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 - 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