What is the Australian Statistical Geography Standard (ASGS)?

What is the Australian Statistical Geography Standard (ASGS)?

What is the Australian Statistical Geography Standard (ASGS)?

The Australian Statistical Geography Standard (ASGS) is essentially a framework used to classify and organise geographical areas across Australia for the purpose of collecting, analysing, and disseminating statistics.

Mesh Block Changes

Edition 3 ASGS 2021 – Sydney Statistical Area 3 (SA3)
Source: ABS Maps

By organising Australia into a system of statistical areas, the ASGS can be used to perform standardised location-based analysis on things that matter to your business. For example, where your customers live or shop, where your competitors operate, where you have business assets located or where weather patterns are observed.

The ASGS is a detailed way of representing Australia’s geographical diversity in statistical data.

By dividing the country into hierarchical levels of statistical areas, ranging from broad regions to specific localities, it allows accurate and meaningful analysis of various data, including population, economic and environmental statistics – ultimately, to better understand where people live and how communities are formed.

The ASGS was introduced in 2011 to replace the previous Australian Standard Geographical Classification (ASGC).

Sydney CBD SA1 & SA2

Edition 3 ASGS 2021 – Sydney Central Business District (CBD) Statistical Area 1 (SA1) and Statistical Area 2 (SA2).
Source: ABS Maps

Sydney CBD SA2 & SA3

Edition 3 ASGS 2021 – Sydney CBD Statistical Area 2 (SA2) and Statistical Area 3 (SA3).
Source: ABS Maps

Sydney CBD SA3 & SA4

Edition 3 ASGS 2021 – Sydney CBD Statistical Area 3 (SA3) and Statistical Area 4 (SA4).
Source: ABS Maps

Updates of the Australian Statistical Geography Standard (ASGS)

The ASGS is revised and refreshed every five years to reflect changes in the population, demographics, the country’s development and geographic boundaries to ensure it remains relevant and useful for statistical purposes.

The third edition, linked to the 2021 Census, began rolling out in July 2021 and includes updates to various geographic categorisations, ending with the Remoteness Structure in March 2023.

The Australian Bureau of Statistics (ABS) oversees the ASGS and reviews it to ensure it meets current needs, incorporating feedback from public consultation. Additionally, they offer the online tool, ABS Maps, for exploring and comparing these statistical areas.

ASGS Edition 3 hierarchy of statistical areas

The Australian Statistical Geography Standard (ASGS) is represented through a hierarchical framework of statistical areas. 

The ASGS is split into ABS and non ABS Structures. Of these, ABS Structures are geographies designed by the ABS for the purposes of releasing and the analysis of statistics.

The hierarchy is made up of several nested levels, which enables a flexible and consistent approach to understanding and managing geographic data. 

Here is the ASGS Edition 3 Structures as published by the Australian Bureau of Statistics:

 

Main Structure and Greater Capital City Statistical Areas

  • Mesh Blocks: The smallest geographic unit, designed to cover all of Australia without gaps or overlaps. Mesh Blocks are the building blocks for larger statistical areas. Read more about Mesh Blocks>
  • Statistical Areas Level 1 (SA1): Groups of Mesh Blocks with populations between 200 and 800 people. They are used in the Census of Population and Housing.
  • Statistical Areas Level 2 (SA2): Aggregates of SA1s, generally with populations between 3,000 and 25,000 people. They represent functional areas that interact socially and economically.
  • Statistical Areas Level 3 (SA3): Groups of SA2s, reflecting regional cities and large urban transport hubs.
  • Statistical Areas Level 4 (SA4): Aggregates of SA3s, representing labour markets or regions with similar socioeconomic characteristics.
  • Greater Capital City Statistical Areas (GCCSA): Represent each of the eight state and territory capital cities.

Special Purpose Regions

Indigenous Structure

  • Indigenous Regions and Areas: Defined to facilitate the statistical analysis of the distribution of Aboriginal and Torres Strait Islander populations. The three hierarchical levels are: Indigenous Locations, Indigenous Areas and Indigenous Regions.

Remoteness Structure

  • Remoteness Areas: Classify areas based on their remoteness from services and population centres. The five remoteness classes are: Major Cities, Inner Regional, Outer Regional, Remote and Very Remote.

Significant Urban Areas, Section of State, Urban Centres and Localities

  • Urban Centres and Localities (UCLs): Define urban and rural areas based on population size and density.
  • Section of State (SOS): SOS groups the UCLs into classes of urban areas based on population size.

  • Classifying urban areas in several different ways is to allow statistical data to be made available to Australian towns and cities and for statistical analysis.

Non ABS Structures

  • Non ABS Structures: These are administrative regions that are not defined or maintained by the ABS. They include eight geographies: Local Government Areas, State Electoral Divisions, Commonwealth Electoral Divisions, Destination Zones, Postal Areas, Suburbs and Localities, Australian Drainage Divisions and Tourism Regions.

What tools can be used for representing and analysing ASGS?

These tools collectively offer a comprehensive approach to representing and analysing ASGS data.

They provide the necessary geographic context and detailed spatial data required for thorough analysis.

