Want to find suburbs with big upside before they hit every media headline? Forget guessing games and past performance charts—savvy investors use real-time property data to spot where demand is building and supply is tightening.
In this guide, we’ll break down the three key metrics you should track—inventory levels, days on market, and vacancy rates—to identify high-growth suburbs early and make smarter investment decisions based on trends, not hype.
Why Data-Driven Property Selection Beats Speculation
Smart property investing is about timing and evidence—not gut feel. While the media tends to focus on where prices have boomed, seasoned investors are more interested in where prices will boom next.
By focusing on leading indicators, you can spot suburbs on the brink of growth and get in while prices are still affordable.
1. Inventory Levels: Is There Too Much or Too Little on the Market?
What it tells you:
Inventory levels measure how many months it would take to sell all current listings at the current sales pace.
Formula example:
If 50 homes are for sale and 25 sell each month, that’s 2 months of inventory—a sign of a tight, high-demand market.
| Inventory Level | What It Means |
| Under 4 months | Seller’s market – demand outpacing supply |
| 4–6 months | Balanced market – steady price movement |
| Over 6 months | Buyer’s market – more supply, less urgency |
Investor tip:
Falling inventory over time = more competition, faster sales, and likely price growth on the way.
2. Days on Market (DOM): How Fast Are Properties Selling?
What it tells you:
DOM tracks how long properties sit on the market before they sell. The shorter the timeframe, the hotter the demand.
| Days on Market | What It Suggests |
| Under 30 days | Strong demand – buyers are moving fast |
| 30–60 days | Balanced – moderate growth likely |
| Over 60 days | Weak demand or overpricing – expect slower sales |
Example:
If a suburb’s DOM drops from 50 days to 25 in one quarter, that’s a clear sign buyer activity is heating up.
Investor tip:
Track DOM over time—consistent drops mean demand is building faster than supply.
3. Vacancy Rates: Is the Rental Market Tight or Struggling?
What it tells you:
Vacancy rate is the percentage of rental properties currently sitting empty. It’s a must-watch if rental income is part of your strategy.
| Vacancy Rate | What It Means |
| Under 2% | Tight rental market – high demand, rising rents |
| 2–3% | Balanced – healthy conditions |
| Over 3% | Oversupplied – risk of lower rents and delays |
Investor tip:
A falling vacancy rate paired with rising rents is a strong indicator of a suburb with solid investment potential.
The Power of Combining Metrics
While each metric tells its own story, the real value comes when you put them together. You’re looking for suburbs with:
- Falling inventory levels
- Shortening days on market
- Tightening vacancy rates
Example scenario:
- Inventory drops from 6 months to 3
- DOM drops from 45 to 25 days
- Vacancy rate falls from 3.2% to 1.7%
That’s a suburb under pressure—demand is rising, supply is tightening, and prices are likely to follow.
Don’t Just Look at a Snapshot—Track Trends Over Time
Looking at one month of data won’t cut it. You want to see movement over time, ideally across multiple quarters.
Best practices:
- Compare data quarterly to smooth out monthly fluctuations
- Use tools like SuburbsFinder, CoreLogic, or ABS reports
- Benchmark emerging suburbs against recent boom areas to spot similar patterns
Overlay Property Metrics With Local Drivers
Data is the foundation—but context matters too. Once you find suburbs with improving metrics, ask:
- Is there population growth driving demand?
- Are there infrastructure projects (schools, rail, hospitals) boosting liveability?
- Is the local employment base growing? Think major retail hubs, business parks, or education precincts.
Investor tip:
Suburbs with strong fundamentals and tightening metrics are your sweet spot for long-term growth.
Case Study: Picking the Right Suburb With Data
An investor compares two similarly priced suburbs:
| Metric | Suburb A | Suburb B |
| Inventory | 5 months (was 7) | 7 months (was 6) |
| Days on Market | 30 days (was 50) | 55 days (was 40) |
| Vacancy Rate | 1.7% (was 2.8%) | 3.5% (was 3.2%) |
What the data says:
Suburb A is improving across the board—supply is falling, demand is rising, and rental demand is heating up. Suburb B is moving in the wrong direction.
Smart move: Invest in Suburb A before the market catches on.
Back Your Investment Decisions With the Right Data
If you want to find the next high-growth suburb before prices surge, stop relying on headlines or hearsay. Look for converging signals across key metrics like inventory levels, days on market, and vacancy rates—then overlay that data with real-world fundamentals like infrastructure, population growth, and employment hubs.
By staying ahead of the curve and tracking trends over time, you’ll position yourself ahead of the market, not behind it.
Want help analysing the data or identifying suburbs with strong upside potential? I can help you pinpoint locations where the numbers—and the fundamentals—line up for long-term growth.
