Safe as houses: Population growth and positive consumer sentiment have boosted revenue

A booming residential property market has supported operators in the Real Estate Services industry over the past five years. Government incentives and falling interest rates have driven growth in housing prices over the period, despite turbulent economic conditions. However, falls in the number of housing transfers over the three years through 2019-20 have constrained the industry's growth. Alongside declines in housing prices, these trends have offset much of the revenue growth that occurred over the three years through 2016-17. Government limits on foreign property investment also contributed to contraction in revenue. The commercial property market grew strongly over the same period, increasing demand for industry services...read more.

Industry Statistics & Market Size
Revenue
$26bn
Annual Growth 15-20
1.2%
Forecast Growth 20-25
Profit
Employment
137,289
Businesses
40,403
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Intense competition in an increasingly saturated market has constrained industry profit margins
  • Government restrictions on property investments by foreign operators have constrained overseas demand
  • The digitisation of real estate services is anticipated to challenge traditional operators
  • Industry Report - Starting a New Business Chapter

    The Real Estate Services industry has moderate barriers to entry. Although entrants face low initial capital outlays, intensifying competition has increased barriers to entry over the past five years. Establishing a reputation and geographical presence represents the largest barrier to entry. Due to the significant competition in the industry, operators must develop a referral base and centres of influence to build a critical mass of customer loyalty and sales. Most players in the industry already have brand recognition, clientele and highly skilled staff, which require time and capital for new players to establish.Geographical boundaries also represent a barrier to entry. Prospective buyers of properties tend to concentrate their search in a localised area. Est...purchase to read more.

    Additional Insights for the Real Estate Services Industry

    IBISWorld has determined the most important Key Success Factors for the Real Estate Services are:

  • Aggressive marketing/franchising - given the high level of competition
  • Ability to effectively communicate and negotiate
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Number of housing transfers and Mortgage affordability in the Real Estate Services industry impact industry performance..

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    What's in this report

    What is the Real Estate Services Industry?

    Industry operators primarily appraise, purchase, sell (by auction or private treaty), manage or rent 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of housing transfers
  • Mortgage affordability
  • Residential housing loan rates
  • Consumer sentiment index
  • 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

  • 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 management
  • Other services
  • Property leasing
  • 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • 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
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Real Estate Services Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    First Home Owner Grant
  • A national scheme funded by states and territories that provides a government grant for first home owners.
  • Private Treaty
  • Property sales that involve negotiations and offers between the buyer and seller over a period of time, rather than through an auction setting.
  • Vendor
  • Property owners that are looking to sell their property.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Real Estate Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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