What Is A Cadastre?

What Is A Cadastre?

Nov 18, 2024 | Data Domain

Cadastres are used extensively in real estate and beyond. We break down what they are, how they’re stored, used and maintained in Australia.

Cadastre At A Glance (TL;DR)

A cadastre is an official record of land ownership, boundaries and value, crucial for property management, taxation and legal clarity.

Traditional cadastral systems relied on paper maps and manual record-keeping, whereas modern cadastres keep property data accurate, interactive and accessible.

Cadastres are often created and managed with technologies like Geographic Information System (GIS) which capture, store, analyse and visualise spatial or geographic data.

Around the world, innovations like 3D cadastres and digital platforms are enhancing how we manage, visualise and understand land data.

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What Is A Cadastre?

A cadastre is a detailed register or database that holds information about land or property within a specific area. Each record in the cadastre defines the boundaries of a property, as mapped by land surveys. It also includes important details like the property’s location, features, and value.

A cadastre is an essential tool for managing and regulating land ownership and use. It helps with collecting property taxes, assessing land values, and resolving property disputes. It usually includes property boundaries, ownership details, and physical descriptions like size, shape, and terrain. It may also contain information on land use, zoning rules, building permits and environmental regulations.

What Does A Cadastre Look Like On A Map?

The way a cadastre is represented on a map can vary significantly depending on the source of the data and the configuration settings used in the mapping software. Different factors like styling, symbols, and labeling options can influence how the cadastre appears visually on the map.

The following image is a typical representation of cadastre on a map, showing boundary lines that delineate the various land parcels or lots. These boundary lines help visually separate one property from another. While lot numbers are used as an identifying label to provide a quick reference to specific parcels within the cadastre.

Cadastre represented on a map

Australian Cadastres

In Australia, individual state and territory governments are responsible for the maintenance of cadastres, rather than the federal government.

Each state and territory has its own land administration agency responsible for maintaining cadastres within their jurisdiction.

The following organisations maintain cadastres:

These agencies are responsible for updating and managing the cadastre, including recording changes to property ownership, boundaries, and other relevant information. They provide access to the cadastre and offer related services to the public, including title searches, property reports, and other land-related information.

What File Types Are Used To Store Cadastres?

These file types are commonly used to store a cadastre:

  • Shape file (.shp)
  • GDB (.gdb)
  • Geojson (.geojson)

File sizes of cadastre files can become quite large, depending on the extent of the coverage.

For example, the cadastre for New South Wales (NSW) in Australia is approximately 1.4 GB when compressed. Working with large files can be more manageable in cloud environments like Amazon Web Services (AWS). These cloud platforms provide substantial computing power that can be accessed when needed, then switched off in a pay-per-use model to more efficiently handle the processing requirements of large cadastre files.

Primarily spatial files, they contain geometry data that represents the boundaries of each land parcel within the cadastre. The geometry information can be stored and represented in various text formats, which are universally understood by spatial data software applications.

The most common approaches for storing and representing the geometries are

which ensure compatibility and ease of interpretation across different software tools and platforms.

Additional attributes relating to the cadastre can also be served within the same spatial file, such as through the properties key within a cadastre’s GeoJSON document. Other formats such as WKT or WKB do not support the direct inclusion of additional attributes to the geometry, but can be associated with in different ways such as in an accompanying csv file containing any additional attributes.

What Does A Cadastre Look In A Snowflake Marketplace Listing?

To incorporate a cadastre into Snowflake, it needs to be transformed into a table structure. The process involves loading the cadastre data in the form of GeoJson as a VARIANT data type in Snowflake. Then the GeoJson features are flattened and converted into individual rows within the table.

Alternatively, the cadastre file can be converted to a flat file outside of Snowflake, then loaded into Snowflake as you would with any other flat file.

This flattening process makes it easier to query and analyse the cadastre data using standard SQL operations within Snowflake, allowing for efficient storage, retrieval, and analysis of the information.

