Industry Analysis & Industry Trends
The Real Estate Agency Franchises industry has performed well over the past five years. Industry revenue has grown strongly following a sharp decline in 2010-11, when rising interest rates weakened property demand. Interest rates have plunged to a record low since then, boosting mortgage affordability and supporting demand for residential property. These factors have contributed to strong pricing growth in residential housing over the past five years. Rising property prices have enticed investors into the market, as the increased equity in existing properties has allowed many owners to purchase additional properties. Increased commercial property yields have also assisted industry revenue growth. Industry revenue is forecast to grow at an annualised 2.9%... 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