Is some property reporting like throwing darts at a dart board?

Starting this week, I thought I might share with you something you really ought to know – the lag times between a property selling and its transaction record ultimately making its way to the various data reporters via the various state land title offices.

What is it’s relevance, you may ask?

It has a direct bearing on the compilation and timeliness of various house price series to the point that preliminary data is just that – preliminary data. And, whether we like it or not, revisions in house price indexes are absolutely vital.

Of course, I think it also proves that unrevised daily house price indexes are in no way more accurate than throwing darts at a dartboard.

The underlying data of the below charts comes from the various land titles offices around the country.

It was updated and sent to us on the 3rd of June 2013 and represents all records that came from the state land titles offices during the month of May.

The charts represent effectively a distribution curve of lag times between the date a property was sold at contract (exchange date) and the date the record was sent from the land titles office.


Firstly, here is N.S.W:

Is some property reporting like throwing darts at a dart board?

Of the 12,736 sales records sent through during the month of May, the average lag time was 110 days, meaning most of the records sent throughout May actually represented sales that happened in March, February or even earlier.

Just 46 records were reported through within 15 days of the exchange date.  In contrast there were over 544 records that had over a 300 day lag.


Next, Queensland:

Is some property reporting like throwing darts at a dart board?

Source: Dept. of Environment and Resource Management QLD, SQM Research

In Queensland, there were 9534 properties reported through during May with an average lag time of 91 days.

In this case, just 15 properties were reported within 15 days of the property being exchanged. In contrast there were 235 properties that had over a 300 day lag.


And lastly Victoria:

Is some property reporting like throwing darts at a dart board?

Source: State of Victoria, SQM Research

The average lag time was a staggering 221 days and that was after presuming that anything with over 2000 days was an error in the data sent.

Many of those with extended lag dates of over 300 days were units. No doubt ones where the property has taken years to settle due to extended delays in constr; SQM uction.

And note, there was just ONE record that were reported within 15 days of the property exchanging contracts. JUST ONE PROPERTY.

Perhaps now you can see just one of the reasons why I seriously question this daily index from RP Data.

To be fair in all this, I know all reporting bodies including ourselves, receive data from other sources including real estate agents.

However, compared to the total sales volumes that come from the state government departments, these other sources only represent a fraction of all sales that took place. Needless to say, data reporting needs to be cleaned up as the current state of affairs is appalling.

More on all this next week including the data from other states.


Subscribe to SQM Research’s weekly newsletter and peruse a our free research data at SQM Research



Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.

Louis Christopher


Louis is recognised as one of Australia’s most respected and impartial research property analyst. He has extensive knowledge and experience of property and is regularly quoted in the media on his insights and is director of SQM Research.

'Is some property reporting like throwing darts at a dart board?' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts