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 SWOT Analysis Chapter
The industry is in the decline stage of its life cycle. Its contribution to the economy (industry value added) is estimated to decline at an annualised 1.1% over the 10 years through 2017-18. Meanwhile, the Australian economy is forecast to grow, with GDP estimated to increase at an annualised 2.4%. Consequently, the industry's economic contribution is shrinking in proportion to the Australian economy. This suggests that the industry is in the decline stage of its life cycle.
The decline in industry valued added is mostly due to weaker operating profit margins. Real estate agency franchises are expected to experience reduced profitability due to strong competition from online real estate services... purchase to read more