statistics.

The integration of this important information can enhance the precision and relevance of analyses within the proptech and real estate sectors. Read our following blog to learn how to incorporate Mesh Blocks into datasets.

How to Incorporate Mesh Blocks into Datasets

Incorporating mesh blocks into datasets involves several steps to ensure seamless integration and effective utilisation of geographical information. Here’s a guide on how to incorporate mesh blocks into datasets.

Subscribe to our newsletter

Subscribe to receive the latest blogs and data listings direct to your inbox.

Read more blogs from The Proptech Cloud

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A high-level approach to developing a storm surge and hurricane risk rating system to guide stakeholders with a vested interest in coastal properties.

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The ASGS is used to better understand where people live and how communities are formed.

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Mesh blocks can enhance the precision and relevance of geospatial and proptech analyses. Here are some tips and steps to incorporate mesh blocks into datasets.

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This detailed visual analysis for Australia’s major capital cities breaks down how net migration trends are evolving across different regions.

How to Measure Construction Industry Performance

How to Measure Construction Industry Performance

The construction industry is a vital component of the global economy, representing a substantial portion of gross domestic product in many countries.

Understanding the dynamics of this sector requires a deep dive into various metrics and statistics to gauge its health and direction.

Here we’ll outline the essential metrics used to measure construction activity, offering insights for contractors, investors, government bodies, economists and other stakeholders.

1. Construction Spending & Cost Estimation

The construction spending metric reflects the total expenditure on construction projects over a specific period. Breaking down this spending into sectors like residential, commercial, and public construction offers a nuanced view of the industry.

Importantly, historical or past construction spending will serve as a reference point and have some influence on future cost estimations – one of the most important steps in construction project management.

A cost estimate is a prediction provided by an estimator based on all available data serves as the baseline of the project cost at various stages in project development.

2. Building Permits Issued

A building permit is official permission provided by the government department of building or the building regulators to proceed with a new construction project. Obtaining a building permit is crucial before moving ahead with any planned property alterations or construction.

The number of new building permits granted by governments is a forward-looking indicator, measuring current real estate market demand, performance of the industry, predicting future construction activity and overall economic vitality.

A building permits report provides nationwide and location specific detail which can pinpoint which local regions fuel the economy, and governments can use this info to make decisions around funding and where to direct investments.

3. Demolition Approvals

Generally, the type of permits required will depend on a couple of factors:

  • Local council specifications and rules, and
  • What is being demolished, how much is being demolished and where.

In most cases, demolition approval (or similar) is required to demolish a building or structure.

Though not always, construction frequently follows demolition, making demolition approvals a rough indicator of future construction activity.

4. Construction Starts

Construction starts measure the initiation of new construction projects, and where available, the value of these projects. These metrics are a key economic indicator and when tracked over time, will help measure market trends.

Building construction

5. Housing Starts and Completions

In the residential sector, tracking housing projects commenced, completed, under construction, and in the pipeline, along with the value of these projects, is essential for gauging market health and predicting supply to meet housing needs for the future.

In Australia, the Urban Development Institute of Australia’s latest report shows that the federal government will fall short of its goal to build 1.2 million home by mid-2029. This is due to a “large backlog of properties that have been approved that are yet to be completed” said Westpac chief economist Luci Ellis, who admits there are a lot of factors contributing to this production issue.

6. Architectural Billings Index – United States of America (USA)

Produced by the AIA Economics & Market Research Group, the Architectural Billings Index (ABI) is a leading economic indicator in the USA that reflects the demand for non-residential construction, including commercial and industrial structures. The ABI gauges whether billing activity for the previous month grew, declined, or remained flat. This measure forecasts construction spending by reflecting the lead time between architectural billings and construction expenditure. A positive ABI can be a sign of strength or resurgence in the broader economy, while a negative ABI can signal weakness or an impending downturn.

