Here’s my definition of a property market:
Property market: all housing within a commutable distance from the employment centre.
In this definition, the employment centre is any area where there are jobs and can be defined as either an essential business industry or an industrial area. A commutable distance can be classified as about an hour’s travel in each direction, whether that be by car or train. Most employees won’t travel more than an hour to get to their job. Therefore, the property market can be determined as one hour’s travel from that employment centre.
By this description, it’s easy to see that every property market is different even though they are all interrelated. A good example of this would be to look at each state: whenever the capital city booms, you are almost certainly going to see a boom in the surrounding regional area shortly thereafter. A rising tide lifts all boats. They are all still separate property markets but there is somewhat of a knock-on effect when the capital city gets too expensive. People start moving further afield into the regional areas in search of more affordable housing and cost of living.
We see a similar pattern with the capital cities too. When Sydney booms, it’s followed by a boom in Melbourne, then a boom in Brisbane and Perth after that and so on. This is a historically proven trend called financial migration – when a city gets too expensive people move on to the cheaper cities. Learn more about financial migration, download my book below?
GET THE BOOK HERE