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 Key Buyers Chapter
Market share concentration is low, with the two major players in the industry accounting for 23.5% of revenue. This is due to the highly fragmented nature of the industry. There are almost 3,500 enterprises with more than 21,000 establishments. One of the largest players 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, major 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