Discover the property lifecycle and how it brings together various sectors such as government, legal, construction, finance, and insurance, while connecting a wide range of professionals.
This infographic offers a high-level overview of the key phases and processes.
In an era where climate change is intensifying the frequency and severity of storms and hurricanes, especially in coastal regions, understanding and quantifying the associated risks is critical.
According to the National Geographic Society, a storm surge is a rise in sea level that occurs during tropical cyclones, which are intense storms also known as typhoons or hurricanes.
The storms produce strong winds that push the water into shore which can lead to flooding and pose a real threat in coastal regions.
To help understand these risks, a Storm Surge and Hurricane Risk Rating score can provide property owners, developers, real estate agents, insurers, urban planners, local governments, buyers and investors with a clear picture of a property’s vulnerability to these natural disasters.
These stakeholders will be conducting their own necessary research, and a risk rating system can offer an indicative metric to guide their decisions.
Understanding storm surge and hurricane risks is crucial for building a resilient society.
Natural catastrophes pose significant challenges, and quantifying these risks can aid in better preparation and prompt responses.
Strengthening homes and incentivising homeowners to invest in property fortification can reduce potential losses. Accurate risk assessments and reliable data can allow insurers to offer discounts for mitigation actions, enhance home resale values, and reveal the increased costs to mortgage issuers due to natural disasters.
Achieving resilience relies on expert understanding of the real estate ecosystem and the benefits of informed mitigation strategies.
The foundation of a risk rating system is a clear and understandable scale, such as 1 to 10, with each number representing a different level of risk.
Establishing specific criteria for assessment is also essential for a well-rounded evaluation.
Several factors contribute significantly to a property’s risk from storm surges and hurricanes:
Assigning appropriate weights to each of the above factors based on its impact on overall risk ensures that the score accurately reflects the property’s vulnerability.
Use expert consultations and statistical analysis to determine appropriate weights, and adjust weights based on real-world data and expert feedback.
Gathering and analysing data, including GIS mapping, climate records and historical event data, is crucial to assigning accurate sub-scores for each criterion. Cross-referencing multiple sources will ensure data accuracy and statistical software can be used for thorough analysis.
By aggregating these sub-scores, considering their respective weights, we arrive at a comprehensive risk rating for each property. Using a formula or algorithm will ensure consistency in calculations. Further validating the scoring system with sample properties will help improve accuracy.
It’s vital to validate and adjust the rating system against historical data and expert analysis to ensure its reliability and accuracy. Regularly review and update the criteria and weights based on new data.
Along with the risk score, offering advice on how to reduce a property’s vulnerability to storm surges and hurricanes can be highly beneficial. Suggestions such as upgrading building materials, improving drainage systems or investing in flood barriers can form a checklist of actionable steps to reduce a property’s vulnerability.
Continuously updating the risk rating system to reflect environmental changes, infrastructure developments and updated data is crucial. This includes regular reviews, incorporating new data and tech advancements can improve the risk rating system.
Stakeholders can create a robust and reliable risk rating system that enhances safety and preparedness in coastal areas.
A well-developed Storm Surge and Hurricane Risk Rating can provide essential information for making educated decisions about property development, insurance and risk management.
As the world grapples with the increasing challenges of climate change, these tools become ever more critical in our collective efforts to build resilient communities.
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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.
“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.
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.
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.
Access Archistar’s Australian Property Planning Rules and understand zoning designations and regulations across the nation.
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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.
Mesh Blocks covering the whole of Australia. Source: ABS Maps
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 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.
Example of Mesh Block change along the border of Queensland and New South Wales. Source: Australian Bureau of Statistics
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).
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.
Mesh Blocks play a vital role in Proptech, geospatial data, and the real estate industry in Australia. Some example uses include:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Auction clearance rates can serve as a barometer of Australia’s real estate market strength, particularly across its major cities.
These rates are generally a superficial gauge of market strength, because private treaty is still the most common means of property sale in some cities. Nevertheless, property predictions can be drawn when auction clearance rates are analysed alongside other factors and data points.
Clearance rates for Australia’s major real estate markets can be helpful for proptechs who leverage data, analytics, and technology to advance various aspects of the real estate industry.
The auction clearance rate typically represents the percentage of properties that sold on its advertised auction date in a specific market versus the number of properties that didn’t sell during a particular time frame (typically a week or month).
There are variations in how clearance rates are calculated and reported, so it’s important to consider this and understand your data provider’s calculations. The variance in calculations means these metrics offer different views and are not interchangeable.
Variations to the Calculation | Calculation | Calculation (%) |
| Basic calculation | Percentage of properties sold on auction date during a particular period (week or month) |  |
| Includes properties sold prior to and during auction | Percentage of properties sold prior to plus on auction date during a particular period (week or month) | |
| Includes properties sold prior to, during and after auction | Percentage of properties sold prior to auction plus on auction date plus after auction date during a particular period (week or month) |  |
Auction clearance rates are a crucial market indicator of real estate activity by gauging the numbers of buyers and sellers in a specific market during a certain time frame.
Generally, higher auction clearance rates indicate a higher buyer demand for property in that market, limited supply of available properties and/or with an increased likelihood of rising price, i.e. a hot market for sellers.
Conversely, low auction clearance rates indicates weak buyer demand, possible over-supply of properties and chance of reduced prices which is more favourable to buyers.
In Sydney and Melbourne, a clearance rate above 70% signals a seller’s market, below 60% suggests a buyer’s market, and 60-70% indicates balance.
But the true significance of auction clearance rates lies in its contextual analysis alongside factors such as listing numbers, days on market, withdrawn auctions, fluctuations and regional disparities.
By tracking these rates alongside additional metrics, analysts can anticipate market direction, and measure buyer and seller confidence.
Auction clearance rates in Australia are reported on a weekly basis.
Some organisations collect data from sales agents and aggregate the data by city and region, such as:
Some news outlets, auction houses and real estate agencies may also publish auction clearance rates for specific regions. Industry reports and analyses related to real estate may also compile this data to provide a comprehensive view into trends.
For anyone involved in or impacted by the real estate market, auction clearance rates are an important indicator of demand levels, market sentiment, and potential shifts in property values. But when comparing available data, its crucial to understand the methodology behind the calculations of auction clearance rates.
Auction clearance rates should be used as part of a comprehensive analysis alongside other property data, localised research, and broader market factors. While auction clearance rates offer valuable insights into the direction of the property market, they are just one of many factors to consider, and a holistic approach incorporating various data points is recommended for a thorough understanding of market conditions.
While not exhaustive, these are a few examples of how auction clearance rates might be used by proptechs and businesses working with real estate data.
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