Industry Analysis & Industry Trends
Over the past five years, the Real Estate Agency Franchises industry has face a turbulent period. Just after the industry bounced back strongly from the global financial crisis, revenue fell sharply, as interest rates normalised and confidence fell. Consumers focused on paying down debt rather than increasing it, resulting in weak growth of dwelling commencements and a fall in housing prices. In response, interest rates were cut to a record low, and house prices and housing transfer numbers increased accordingly. The industry has benefited from these factors, with a period of strong revenue growth. As a result, industry revenue is expected to rise at an annual rate of 1.8% over the five years through 2014-15. In 2014-15, revenue is forecast to rise by 3.3% to $5.7 billion... purchase to read more
Industry Report - Starting a New Business Chapter
The Real Estate Agency Franchises industry is subject to low barriers to entry, largely due to the relatively low costs of entry. Initial capital requirements are largely restricted to purchasing or leasing a premises or shopfront and are generally not considered prohibitive. Other start-up costs include state government licensing regulations that stipulate minimum experience and education requirements, which can inhibit the entry of firms or people engaged in complementary professions (such as solicitors and accountants).
A potential barrier for entrants could be the intensity of competition in the industry. The incumbent players have established brand names, clientele and skilled staff that could take new entrants a while to acquire... purchase to read more