Industry Analysis & Industry Trends
Real estate agents did not have much time to catch a breath over the past five years, as the residential property market performed exceptionally well. Supported by government incentives at the beginning of the period and then fuelled by decreasing interest rates, housing prices rose, despite turbulent economic conditions. This was more than enough to offset pressures on sales commissions. The commercial property market was more flat. This was caused by volatile business confidence and subdued economic conditions. Overall, industry revenue is forecast to increase at an annualised 1.2% over the five years through 2014-15 to reach $10.7 billion. In 2014-15, industry revenue is forecast to grow by 2.7%.
Within the industry, competition remains fierce... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has low barriers to entry. Initial capital outlays are low and there is no need to hire staff for a small business. The largest barrier to entry is lack of reputation and presence. There is significant competition in the industry, and it is imperative to develop a referral base and centres of influence in order to build a critical mass of customers and sales.
Geographical boundaries may also represent a barrier to entry. Prospective buyers of properties tend to concentrate their search within a localised area. Established firms can have expertise within defined areas. These local markets are generally catered for by a small number of firms and it can be difficult for a new entrant to penetrate... purchase to read more