The Property Market

The purpose of this report is to present an overview of Sydney’s property market through the
statistical analysis of data from 293 properties. Data was obtained through surveys, where each
response includes property type, location, interior size, bedroom counts, price sold of property,
buyer income, owner occupancy, and buyer citizenship.
In order to provide insights into general trends within the property market, this report will
examine the impacts of income, location and property characteristics on property prices and
explore the buyer profile of each property type in order to support Property Inc. in future
consultations.

Part1: Location, Income and Price

Descriptive Stats. Price Sold Buyer Income
Mean 2,068,973 360,928
Median 1,629,768 296,000
Mode 587,510 144,000
Standard Deviation 1,394,441 273,569
Skewness 1.5 2
Table 1.1 Descriptive Statistics on Price Sold and Buyer Income
Table 1.1 shows income and price are positively skewed by 2 and 1.5 respectively. The mean of
price (2,068,973) and income (360,928) are significantly higher than their corresponding mode,
indicating the presence of a few but large observations. Thus, the report uses medians to measure
the central tendency, minimizing distortions caused by outliers.

Relationship between income and price sold

Figure.1.1
Price Sold vs. Income

10000000

9000000

8000000

7000000
PriceSold (AUD)

6000000

5000000

4000000

3000000

2000000

1000000

0
0 50 100 150 200
Buyer Income (AUD) x 10000
 Trends
Figure.1.2
Correlation coefficient of 0.898 is found by
Percentage of Total Sales by Income
establishing a bivariate relationship between price
3% 4%
sold and buyer income. This indicates a strong
positive linear correlation between the movement
11%
of price and income as seen in Figure.1.1. Most
38% observations form a cluster between the price
range $600,000 – $2,000,000 and income range
16% $60,000 – $300,000 with a few notable outliers.
This gives an indication of the general
socioeconomic background of a property buyer in
Sydney, reinforced by Figure.1.2 where 38% had
an income of 45,000 – 219,999.
28%

45,000-219,999 220,000-394,999
395,000-569,999 570,000-744,999
745,000-919,999 920,000 and above

Relationship between location and price

Figure.1.3 Figure.1.4
Price Sold and Buyer Income by Location Percentage of Total Sales by Location
3,000,000

2,500,000 24% 25%

2,000,000
AUD

1,500,000

1,000,000 14%
500,000 23%
- 14%
Eastern Northern Sydney Western Southern
suburbs suburbs CBD suburbs suburbs
Eastern suburbs Northern suburbs Sydney CBD
Median of pricesold Median of TIncome
Western suburbs Southern suburbs

Trends
Figure.1.3 shows location with the highest median price is the CBD ($2,549,340) then Northern
suburbs {NS} ($2,032,392) followed by Eastern suburbs {ES} ($2,011,091). Western suburbs
{WS} and Southern suburbs {SS} fell behind with a median price of ($1,257,420) and
($1,054,570) respectively. Median income followed the same order from CBD ($432,500), ES
($387000), WS ($232000) and SS ($153000). Figure.1.4 indicates the percentage of total sales
by location with ES, SS and NS being the most popular at 25%, 24%, 23% respectively followed
by CBD and WS at 14% each. As the median price of each location differs from the median
price of all Sydney, it can be said location does have an impact on price.
 Part2: Property Characteristics

Figure.2.1 Figure.2.2
Price vs. Property Type Percentage of Total sales by property type
3000000
Median Price (AUD)

2500000 5%
4%
2000000 8%
1500000
41%
1000000
500000
0 42%

Property Type Apartment House Townhouse Villa Other

Trends
Shown in Figure.2.1, price sold varies significantly with property type with houses having the
highest median price at $2,731,680 followed by townhouses ($1,540,770), apartments
($1,116,500), other ($975,500) and then villas at $867,465. Figure.2.2 demonstrates the
percentage of total sales by property type, with houses and apartments equally making most of
the sales at 42% and 41% respectively. Figure.2.2 can also give an indication of the either the
distribution of property types in the Sydney market or buyer demand of each property type.