A combination of these resources can enable data professionals to enhance their analytical capabilities and produce insightful visualisations to support planning and informed decision making.

 

  • ABS Maps: An online tool provided by the Australian Bureau of Statistics (ABS) that allows users to explore and compare different statistical areas defined by the ASGS.
  • Geographic Information System (GIS) Files: GIS is a framework for gathering, managing, and analysing spatial and geographic data, encompassing a broad range of tools and functionalities. GIS files (formats may include shapefiles, GeoJSON, and KMLare) available for download, allowing for detailed spatial analysis using software like ArcGIS or QGIS.
  • Online Data Portals: Platforms such as the ABS Data Explorer or Australian National Map provide access to a variety of geographic data layers. This allows users to visualise and download data in different formats for analysis.
  • Statistical and Data Visualisation Software: R, Python (with libraries like Geopandas and Folium), and Tableau can be used to import ASGS data for advanced statistical analysis and visualisation, enabling the creation of custom maps and visual representations of the data.
  • Spatial Databases: Databases such as PostGIS that are optimised for storing and querying spatial data and facilitates efficient management and analysis of large geographic datasets.
  • Printed Maps and Documentation: Detailed maps and explanatory notes published by the ABS, outlining the boundaries and characteristics of each statistical area.
Analysis

What is the ASGS used for?

One of ASGS’s primary uses is for the Census, the study of Australia’s population.

The ASGS is integral to Australia’s Census as it defines geographic boundaries, facilitates detailed data collection and enumeration, enables comprehensive data analysis and reporting, and supports informed decision-making, resource allocation, policy making and planning by government agencies.

However it is also used broadly by the Australian Bureau of Statistics (ABS) and other entities.

The ASGS is versatile enough to support a wide array of activities involving the accurate collection of geographic and statistical data across Australia, making it a fundamental element in analysis.

 

  • Detailed demographics: The ASGS allows businesses to segment customers based on detailed geographic and demographic data. By using Statistical Areas (SA1 to SA4), companies can identify distinct customer groups within specific regions, tailoring marketing strategies and product offerings to the unique characteristics of each segment.
  • Targeted marketing: Businesses can use Mesh Blocks or SA1 regions to create hyper-local marketing campaigns, ensuring that promotional efforts are targeted towards areas with the highest potential for engagement and conversion.
  • Real estate and urban planning: The ASGS provides a robust framework for organising geographic areas to satisfy a broad range of uses in real estate. It can be used to enhance analysis of localities for a better understanding of local demographic through to reporting of property-related data. Examples include: analysis of housing trends, planning of urban developments, identifying growth areas or conducting property valuations with a clear understanding of geographic distinctions.
  • Accurate market data aggregation: The hierarchical structure of the ASGS enables businesses to aggregate and report market data accurately across various geographic levels, from local neighborhoods (SA1) to larger regions (SA4). This helps in understanding market trends and consumer behavior across different areas.
  • Market trend analysis: By comparing data across different Census periods using consistent ASGS boundaries, businesses can track market trends and demographic shifts, aiding in long-term strategic planning and investment decisions.
  • Business and market analysis: Companies leverage the ASGS for market analysis, site selection and strategic planning as it can help businesses understand demographic trends and geographical distributions of markets to inform targeted marketing and business expansion strategies.
  • Retail demand forecasting: Retailers can use ASGS data to forecast demand for products in different geographic areas. By understanding population density, age distribution, and income levels within mesh blocks or SA2 areas, businesses can optimise inventory levels to match local demand.
  • Supply chain efficiency: The ASGS framework helps retailers plan efficient distribution routes and manage stock levels more effectively, ensuring that products are available where they are needed most without overstocking or stockouts.
  • Competitor analysis: Businesses can use ASGS-defined regions to map out the geographic locations of competitors, analysing their market coverage and identifying potential gaps or opportunities for expansion.
  • Market share estimation: By integrating ASGS data with sales and demographic information, companies can estimate market share within specific regions, helping to assess competitive strengths and weaknesses.
  • Environmental risk assessment: The ASGS allows for precise mapping of environmental risks such as flood zones, bushfire-prone areas, and pollution levels. By overlaying environmental data with population and infrastructure data from the ASGS, businesses can assess the potential impact of environmental risks on their operations.
  • Environmental regulation compliance and planning: Companies can use ASGS data to ensure compliance with environmental regulations and to plan mitigation strategies for at-risk areas. This helps in safeguarding assets and maintaining operational continuity.
  • Research and academia: Researchers and academics use the ASGS for conducting spatial analysis and regional studies, allowing detailed investigations into socio-economic, environmental, and demographic conditions across different regions.

The essential role of ASGS

The Australian Statistical Geography Standard (ASGS) plays a foundational role in statistical geography, allowing users to analyse and visualise statistics based on location. Its extensive applications, regular updates, and strong endorsement by the ABS ensure its implementation and integrity.

As such, the ASGS remains an essential framework and a mainstay in Australian geographic and statistical analysis—an indispensable tool for ensuring the accuracy, consistency, and relevance of geographic data across various domains.

