Overview

The real deal: Rising house prices and low interest rates have supported industry growth

IBISWorld’s Real Estate Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$14bn
Annual Growth
2013 - 2018
2.7%
Annual Growth
2018 - 2023
Profit
Employment
111,192
Business
38,325

Industry Threats & Opportunities

  • The bypass of real estate agents in favour of online channels is a significant threat to the industry
  • Many overseas investors view Australia’s property market as a safe growth area
  • The digitisation of real estate services is likely to challenge traditional operators

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    Industry Analysis & Industry Trends

    Operators in the Real Estate Services industry have reaped the benefits of a booming residential property market over the past five years. Despite turbulent economic conditions, housing prices have grown strongly, supported by government incentives at the beginning of the period and then fuelled by falling interest rates. In contrast, the commercial property market has performed modestly over the past five years due to volatile business confidence. Overall, industry revenue is expected to increase at an annualised 2.7% over the five years through 2017-18, to reach $14.2 billion. Industry revenue is expected to drop by 1.8% in 2017-18, with an anticipated decline in housing transfers likely to reduce industry activity and earnings.

    Competition in the industry is fierce...

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    Industry Report - Industry Key Buyers Chapter

    The Real Estate Services industry displays low market share concentration, with no individual player dominating the industry. According to data from the Australian Bureau of Statistics, businesses that make over $2.0 million only account for about 6.5% of industry participants. The largest companies have the strongest presence in smaller markets (most notably, the Northern Territory and the Australian Capital Territory), since these markets are easier to build scale in. Industry operators are predominantly self-employed and local firms, although a number participate in national franchise systems. A significant proportion of national players operate in the commercial and rural segments. Wit..

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    Additional Insights for the Real Estate Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Real Estate Services Industry are

  • Aggressive marketing/franchising
  • Management of portfolio
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Mortgage affordability and Number of housing transfers in the Real Estate Services industry impact industry performance..

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    Industry Products

    What is the Real Estate Services Industry?

    Industry operators are primarily engaged in appraising, purchasing, selling (by auction or private treaty), managing or renting residential property, commercial property, or a combination of the two.

    Industry Products
    Property sales
    Property management
    Property leasing
    Other services
    Industry Activities
    Conveyancing (other than by qualified legal practitioners)
    Real estate agency, auctioning, body corporate management and brokering
    Real estate management
    Real estate title transfers (other than by qualified legal practitioners)
    Timeshare apartment managing
    Title searching
    Appraisal of real estate

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Mortgage affordability
  • Number of housing transfers
  • Residential housing loan rates
  • Residential housing prices

  • Current Performance
  • The residential market
  • The commercial market
  • Profitability and industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Residential property growth
  • Commercial property trends
  • Operating challenges
  • Table: Real Estate Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Real Estate Services Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Residential Property Operators
  • Finance
  • Office Property Operators
  • Retail Property Operators
  • Industrial and Other Property Operators

  • Key Selling Industries
  • Specialised Design Services
  • Wired Telecommunications Network Operation
  • Wireless Telecommunications Carriers

  • Products & Services
  • Property sales
  • Property leasing
  • Other services
  • Property management
  • Chart: Real Estate Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Household owner-occupiers
  • Investors
  • Commercial businesses
  • Chart: Major Market Segmentation for the Real Estate Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Marketing
  • Rent
  • Franchise fees
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Real Estate Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Real Estate Services Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Real Estate Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Real Estate Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    First Home Owner Grant
  • A government grant for first home owners. This is a national scheme funded by states and territories.
  • Private Treaty
  • Where the sale of a property involves negotiations and offers between the buyer and seller over a period of time, rather than through an auction setting.
  • Vendor
  • Owners of property that are looking to sell their property.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Real Estate Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Real Estate Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Real Estate Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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