The property market may seem like an overwhelming mix of numbers, legal, jargon, cycles and advice. Knowing what the property market is doing and where it is heading is a challenge, but we believe in learning as much as possible. Read the statistics, watch out for articles on properties or the economy, talk to experts and learn as much as you can.

The Emblem Collection Group, will begin sharing with you, the five most important ways to identify a healthy property market so that you can have your investment choices under control.

1. The first thing to look for is the number of property sales. When it comes to property development there are multiple stages, beginning with acquisition, through to planning, civil works, roads, and finally registered titled lots ready to be transferred to the end user. If developers are selling all of their stock before everything is complete, that is a good sign that the market is warming up. If there are thousands of completed properties sitting there unsold that means the market is slow.

2. When the market is healthy, you will be able to see the media/press increasingly reporting good news and numerous property stories. As the growth cycle moves upwards, developers are the first to act. Following that, around 12 months later, the media catch up and start reporting. This pushes the market up to its peak because that is when your everyday investors catch up and open their wallets. Keep an eye out for the ‘b’ word in the press (that’s ‘bubble’), because that is a good sign that the market is hot or at the very least overheating.

3. Underlying to any market movement is the economy; therefore, it is wise to keep an eye on your country’s economy. If the economy is flat, depending on how flat and why, then the property market may sit flat too (unless you are in London, that many foreign investors see as a safe place to invest in and a flat economy was never a hindrance or an obstacle, even during financially difficult times). Additionally, watch out for the rental market. In particular look for 2 things: low rental vacancy rates in a market and/or for rising rental prices. Simply, due to the nature of supply and demand, the rising cost of rentals equals an increased need for housing. An increased demand for property means a healthy market.

4. When the market is booming, development and government incentives begin to dwindle. Incentives, like the First Time Home Buyers Grant and many others, are put in place to get people into the property market, driving the economy up, reducing unemployment and reigniting the industry in general. So when these incentives are harder to come by, that means the property market is healthy.

5. If you’re selling a property, and if once you have listed it you immediately receive multiple offers, that is a sign of a healthy market. This is tracked via a mechanism called average days on the market. Alternatively, if you are selling at auction, you will receive crowds of people attending.

It is important to note that due to the nature of the property market these five identifiers will not always line up at once, but if you have got three or more of these, then the market is fairly healthy, which is great news for investors.