Attribute {A}Attribute {B}Attribute {C}Geometry
123POLYGON((30 10, 40 40, 20 40, 10 20, 30 10))

*The actual columns (feature attributes) available for each piece of land registered on a cadastre is dependent on the maintainer/publisher of the cadastre.

Who Provides Cadastres On The Snowflake Marketplace?

Here are a few providers of cadastres on the Snowflake Marketplace:

  • The Proptech Cloud
  • Geoscape
  • Precisely

How Are Cadastres Used?

Cadastres play a pivotal role in linking spatial data to real-world applications.

In the context of the built environment, cadastres serve a number of purposes, such as:

  • Identify the unique number of properties in a country,

  • Identify changes to properties (merges, subdivisions, title registrations),

  • Spatially link other spatial information to a property.

  • Spatially lookup a property based, i.e. lookup properties based on latitude and longitude coordinates, or based on geospatial shape (think drawing a circle on map to search for properties on the map).

  • Represent property boundaries on a map.

  • Assess property risks, develop climate change adaption strategies, evacuation routes and emergency responses.

  • Effective land use planning to guide urban development and expansion, the management of rural land resources and supporting environmental protection initiatives.

  • Planning and managing infrastructure projects, including tility networks.

The Future of Cadastres

Around the world, countries are adopting 3D cadastres to better capture the complexity of modern property landscapes.

For example, a collaborative project between Russia and the Netherlands explores how 3D models can improve the recording of rights associated with multi-level buildings, complex structures, and underground networks, such as gas pipelines.

The Netherlands has also developed 3D cadastre solutions to address the limitations of 2D cadastral maps in representing complex spatial property arrangements.

In Australia, the Australian CADASTRE 2034 strategy aims to create a fully digital, interoperable cadastre that can support various applications beyond traditional land administration.

As technology advances, so too does our ability to understand and shape the spaces in which we live and grow.

These advancements are an inspiring shift toward a future where cadastres will play a bigger role in urban planning, environmental management, and beyond.

Originally published: 25 September, 2023

Last updated: 19 November, 2024

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The Shifting Landscape of Property Ownership in Australia

The Shifting Landscape of Property Ownership in Australia

Oct 18, 2024 | Data Domain

In Australia, there are different types of property ownership structures each with unique rights and responsibilities. From outright ownership and joint tenancy to tenants in common and trust ownership, each structure offers varying levels of control and liability.

However, with rising property prices, regulatory changes, and economic uncertainties, property ownership is evolving.

Relatively new, innovative models like shared equity schemes, build-to-rent and fintech-driven solutions address affordability and accessibility challenges, offering different pathways for those looking to invest in a dynamic property market.

Traditional Ownership Structures

When it comes to owning property in Australia, various ownership structures provide different rights and responsibilities to the owners.

  • Outright Ownership: In this structure, you are the sole owner of the property without any mortgage or debt, with your name alone on the deed. As the sole proprietor, you are fully responsible for the property, which is typically owned in your personal name.
  • Joint Tenants: Under joint tenancy, you and another person share equal ownership of the property. Both parties have full ownership rights, and upon the death of one joint tenant, their share automatically passes to the surviving joint tenant.
  • Tenants in Common: This structure allows two or more people to own specific portions of the property, which can be divided in any ratio, such as 50/50 or 70/30. Each owner has individual rights to their share, which they can sell or bequeath independently of the others.
  • Trust Ownership: Here, the property is owned and managed by a trust, an entity that holds assets on behalf of its beneficiaries. Family trusts are common in this structure, particularly when property is intended to be passed on to younger family members.
  • Company Ownership: Property can also be owned through a company, and there may be various taxes that could affect a business property.

Current Challenges in the Australian Property Market

Australian Housing and Urban Research Institute’s Report on Australian home ownership over the years shows that the Australian property market is facing significant challenges that are reshaping how people approach property ownership.

