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 Analysis Chapter
Real estate agency franchises have struggled over the past five years. Industry revenue is expected to rise at an annualised 1.0% over the five years through 2013-14 to reach $4.8 billion. The lower numbers of housing transfers have reduced demand for real estate agency franchises. However, growth in housing prices (off a low base in 2008-09) has led property owners and buyers to speculate on further price rises. Lower volumes have contributed to weaker operating profit margins in the industry. Strong competition from independent real estate agents, due to the popularity of online platforms, has also diminished operating profit margins... purchase to read more