capital growth potential

The demand for houses in Port Macquarie exceeds the available supply. Prices may continue to rise above the market average.

Michael Fuller | Founder, Boomscore.com.au

A home is not just a reflection of our values and lifestyle. It's how we preserve and grow our wealth for the future. The Ocean Estate is not just a statement in relaxed coastal living, it is also positioned in a prime location in Port Macquarie.

The market data for Port Macquarie suggests capital growth will continue above the market average and certainly above the majority of suburbs countrywide.

Ocean Estate itself is considered a 'better market' within Port Macquarie with the prospect of even better capital growth.

Demand to Supply Ratio

67
Port Macquarie Boomscore

Buyers must act fast with few properties available to meet demand in Port Macquarie. Sellers will get a good offer soon. Expect good capital growth in the near future

more about Boom Score

Boomscore is uses sophisticated big data algorithms to compare and rank 15,000 suburbs (micro property markets) by their price growth potential. Each suburb is compared against 8 recognised supply and demand property market indicators to derive the ratio of demand to supply for units and houses. The great demand exceeds supply the higher the Boom Score.

National

53

NSW

61

Port Macquarie

67

DEMAND TO SUPPLy Ratio trend

The Boom Score for Port Macquarie is 67 / 100. 
This means there is more demand for properties in Port Macquarie relative to the number of properties available for sale. The upward trend in the summary score indicating the ratio of demand to supply suggests prices will continue to rise at a solid pace. Additionally, Port Macquarie ranks in the top 5% of locations country-wide for capital growth potential.

The facts - the data - suggests that delayed purchases will be costly to the property buyer in the near future with increased prices and foregone capital growth.

The Boom Score: or the demand to supply ratio for Port Macquarie is trending up meaning demand is growing relative to supply which usually pushes prices up.

The Boom Score for Port Macquarie is calculated using 8 market indicators including the following indicators

stock on market percent

Stock on Market Percentage is the percentage of properties for sale in a particular area as a proportion of the total number of properties in that area

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The lower this percentage figure for a suburb, the less properties are for sale in that suburb as a proportion of the number of properties in the area. A low Stock on Market Percentage means that properties are tightly held by owners and snapped up by buyers when they do come on the market.

The number of properties available for sale relative to the number of properties in Port Macquarie is trending lower from a tightly held position which is putting upward pressure on prices.

stock on market percent trend

Online Search Interest

Stock on Market Percentage is the percentage of properties for sale in a particular area as a proportion of the total number of properties in that area

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For example, if there are 20 properties listed online for sale in a suburb and there were 250 people searching for property in that area, then the Online Search Interest is 300 divided by 20 = 15.

The higher this figure, the greater the demand compared to supply, and the more likely it is that property prices will go up in that area.

The number of people searching online per property in Port Macquarie has grown by 350% over two years which is considerably higher than the NSW average. This indicates demand is growing year on year.

trend in online property portal visits

Days on Market

Days on Market is the average number of days a property takes to sell. That’s the number of days from when it is listed for sale until the time it is recorded as sold.

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If property is selling fast in a particular suburb, then this is a good indication that there is a high demand for properties in that area. The lower the Days on Market figure (i.e. the quicker property sells), the higher the demand for property. And the higher the Days on Market figure (i.e. the longer it takes to sell), the lower the demand for property.

If properties are selling quickly, then buyers are keen to buy in the area and sellers may be able to achieve higher sales prices and this pushes property prices up.

Properties in Port Macquarie are selling in 40 days on average compared to 80 days two years ago. This indicates demand is greater than supply and may put additional upward pressure on prices.

trend in number of days houses take to sell

Vacancy Rate

This is the percentage of rental properties that are currently vacant in a suburb.

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This is the percentage of rental properties that are currently vacant in a suburb. For example, if there are 250 rental properties in a suburb and 5 of them are vacant, then the Vacancy Rate is 5/250 X 100 = 2%.

The vacancy rate in Port Macquarie is currently 0.3% which is very tight. Low vacancy rates tend to put upward pressure on rents followed by upward pressure on prices as investors enter the market.

trend in vacancy rate

Auction Clearance Rate

Stock on Market Percentage is the percentage of properties for sale in a particular area as a proportion of the total number of properties in that area

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For example, if 20 properties were up for auction in a suburb and 15 sold at auction and 5 were passed in, then the Auction Clearance Rate would be 15 / 20 x 100 = 75%.

Real estate agents will often sell properties by auction when the demand for properties is strong, as auctions allow potential buyers to outbid each other and push prices up. But not every property that goes to auction sells. The higher the Auction Clearance Rate percentage, the higher the demand for properties.

Auction are clearing at twice the rate since 2019. The high auction clearance rate in Port Macquaries coupled with the upward trend in clearance rates suggests demand is growing steadily which may lead to further upward pressure on house prices.

trend in auction clearance rate

SCOTT MATTHEWS   0412 466 798

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