Industry Analysis & Industry Trends
Over the past five years, the Real Estate Services industry has had to endure some property market uncertainty. Revenue is forecast to grow at an annualised 0.9% over the five years through 2013-14. This low growth is due to reduced demand for properties from investors, commercial businesses and home owners. Deteriorating economic conditions, rising debt levels and tighter access to finance have directly affected property investment.
The global financial crisis led to a significant fall in demand for all types of property. Some efforts were made to reinvigorate demand, primarily the progressive period of interest rate cuts from September 2008 to April 2009 and the introduction of the First Home Owner Boost, which was in place between October 2008 and December 2009... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital investment required to operate a property unit varies depending on the size, location and sector the real estate agency operates in. By comparing the ratio of wages to depreciation, it is possible to determine the level of capital used for every one unit of labour and thus determine how much capital is used in production as opposed to labour. By analysing the industry's cost structure, IBISWorld estimates that for every dollar spent on capital, $23.20 is spent on labour, indicating that this industry has a high labour intensity and low capital intensity.
This is in line with the operation of real estate agencies, which include a high level of personal contact with clients and other parties (i.e. home owners, buyers and tenants)... purchase to read more