7. Construction Backlog Indicator – USA

In 2008, the Associated Builders and Contractors introduced the Construction Backlog Indicator (CBI) to forecast the volume of upcoming work for commercial and industrial contractors. This indicator centres on the commercial, institutional, industrial, and infrastructure construction sectors in the USA.

Backlog, as defined by ABC, represents “the dollar value of contracted work to be completed in the future” by construction firms.

To calculate backlog, the formula is:

(Current month’s backlog value in dollars) / Fiscal year revenues (base year) x 12 = Total months of contracted work ahead

CBI provides a view of the volume of construction work in the USA contracted but not yet executed which can serve as a predictor of future activity and industry momentum.

A higher backlog generally implies a more optimistic outlook for the construction industry, while a lower backlog suggests the opposite.

8. Employment in Construction

Job numbers in the construction sector can reveal much about the industry’s health and future growth prospects, including an indicator of any labour shortages, and construction activity and economic impacts.

9. Cordell Construction Cost Index (CCCI)

The Cordell Construction Cost Index (CCCI) is a quarterly industry benchmark that tracks and monitors the movement of building work costs for stand-alone houses. It is a valuable metric which tracks changes in construction costs, including labour costs, services, building material prices, regulatory expenses, equipment and includes expert commentary on key market factors. It is vital for understanding market dynamics, pricing trends and industry comparisons.

10. Equipment Usage

The usage rates of various types of equipment and their deployment in residential, commercial, and industrial segments can offer insights into ongoing industry activity. This data can unveil changes and trends in equipment types, across global regions, segments, and provide an indicator of market share, growth and overall size of the market.

Demolition

11. Construction Productivity

Construction productivity is often measured as output per labour hour. Or in other words, how much work is done during time spent doing it.

Productivity metrics indicate efficiency levels and the there are a number of factors which can impact productivity such as labour characteristics, work condition and non-productive activities, as documented in a Carnegie Mellon University study.

Improving productivity is often in the best interests of stakeholders such as project managers, construction firms, engineers, architects, investors and financiers, regulatory bodies and government agencies, environmental groups and the general public.

Productivity in the construction sector is an important measurement to track as it can impact the ability to deliver outcomes such as housing and infrastructure a country needs to accommodate population changes, the new energy assets required to meet requirements or even a country’s decarbonisation goals.

Construction workplace safety

12. Safety Metrics

All workers have the right to a healthy and safe working environment.

Statistics on work-related injuries, incidents, accidents, fatalities, and safety violations are crucial for assessing the industry’s commitment to safe construction practices and the proposal and implementation of new measures to protect both workers and bystanders.

13. Sustainability and Green Building Metrics

These metrics evaluate a project’s environmental impact and adherence to sustainability principles, both increasingly important in modern construction.

With more and more organisations investing in corporate sustainability and building sustainability strategies and goals, these metrics are important to measure and increase transparency around planning, design and development practices.

The Proptech Cloud’s Environment and Energy Efficiency data contains energy supply data and NABERS energy rating data which may help guide decisions on energy sourcing as part of a sustainability strategy.

14. Supply Chain Metrics

Measuring and analysing the efficiency of the supply chain, including the availability and cost of materials, procurement, processing and distribution of goods helps to anticipate potential construction project impacts such as delays or cost overruns.

Improvements in mathematical models, data infrastructure and the expansion and availability of applications provide deeper insights, while improving forecasting, efficiency and responsiveness in supply chain management.

What Do These Metrics Tell Us

Understanding these diverse metrics is essential for anyone involved in analysing the construction industry as they provide a comprehensive view of the sector’s performance, trends, and economic impact.

Analysts will often use a combination of these metrics and measurements to make conclusions, predictions or decisions regarding the property market.

And by keeping a close eye on these indicators over time, industry professionals can make better decisions, improve market condition forecasts, and more accurately assess the overall health and vitality of the construction sector.

 

Australian Construction Activity Data

The Proptech Cloud’s Construction Activity dataset contains Australian construction activity statistics which may be helpful for planning, demand forecasting and construction cycle timing.

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