Industry Analysis & Industry Trends
Real estate agents have not had much time to catch a breath over the past five years, as the residential property market has performed exceptionally well. Despite turbulent economic conditions, housing prices rose, supported by government incentives at the beginning of the period and then fuelled by decreasing interest rates. This has been more than enough to offset pressures on sales commissions. The commercial property market has been more flat. This has been 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%.
Competition remains fierce within the industry... purchase to read more
Industry Report - Industry Investment Chapter
The Real Estate Services industry has a low level of capital intensity. For every dollar spent on capital, a further $21.97 is spent on labour. The industry is labour-intensive and relies on human capital for provision of its services. Commissions also play a big role in incentivising employee performance, which further reduces capital intensity. Computer software systems do make administrative tasks easier, but their overall cost is insignificant compared to total wages. Capital intensity is expected to increase over the five years through 2014-15, but only marginally... purchase to read more