Industry Analysis & Industry Trends
Over the past five years, the Real Estate Agency Franchises industry has contracted. Mired by the global financial crisis, the industry's major markets have all but shut down. Residential and non-residential sales have dropped, while rentals have increased due to a shift in consumer behaviour. Consumers have been more focused on paying down debt than increasing it, resulting in lower dwelling approvals and slow growth in housing prices. Government stimulus campaigns have provided some support to the industry, but overall consumers are remaining cautious. As a result, industry revenue is expected to contract at an annual rate of 1.7% over the five years through 2012-13. In 2012-13, revenue is forecast to decline by 4.4% to just $4.47 billion... purchase to read more
Industry Report - Industry Key Buyers Chapter
In 2012-13, the two major players in the industry only account for 8.6% of revenue. This is due to the highly fragmented nature of the industry. There are almost 3,500 enterprises with nearly 20,000 establishments. The largest player in the industry, Ray White, only has a franchise network of about 1,000 offices.
Market share concentration is expected to have increased over the past five years as industry consolidation and rationalisation have been rampant. For example, industry player LJ Hooker acquired Hooker Corporation in 2009, which boosted the company's franchise network. Moreover, Re/Max Australia has displayed significant declines in franchise sales revenue over the period, suggesting a depressed market... purchase to read more