Hot property: Higher house prices have supported demand for rental properties

Residential property operators play an important role in society, and are expected to provide over 2.8 million rental households to the Australian population in 2018. Although becoming a homeowner is a priority for many Australians, record high housing prices have made it harder for consumers to save a deposit, and made home ownership an unattainable objective for many. This has resulted in solid demand for rental properties and benefited the Residential Property Operators industry over the past five years.Demand for rental properties has risen over the past five years. High housing prices have priced many potential buyers out of the market, while creating additional equity for existing property owners to purchase more assets...read more.

Industry Statistics & Market Size
Revenue
$47bn
Annual Growth 13-18
3.0%
Forecast Growth 18-23
Profit
Employment
7,439
Businesses
52,032
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • High housing prices have priced many potential buyers out of the market, supporting the industry
  • First-home buyers have fallen as a share of total financing of residential property
  • Rising disposable incomes are forecast to allow more Australians to buy, rather than rent
  • Industry Report - Industry Locations Chapter

    Of all the rental households in Australia, over 80% are located New South Wales, Victoria and Queensland. The distribution of rental households tends to align with population demand pressures, with these three states accounting for over three quarters of the nation's population. The breakdown of industry establishments has remained stable over the past five years and future growth is expected to be largely aligned to regional population movements.Several natural disasters, including Cyclone Oswald in 2013, and Cyclone Marcia in 2015, have affected Queensland's housing make-up over the past five years. Following these types of events, rental demand typically increases as residents who have lost or had major damage done to their homes are forced to relocate. As ...purchase to read more.

    Additional Insights for the Residential Property Operators Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Residential Property Operators Industry are

  • Understanding government policies and their implications
  • Good project management skills
  • Carrying out all necessary maintenance to keep facilities in good condition
  • IBISWorld analysts also discuss how external factors such as Residential housing loan rates and Mortgage affordability in the Residential Property Operators industry impact industry performance..

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    What's in this report

    What is the Residential Property Operators Industry?

    Industry operators rent or lease out residential properties. This includes owner-lessors and those that sublease. The industry excludes owner-occupiers that rent or lease their own dwellings to themselves (imputed rents).

    Industry Products
  • Leasing of detached houses
  • Leasing of semi-detached houses
  • Leasing of flats, units and apartments
  • Leasing of other dwellings
  • Industry Activities
  • Apartment renting or leasing
  • Residential caravan park operation
  • Flat renting or leasing
  • Residential house renting or leasing
  • Residential property body corporate operation
  • Residential property strata corporation operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Residential housing loan rates
  • Mortgage affordability
  • Real household disposable income
  • Residential property yields
  • Number of households

  • Current Performance
  • Housing affordability and government intervention
  • The rental market
  • Chart: Revenue Growth

  • Industry Outlook
  • Housing demand
  • Supply factors
  • Table: Residential Property Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Residential Property Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • State Government Administration
  • Consumers

  • Key Selling Industries
  • Electrical Services
  • Gardening Services
  • House Construction
  • Land Development and Subdivision
  • Mortgages
  • Multi-Unit Apartment and Townhouse Construction
  • Plumbing Services
  • Real Estate Services

  • Products & Services
  • Leasing of detached houses
  • Leasing of flats, units and apartments
  • Leasing of semi-detached houses
  • Leasing of other dwellings
  • Chart: Residential Property Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Singles
  • Couples with dependants
  • Couples
  • Singles with dependants
  • Other
  • Group households
  • Chart: Major Market Segmentation for the Residential Property Operators 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 Residential Property Operators

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Residential Property Operators 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 Residential Property Operators 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 Residential Property Operators 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
    Capital Gain
  • A profit from a sale of real estate, which exceeds its purchase price. It is the difference between a higher selling price and a lower purchase price.
  • Owner-Occupier
  • A household owner who lives in the property that they own, in contrast to an investor, who typically rents out the property to a tenant.
  • Vacancy Rate
  • Measures the number of unoccupied properties as a percentage of total available properties. Conversely, occupancy rate is the equivalent for the percentage of occupied properties.
  • What Our Customers Say

    Why buy this report?

    The Residential Property Operators market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Residential Property Operators:
    • 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 Residential Property Operators 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 Residential Property Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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