Affordability

Rising property prices and stagnant incomes have made traditional home ownership increasingly difficult for many Australians, particularly younger and lower-income households.

Over the past decades, the ability of individuals aged 24–45 to purchase homes has diminished, contributing to a long-term demographic trend of lower ownership rates.

The lack of significant income growth limits the ability to save for deposits or qualify for mortgages, intensifying the impact of high property prices.

Rising rents in recent times also forces renters to allocate a larger portion of their income to rent, making it more challenging for them to save for a deposit to purchase a home.

Housing Supply and Demand Imbalances

The mismatch between housing supply and demand is another significant challenge.

The construction industry is increasingly focused on multi-unit dwellings designed for the rental market, particularly in major Australian cities.

These properties tend to cater to investors and renters rather than potential homeowners, reflecting an industry recognition that ownership may not be the primary mode of housing growth in the future.

Economic Uncertainty

Factors such as interest rates and inflation influence property ownership trends by affecting borrowing capacity and investment decisions.

Stagnant incomes, alongside a mismatch between housing supply and demand, has further strained affordability.

Regulatory and Policy Environment

The policy environment has not supported a resurgence in homeownership. Instead, there is a strong push toward supporting rental markets and investment properties (such as oppositions to negative gearing reform and the build-to-rent push), partly due to the influence of financial and property development lobby groups.

By contrast, there are not equivalent lobbying interests for home purchase.

Global Context and Future Outlook

The decline in homeownership is not unique to Australia, but part of a broader trend seen in many developed countries. As policies and market conditions evolve, there is a noticeable shift from promoting homeownership to managing rental markets.

This trend seems to suggests that Australia’s housing landscape may continue to favour rental and investment properties over traditional homeownership, which means new approaches to housing policy and economic support for potential homeowners is required.

Costs of Changing Property Ownership

In addition to the above challenges, the change of property ownership incurs various costs in Australia, which adds to the cost of home ownership:

    • Stamp Duty: A government tax payable when purchasing property. It is charged as a percentage of the land valuation, typically between 3% and 5.5%, depending on the state.
    • Capital Gains Tax (CGT): If you sell property or assets for more than its purchase price, you incur a capital gain and must pay tax on it; if you sell for less, you incur a capital loss. Applicable to assets purchased on or after 20 September 1985, CGT is 25% but is exempt for primary residences. Investment properties sold after 12 months of ownership qualify for a 50% CGT discount.
    • Other Fees: Legal fees, valuation fees, and costs relating to real estate agent, property marketing, moving and/or changes in existing mortgages may also apply.

These compounding issues have given rise to innovative property ownership models, driving buyers towards new ways of getting onto the property ladder.

Meeting Market Demands

The challenges of the Australian property market have spurred the development of unconventional ownership models that reflect the realities of modern buyers and offer an alternative to the more traditional ideals of property ownership.

Here we discuss alternative ownership models and schemes growing in popularity.

Collaborative Models

As discussed, there are a few options for traditional joint ownership of a property, with different legal ownership structures allowing multiple parties to jointly or partially own property.

Alternative collaborative models, however, are gaining popularity as it leverages collective buying power of their members when they allow multiple parties to share the costs and benefits of owning property. Examples include fractional investing or fractional ownership, where investors own a fraction of a property, and housing cooperatives.

These models are often facilitated through digital platforms that handle everything from matching co-owners (such as Mortgage Mates and Co-operty) to managing legal agreements (such as Rundl).

Shared Equity Schemes

A shared equity scheme is where buyers purchase a portion of a property and the remaining share is owned by an investor or the government.

Examples include the nationwide Help to Buy Program where the government contributes 40% for new builds and 30% for existing properties.

With the exception of the Northern Territory, variations of these shared equity schemes are offered in each state and territory across Australia.

These schemes lower the financial barrier to entry, enabling more people to own property, even if it’s only a partial equity ownership stake.

Build-To-Rent

Build-to-rent model involves developers retaining ownership of residential properties and leasing units directly to tenants, rather than selling them individually.

