It’s an issue never far from the collective Australian psyche – how can we make money out of the property market?

Like gambling, the steep gains are there to be enjoyed by the savvy investor but – as we’ve seen in the capital cities recently – it’s not a game for the faint hearted.

Some of the guessing is about to be taken out of property investment thanks to data analytics.

Researchers at SMART have teamed up with TUDI to study the evolution of the housing market in Australia.

“In Chinese, Tu translates to soil, earth, clay, local and indigenous,” said Julien Mougenot, founding director of TUDI.

“’Di’ translates land, soil, territory. Whilst TUDI is a technology company, the heart of what we do stems from our passions for both technology and property investment.”

He said the firm saw its unfair advantage over competitors as the proprietary technology that is continuously optimising, to provide the most up to date and powerful property investment decision-making insight.

Researchers, led by Dr Johan Barthelemy, are evaluating the usage of artificial intelligence to gain insights into the evolution of the Australian housing market.

“The project involves the evaluation of two different forecasting models,” Dr Barthelemy said.

“One is called ARIMA – Auto Regressive Integrated Moving Average.

“This is a well-known model used in statistics and econometrics.

“The other, LSTM – Long Short-Term Memory – is a recurrent neural network developed for deep learning applications.

“These models are then specifically trained for each suburb to enable them to forecast the market’s evolution.”

The team is also working on the building of probabilistic models and the usage of clustering technics to detect suburbs with similar dynamics. This will then permit the models to autonomously extract insights on market evolution.

Find out more here.