Figure.2.3 Figure.2.4
Price vs. No. of Bedrooms Interior Size vs. Price
10000000
900
x 10000

8000000
Median Price Sold(AUD)
Median Price Sold (AUD)

800 Eastern Suburbs

700 Northern 6000000

600 suburbs
Sydney CBD 4000000
500
400 Western suburbs
2000000
300
0
200 Southern
suburbs 52-87 87-122 122-157 157-192 192-227
100 Interior Size (m2)
0 Eastern Suburbs Northern suburbs Sydney CBD
1 2 3 4 5 Western suburbs Southern suburbs
No. of Bedrooms

Trends
Figure.2.3-2.4 measure the impact of bedroom count and interior size on median price sold
depending on location. This not only reinforces the trend explored in Part1 but also minimizes
distortions on price caused by location. Figure.2.3 shows a general increase in median price as
bedroom count increases for each location as does Figure.2.4, where median price increases
alongside increasing interior size. There are a few outliers, notably the categories of 4 bedrooms
NS (Figure.2.3) and 157-192 m2 SS (Figure.2.4) where price lowered as bedrooms/ interior size
increase. This is because low frequency of properties in these categories lead to inaccurately
 inflated median price. However, general trend remains consistent indicating dependency between
these two variables and price.
Part3: Buyer Profile

In order to gain a complete picture of the Sydney Property Market there must be an understanding
of the buyer of each property type, thus a descriptive statistical analysis was undertaken of the
buyer Income, amount of Rooms Chosen, whether the buyer was Domestic or International and
whether the buyer Currently Occupies the property or not. This data was categorized by each
property type.

Apartment House Townhouse Villa Other

Income($Dollars)

Count: Count: Count: Count: Count:

119 123 23 13 15
Max: Max: Max: Max: Max:
$705000 $1,849,000 $1,629,000 $568000 $352,000
Min: Min: Min: Min: Min:
$45000 $103,000 $99,000 $568000 $67,000
Range: Range: Range: Range: Range:
$660000 $1,746,000 $1,530,000 $504000 $285,000
Mean (2d.p): Mean (2d.p): Mean (2d.p): Mean (2d.p): Mean (2d.p):
$233,546.22 $522,634.1463 364391.30 $200692.3077 179,066.67
Median (2d.p): Median (2d.p): Median (2d.p): Median (2d.p): Median (2d.p):
$195,000 $464,000 248,000 $130,000 122,000
Mode: Mode: Mode: Mode: Mode:
$144,000 $384,000 167,000 N/A N/A
Standard Dv (2d.p): Standard Dv Standard Dv (2d.p): Standard Dv Standard Dv
$144,056.53 (2d.p): $321,667.07 (2d.p): (2d.p):
$296,772.43 $148,411.81 $100,499.80

Table 1.2 Descriptive Statistics on Income of Buyer categorized by Property Type

Trends
Table 1.2 provides descriptive statistics regarding a buyer’s income per property prize. Firstly,
out of 293 properties buyers 83% of buyers purchased either an apartment or a house, according
to Figure 2.2, of these properties
 Figure 2.5
Percentage of Overseas/Domestic Purchases
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Apartment House Townhouse Villa Other

Percentage of Overseas Purchases Percentage of Domestic Purchases

Figure 2.6
Percentage of Overseas/Domestic Purchases
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Apartment House Townhouse Villa Other

Percentage of Overseas Purchases Percentage of Domestic Purchases

Apartment House Townhouse Villa Other
Number of Bedrooms

9.24% had 1 Bedroom 10.56% had 1 4.35% had 1 15.4% had 1 6.67% had 1
Bedroom Bedroom Bedroom Bedroom
48.74% had 2
Bedrooms
44.53% Had 2 52.17% had 2 46.15% had 2 60.00% had 2
27.73% had 3 Bedrooms Bedrooms Bedrooms Bedrooms
Bedrooms
34.14% had 3 34.78% had 3 30.77% had 3 20.00% had 3
9.24% had 4 Bedrooms Bedrooms Bedrooms Bedrooms
Bedrooms
4.06% had 4 4.35% had 4 0.00% had 4 6.67% had 4
5.04% had 5
Bedrooms Bedrooms Bedrooms Bedrooms
Bedrooms

5.69% had 5 4.35% 7.69% had 5 6.67% had 5

Bedrooms had 5 Bedrooms Bedrooms Bedrooms

Table 1.3 Percentages of Bedrooms categorized by Property Type