EP. 1454 HOW MANY UNITS IS TOO MANY IN YOUR SUBURB! DEPTH OF MARKET

Ever wonder why some properties sell for premium prices while seemingly identical ones struggle to find buyers? The answer often lies in a concept real estate professionals call "depth of market" – and it might be the most underappreciated factor in property pricing today.Depth of market refers to the absorption rate of properties in a specific area – literally how many units a suburb can sell each month. Whether you're a developer planning your next project or a homeowner timing your sale, understanding this concept can have more impact on your bottom line than broader market trends.Through our memorable "banana analogy," we illustrate why even the most attractive discount won't move excess inventory when demand remains constant. We explore why developers must strategically stage sales across pre-construction, building, and completion phases rather than flooding markets with inventory. For property owners, we reveal why new development projects might actually boost your second-hand property's value by creating a price ceiling and value perception in buyers' minds.The most fascinating insight? Timing your property sale when similar properties are scarce can net you significantly higher returns – we call this the "banana bump." Just as Rolex masterfully creates artificial scarcity to maintain premium pricing, property sellers can leverage market depth knowledge to maximise returns. Listen now to discover how understanding depth of market could be your key to smarter property decisions and superior financial outcomes.