While it does not promote individual homeownership, build-to-rent provides several benefits that address common issues faced by renters. Tenants enjoy long-term leases, which provide greater security and the opportunity to build a stable home environment. This model also allows for more flexibility, such as the freedom to personalise living spaces, keep pets and access a range of communal amenities that enhance the quality of life, such as gyms, co-working spaces and social areas.

By focusing on long-term rental solutions, build-to-rent developments aim to create vibrant communities where residents feel a strong sense of belonging and stability, catering to those who prioritise convenience and flexibility by offering a more high-quality, stable and secure rental experiences compared with traditional renting options.

Rent-To-Buy (also known as Rent-To-Own or Vendor Financing)

In theory, rent-to-buy models make home ownership more accessible by offering a “live now, buy later” concept as an answer to those struggling to save a large deposit in Australia’s high-priced housing market.

Typically, the rent-to-buy model allows prospective homeowners to move into a property and live there. Instead of requiring a substantial deposit upfront, this model enables tenants to rent the property and gradually accumulate their deposit as part of their rental payments.

Once the deposit is fully accrued, the tenant can transition to full ownership. FrontYa and PublicSquare offer variations of the rent-to-own model with pathways for potential homeowners to rent a property with the option to purchase it later.

The Synergy Between Fintech and Proptech Driving New Property Ownership Models

The collaboration between fintech and proptech has created a synergy that has driven the development of some new property ownership models by facilitating key processes.

The Rise of Fintech in Property Ownership

One of the most significant shifts has been the integration of financial technology (fintech) into the property market. Fintech companies are transforming how people finance their property purchases, offering more flexible and accessible lending options.

Online platforms now streamline the mortgage application process, providing instant pre-approvals and personalised loan offers based on real-time data, making it easier for buyers to secure financing even in a challenging economic environment.

Fintech has also introduced alternative financing models, such as peer-to-peer lending and crowdfunding.

These platforms allow individuals to invest in property collectively, breaking down barriers for those who might not have the capital to purchase property outright. By pooling resources, investors can own a share of a property and earn returns without traditional mortgages.

Proptech: Revolutionising the Real Estate Industry

Alongside fintech, the emergence of property technology (proptech) is transforming how properties are bought, sold and managed.

Proptech encompasses a wide range of digital tools and platforms designed to enhance every aspect of the real estate process.

Typically, fintech drives these modern property ownership models by providing financial tools and platforms that simplify transactions, expedite processes and enhance transparency.

Proptech complements them by delivering the digital infrastructure and solutions that streamline operations, making these models both accessible and easy to manage.

Innovation and Legal Uncertainty: The Evolving Cycle

Fintech and proptech companies are driving technological innovation and digital disruption across the real estate industry.

However, these advancements also expose the limitations of current regulations.

For example, rent-to-buy and rent-to-own schemes often fall into gaps between federal and state laws, as highlighted by the Consumer Action Law Centre. This unfortunately leaves consumers without the same legal protections that standard home loan borrowers receive.

The scarcity of publicly available information about these new ownership schemes—such as details on conditions, fees, taxes, risks and stakeholder rights—can limit consumers who are conducting due diligence before making any decisions, adding to borrower risk.

To tackle these challenges, proposed laws aim to protect vulnerable stakeholders from risky schemes and regulate against unscrupulous providers.

The relationship between innovation and regulation is constantly evolving, requiring a careful balance between fostering technological advancements, ensuring consumers are protected and that the market is fair.

The Future of Property Ownership in Australia

As these technologies and models continue to evolve, they are not only addressing the current challenges of the Australian property market but are also laying the groundwork for the future. The real estate industry is increasingly interconnected with the broader tech ecosystem, leading to more seamless and integrated property experiences.

