Industry Analysis & Industry Trends
Over the past five years, the Real Estate Agency Franchises industry has recovered from a painful period. Towards the start of the period, the industry's major markets all reduced their spending, suffering from the effects of the global financial crisis. Residential and non-residential sales suffered, while demand for rentals increased due to a shift in consumer behaviour. Consumers focused on paying down debt rather than increasing it, resulting in weak volumes of dwelling commencements and a fall in housing prices.
Industry revenue has recovered following the declines of 2008-09 and 2009-10. This has been due to record low interest rates and a rebound in consumer sentiment as woes in financial markets have eased... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a low level of capital intensity, spending an estimated $52.62 on labour for every dollar spent on new capital. Capital intensity is low because industry operators have little need for machinery, plants or equipment compared with other industries. The industry's capital investments are mostly in office equipment, information technology, telecommunications technology and automotive transport. The depreciation costs associated with these capital investments are relatively small in proportion to wage costs. Labour costs are high due to the high level of personal contact with clients and related parties, such as property owners, buyers and tenants.
Capital intensity has increased slightly over the past five years due to improvements in technology... purchase to read more