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Understanding the Real Estate Market: Key Metrics and Statistics

Understanding the Real Estate Market: Key Metrics and Statistics

Navigating the real estate market can be complex, whether you’re a buyer, seller, investor, or industry analyst. One of the keys to understanding this dynamic market is to familiarise yourself with the various metrics and statistics that measure real estate activity.

These indicators provide invaluable insights into market trends, pricing dynamics, and overall economic health.

We’ll cover some of the most common metrics used in real estate analysis to help stakeholders better understand this dynamic market.

1. Sales Volume

Sales volume indicates the total number of properties sold in a specific period. This metric is a primary measure of market activity. Relatively high sales volumes often point to a robust market, while lower volumes may signal a slowdown.

A number of organisations offer this data in Australia, usually by state or even postcode for a laser focused lens on particular areas of interest:

  • HtAG
  • CoreLogic
Property sales

2. Median Sale Price

The median sale price identifies the middle value in a list of property sale prices. This metric offers a realistic snapshot of the market’s pricing level, avoiding the skewing effect of extremely high or low prices.

3. Average Sale Price

The average sale price is calculated by dividing the total value of all sales by the number of transactions.

The average sale price provides a broader perspective of the market’s general pricing trends.

For sale

4. Days on Market (DOM)

As its name suggests, DOM tracks the number of days a property spends on the market before being sold.

Shorter DOM periods typically indicate a seller’s market, whereas longer DOMs suggest a buyer’s market.

5. Listing Inventory

Inventory is the count of the number of properties which are actively marketed and listed for sale, also referred to as “active listings” or “homes for sale.”

Understanding the number of properties available for sale at any given time helps gauge the supply side of the market equation.

6. Absorption Rate

The absorption rate is a real estate metric that assesses how quickly homes are being sold in a particular market over a set period. It is determined by dividing the number of homes sold during that time by the total available homes.

Additionally, this formula can be flipped to determine how long it would take to sell the existing supply.

This rate measures the speed at which the market is ‘absorbing’ or selling off its current inventory, offering insight into market demand.

7. Price per Square Metre (or Square Foot)

This metric is calculated by dividing the sale price by the property’s total square metres (or footage).

This metric is handy because it allows for a direct comparison between different properties of varying prices and floor space.

8. Rent Prices and Yields

Rental yield is calculated by subtracting the total costs of your investment from the income generated by renting out your property. Typically represented as a percentage, a higher yield indicates increased cash flow and a more favourable return on investment.

For investment properties, monitoring rent prices and yields (rental income as a percentage of property value) is crucial.

Soil

9. Foreclosure Rates

Foreclosure happens when a lender seizes a property because the person who took out a mortgage fails to make the required payments.

Foreclosure involves a legal procedure where the property’s title is transferred from the homeowner (borrower) to the lender, who then sells the property.

The purpose of selling the property is for the lender to recover the outstanding loan amount.

The process is usually lengthy and doesn’t simply occur because a homeowner misses just one repayment; it occurs with more substantial lapse in payments.

The number of properties in foreclosure can indicate both the health of the real estate market and broader economic conditions.

10. Mortgage Interest Rates

Mortgage interest is the cost a lender charges for taking the risk of lending you money. The mortgage interest rate directly affects your repayments – the higher the interest rate, the bigger your payments will be.

This is why mortgage interest rates on home loans significantly influence buyer demand and market dynamics.

11. Construction Starts

The number of new building projects indicates future supply and market confidence.

The Proptech Cloud’s data listing contains statistics for Australian construction activity helpful for planning, demand forecasting and construction cycle timing.

The Australian government publishes building activity visualisations which shows dwelling construction trends over time, and the Australian Bureau of Statistics provides estimates of value of building work and number of dwellings commenced, completed, under construction and in the pipeline.

Soil erosion

12. Building Permits Issued

Building permits are papers which confirm that a planned building follows the rules set by authorities. It’s a written approval from a building surveyor, either private or municipal.

This statistic reflects the level of future construction activity and developer sentiment.

13. Vacancy Rates

Vacancy rates indicate how many rental homes in an area are currently empty and available for rent. To find this rate, take the number of empty homes in that area and divide it by the total number of homes available for rent.

In rental or commercial properties, the percentage of unoccupied units at a given time can signal market health.

14. Capitalisation Rate (Cap Rate)

Especially relevant in commercial real estate, the cap rate helps estimate the return on an investment property.

To find the cap rate, take the property’s yearly income (after subtracting expenses) and divide it by the property’s value. This rate is useful for comparing how good of an investment a property is compared to others in the same area.

If a property has a higher cap rate, it means there’s more risk involved. And usually, when the cap rate is higher, the property’s value is lower because its yearly income is less.

Biodiversity

The Use of Property Metrics and Statistics

These metrics provide distinctive perspectives on the real estate market. Depending on your role—whether you’re a buyer, renter, investor, realtor, or other stakeholder in real estate—each metric carries unique value, caters to different requirements, and provides diverse insights.

By understanding and analysing these indicators, stakeholders can make more informed decisions, predict market trends, and grasp the market’s broader economic implications.

Regardless of whether you’re a seasoned professional or a curious observer, keeping an eye on these statistics is key to understanding the complexities of the real estate world.

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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