In the coming years, we can expect further advancements in fintech and proptech, with innovations that continue to push the boundaries of what’s possible in property ownership and investment. From AI-driven market predictions to blockchain-secured transactions, the future of property ownership in Australia looks set to be more digital, more accessible, and more dynamic than ever before.

This shift toward digitalisation and technological disruption reflects a broader trend across industries, where technology is leveraged to solve complex challenges and create new opportunities. In the property market, this means more options for buyers, and ultimately, a more resilient and adaptable real estate industry that can better meet the needs of a changing world.

For expert help navigating title changes and property ownership questions, consider speaking to a conveyancer or solicitor. They can assist with issues related to property ownership and property law.

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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Parcels, Titles, Addresses and Properties. What’s The Difference?

Parcels, Titles, Addresses and Properties. What’s The Difference?

Oct 14, 2024 | Data Domain

“Parcels”, “titles”, “addresses” and “properties” are often used interchangeably in real estate, but they refer to distinct concepts.

Understanding the differences between these terms is essential, particularly when dealing with land transactions, property ownership, or legal documentation.

We discuss it here.

The Definitions and Differences Between Parcels, Titles, Addresses and Properties

We define each of these terms in the context of Australian real estate. Additionally, we’ll explore how these terms are interlinked, while highlighting the key differences that set them apart.

What is a Parcel?

A Parcel refers to a specific section of land within a larger property. Think of it as a defined portion of land with clear boundaries, often identified by a unique number for legal or administrative purposes. Parcels are essential for land registration and property management.

In some Australian states, such as New South Wales (NSW), a parcel may also be referred to as a Lot and Plan, which serves as its identification number.

Properties can include multiple parcels. For example, a farm might consist of several individual parcels, but all these parcels are sold together when the property is transferred to a new owner.

What is a Title Reference or Volume Folio?

The Volume Folio or Title Reference is a unique identifier assigned to a property title (a legal document that records specific information about a property) in the Australian land registration system. It represents the registered ownership and legal description of a property.

  • The Volume refers to the specific book or register where the property title is recorded.
  • The Folio refers to the page or entry in that volume where the property information is found.

This unique identifier plays a crucial role in land transactions and legal documentation, ensuring properties are accurately identified.

When you hear someone refer to a “Volume Folio,” they are pointing to the formal documentation that confirms a property’s legal ownership.

What is an Address?

An Address is what we commonly use to describe the physical location of a property.

It consists of separate elements such as:

  • Street number
  • Street name
  • Suburb
  • State
  • Postcode

Addresses serve practical purposes, such as mail delivery, and are a key element in identifying a property’s physical location.

However, a property can sometimes have more than one address. For instance, corner lots or properties with access from back lanes may have multiple addresses.

What is a Property?

The term Property can have different meanings depending on the context. Within state government titling systems, a property refers to a piece of land that can be bought and sold.

In this context:

  • A property may consist of one or more parcels.
  • It may have one or more addresses.
  • It is recorded with a Volume Folio.

Understanding this broader definition helps clarify why “property” can be a complex term to define. For more details, check out our blog, What is a Property, where we dive deeper into the nuances of defining property in various contexts.

Common Questions

Can a parcel appear on more than one volume folio?

No, a parcel typically cannot appear on more than one Volume Folio. In the Australian torrens title system maintained by each state, each parcel of land is associated with a single Volume Folio. This folio contains the registered ownership and legal details of that specific property. However, there are exceptions where some states have titles that share a common parcel, like the Northern Territory and Unit Titles.

Are addresses unique?

In theory, addresses should be unique, but in practice, there can be exceptions.

Several factors can lead to address duplication or confusion, such as:

  • Unit addresses: Sometimes unit numbers are left out, making it difficult to distinguish between multiple units in the same complex.
  • Rural addresses: Properties without a public road frontage or properties identified by a name rather than a street number may cause complications.
  • Multi-building complexes: In some cases, the same unit number can appear in different buildings within the same complex, especially if building names are omitted.

