Buying a property is a task that requires careful study and analysis. It’s good to know several methods that we can use to determine if the prospect property is within market standards, or if you need to look someplace else.
There are several ways to determine the demand for property in a certain area. One common method is by using the Median Sales Price, which is the average of sold properties in the area. This is not a foolproof method though, as it only gives you a small sample size, dependent on the number of units sold in the area.
There is another method that we can use, the Median Sales Value. It accounts for the estimated valuation of all units in the area, giving buyers a better perspective on the property’s value and how the properties in the area are performing. Comparing it with the valuation of properties in other areas, it gives buyers first hand information about the property’s performance with its counterparts in the market.
Read more about this on the Property Observer website.