Why Understanding the Differences Between These Terms Matters

Understanding the distinctions between properties, parcels, titles, and addresses is essential for ensuring accuracy and clarity, particularly when it comes to land transactions and property ownership.

For further research on Australian properties, parcels, volumes, and folios, check out our recommended resources in the article, Useful Websites for Australian Properties, Parcels and Addresses.

Originally published: 17 July 2023

Last updated: 15 October 2024

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What Is A Property?

What Is A Property?

Sep 23, 2024 | Data Domain

The concept of “property” seems simple at first glance. However, depending on the application or context, defining “property” can become surprisingly tricky. This article explores why the definition is often debated and how various industries view “property” differently.

What Is a Property? The Basic Definition

In the most straightforward sense, we might define property as:

“A property is a piece of land or building that is owned or possessed by someone or something.”

Seems like a solid definition, right?

But as we dive deeper, we start encountering exceptions.

For instance, does a leasehold count as property? What about a shared office space or a mobile home in a trailer park?

The more we think about it, the more complicated it gets.

Eventually the conversation changes to just simply define everything as a property. That is definitely an option, but it has its own drawbacks. We explain why.

Why Defining Property Is Complex

When everything is labeled as a “property,” things can get muddled.

The challenge with a broad definition is that it makes understanding specific attributes harder, which can cause issues when integrating property data across platforms or use cases.

Attempting to obtain a deep understanding of a property when everything is a property would be difficult.

Let’s break down a few of these challenges:

  • Data Integration Issues
    Integrations to other data sets is extremely difficult taking this approach, as the definition is quite fluid and can lead to inconsistent results.
    For example, one data set may contain data on a granny flat and another on a main dwelling on the same parcel of land.
    An address match used to link the two data sets will mean attributes from the granny flat will be added to the main dwelling, which isn’t correct.
  • Over-classification
    Imagine you’re dealing with multiple addresses for the same building or property, such as an apartment building with different unit numbers—should each be considered a separate property, even if there’s only one main building? You could accidentally treat each address as a separate property, even though they all belong to the same main building.
    A broad definition could lead to over-counting properties, skewing your data.

Context Matters: Defining Property Across Industries

The way we define property depends heavily on the context. Here are a few examples:

  • In banking
    In mortgage applications, “property” refers to the real estate that is used as security for the loan. Banks focus on its value, legal ownership, and physical condition because these factors determine how much they can lend. This contrasts with other banking activities, where property may be viewed more generally as an asset without the same level of detailed scrutiny or long-term interest in its specifics.
  • In the legal context
    The definition of “property” often extends beyond just physical assets like land or buildings. According to the Australian Law Reform Commission (ALRC), property can be described as a bundle of rights—a legal construct that gives someone control over the use, enjoyment, and disposition of a certain asset. This means property doesn’t just refer to physical ownership but includes rights to lease, sell, or inherit that asset.
  • In vacation rentals
    On a website like Airbnb, a property could be anything from a private room to an entire villa, or even a yurt!
  • In hotels
    For accommodation platforms, each hotel itself may be considered one property, even if it contains multiple rooms for rent.
  • In government data
    Government data systems define property in different ways through a combination of spatial, legal, economic, and usage-based attributes to support various administrative, planning, and statistical functions.

There’s no universal definition of property, but aligning the term to the needs of your business and customers is critical.

Tips for Defining Property in Your Data

When defining what constitutes a property in your business, here are a few key things to keep in mind:

  • Avoid overly broad definitions
    The wider your definition of property, the harder it will be to capture detailed information. Try to be specific.
  • Ensure integration flexibility
    If you plan to use third-party property data, ensure your definition allows for easy data integration.
  • Align with common property concepts
    Typically, property data revolves around parcels, titles, addresses, or buildings. Ensure your definition aligns with one or more of these. For more in-depth guidance on property data, read our post on the differences between parcels, titles, addresses and addresses.
  • Carefully handle third-party data
    When integrating external property data, verify that the definitions are compatible or identify any differences early to avoid data issues.
  • Consistency is key
    Ultimately, the definition of a property will vary depending on your industry, business needs, and customer expectations. What matters most is consistency—once you define what “property” means to you, apply it consistently across all of your data handling processes. Inconsistencies can lead to misinterpretations and poor business decisions.

Originally published: 26 July 2023

Last updated: 23 September 2024

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Why Is It So Difficult To Parse Addresses?

Why Is It So Difficult To Parse Addresses?

Aug 5, 2024 | Data Domain

Precise address data is fundamental to a multitude of services.

The ability to accurately dissect and interpret address components is important for the accurate delivery of mail, managing customer databases, integrating geographic information systems and more.

This blog explores what address parsing is and why it presents such unique challenges.

Discover the intricacies behind making sense of seemingly simple address data and why getting it right is more complicated than it first appears.

TL;DR

Address parsing involves breaking down addresses into their individual components (like street name, city, state, and postcode/ZIP code) to make them understandable for computers.

It’s challenging due to variations in address formats, international differences, ambiguous elements, complex building details, and lack of standardisation.

Despite these difficulties, commercial address parsers achieve high accuracy, and emerging machine learning techniques offer potential for developing custom solutions.

What is Address Parsing?

In essence, address parsing is breaking down and identifying the individual components of an address to make it more understandable and usable for computers. This process ensures that each part of the address is correctly identified, interpreted and standardised for greater accuracy in subsequent applications.

Let’s take a letter that you receive in the mailbox.

On the front, there’s a block of text with your name, street address, city (or suburb or town), state, and postcode (or ZIP code). All these combined tell the postman where to deliver the letter.

Now, let’s say you have a robot assistant, and you want to teach it to understand and organise this information.

You’d instruct the robot to recognise the different parts of the address: This part is the person’s name. This is the street they live on. This part tells us the city, and so on.

Address parsing is like teaching the robot to recognise and separate these individual parts of the address. So, instead of seeing one big block of text, the robot (or computer program) sees the address as different pieces of information:

  • name,
  • street,
  • city,
  • state, and
  • ZIP code/postcode.

This helps computers and software understand and manage addresses more efficiently, just like how you can easily tell apart the street name from the city when you look at the address on a letter.

Why is Address Parsing Difficult?

Address parsing is difficult because addresses vary greatly in format and structure, both within and across countries. Ambiguous elements (e.g., “St.” for “Street” or “Saint”), complex building details, misspellings and multiple languages add to the challenge.

Additionally, addresses often change due to renaming or updates, and there is very little standardisation in how people enter addresses.

These factors make it hard to create a parser that can accurately interpret all possible address variations.

These are some examples that demonstrate the complexity involved. 

Example 1

Address = 64 YORK STREET SYDNEY NSW 2000.

  • 64 = Street number,
  • YORK = Street name,
  • STREET = Street type,
  • SYDNEY = Suburb,
  • NSW = State,
  • 2000 = Postcode

Done, why do people tell me it is difficult….?

 

Example 2

Address = 6/64 THE BOULEVARDE STRATHFIELD NSW 2135

  • 6 = Unit number
  • 64 = Street number
  • THE = Street name
  • BOULEVARDE = Street type
  • STRATHFIELD = Suburb
  • NSW = State
  • 2135= Postcode

Wait, the street name is “THE”?
It should be the “THE BOULEVARDE”!
Boulevarde is a street type as well, but not in this instance! We need a rule for that!

 

Example 3

Address = WTC BLDG A / TWR 4 MATTHEW FL LEVEL 1 18-38A SIDDELEY ST, DOCKLANDS VIC 3008

This address is significantly more difficult to parse than previous examples, however the address still includes many prefixes that can assist with parsing.

It is not uncommon for many of these prefixes to removed to look more like this address:

Address = WTC A / TWR 4 MATTHEW 1 18-38A SIDDELEY ST, DOCKLANDS VIC 3008

Without the BLDG and LEVEL prefixes, we now have additional complexity to deal with.

Challenges with Address Parsing

  • Variability in formats
    Addresses can be written in numerous formats.
    For instance, “123 Maple St. Apt 4B” and “Apt 4B, 123 Maple Street” represent the same location but are formatted differently.
  • International differences
    Different countries have different address structures. What’s common and straightforward in one country might be unusual in another. For instance, some countries might include districts or regions in their addresses, while others don’t.
  • Ambiguous elements
    Some parts of an address can be confused for others.
    For instance, “St.” could be short for “Street” or “Saint.”
    Without context, determining the correct interpretation can be tough.
  • Complex building details
    Addresses can have complex unit numbers, building names, floor numbers, and so forth.
    Parsing these details correctly, especially when they’re in non-standard formats, can be difficult.
  • Misspellings and typos
    People often make mistakes when entering addresses. A parser needs to be robust enough to handle and possibly correct common misspellings or recognise when an address might be invalid.
  • Multiple languages and scripts
    In multilingual countries or regions, addresses might be written in different languages or scripts. Parsing these requires the program to be aware of multiple linguistic structures.
  • Historical changes and inconsistencies
    Cities change, streets get renamed, postal codes get updated. An address parser needs to be updated regularly to account for these changes, or it should be robust enough to recognise and possibly map outdated addresses to their current counterparts.
  • Abbreviations and Synonyms
    There are multiple ways to refer to the same thing in addresses. For example, “Avenue” might be written as “Ave,” “Av,” or “Avnue.” A parser must recognise all these variations as referring to the same concept.
  • Lack of standardisation
    Unlike some data types where a strict format can be enforced, addresses are often entered by users who have no idea about the backend system’s preferred format.
  • Embedded information
    Sometimes, addresses can contain extra information that’s not strictly part of the address but is crucial for delivery, like instructions or landmarks.
Address block on a letter

Is Accurate Address Parsing Possible?

Most commercial address parses achieve parsing accuracy at a rate of 97/98%+.

They achieve this through constant development, testing and refinement of their software over many years.

Is it possible to build your own address parsing solution and achieve similar results?

Maybe.

New capabilities and accessibility of machine learning algorithms mean self-developed address parsing solutions may be able to produce results that are acceptable for your use case. But it is worth noting, the solution won’t be easy to develop and there will be inaccuracies. You should carefully weigh up the effort to develop an address parsing solution vs buying a solution off the shelf.

 

Address Parsing Software Providers

Australia:

  • Geoscape Australia: Provides geospatial data solutions, including address parsing and geocoding for Australian addresses.
  • Precisely: They offer global solutions, including for Australia, in the realm of data quality and address management.
  • Equifax Australia: Offer address cleansing and geocoding solutions.

USA:

  • SmartyStreets: Offers address validation, geocoding, and parsing primarily for the U.S. but also internationally.
  • Melissa Data: Provides data quality solutions, including address validation, correction, and parsing for the USA and other countries.
  • Pitney Bowes: Global solutions, including for the U.S., in data quality and address management.

Canada:

  • Canada Post: Their AddressComplete solution provides parsing, validation, and autocomplete for Canadian addresses.
  • DMTI Spatial: Offers Canadian geospatial data solutions, which include address parsing and validation.

UK:

  • PCA Predict (Loqate): Provides address lookup, validation, and parsing solutions predominantly for the UK but also globally.
  • Allies Computing: Their PostCoder web service offers address lookup and validation for the UK and other countries.
  • Royal Mail: They have solutions for address validation and parsing for UK addresses.

It’s worth noting that many of these providers offer services for multiple countries, not just the ones listed under their respective headers. For example, a company that provides services in the USA might also cater to UK or Australian addresses.

When considering an address parsing provider, it’s essential to check if they cover the specific regions and countries you need, and if they offer the depth of functionality (e.g., address validation, geocoding, etc.) that your project requires.

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