For rent: Declining mortgage affordability has encouraged industry revenue growth

Property managers play a vital role in the residential property market by linking landlords with tenants. There are approximately 2.7 million rental households in Australia, with an estimated 6.5 million tenants. Property managers, on behalf of landlords, manage most of these rental households and tenants. Property managers charge a commission fee, taken as a percentage of the rental income. Industry revenue is expected to grow at an annualised 5.8% over the five years through 2016-17, to reach $3.9 billion. This growth is largely due to an expected decline in mortgage affordability and higher housing prices over the period. Declining housing affordability makes it difficult for people to enter the real estate market...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
5.8%
Forecast Growth 17-22
Profit
Employment
25,756
Businesses
11,951
Market Share of Companies

Industry Threats & Opportunities

  • A higher number of people renting has driven demand for property management services
  • Higher economies of scale will improve profitability over the next five years
  • Industry Report - Industry Investment Chapter

    The Residential Property Leasing and Management industry is highly labour-intensive. The industry uses little capital other than computers, office furniture and premises, most of which are leased. The industry is based on managing relationships with landlords and tenants, as well as dealing with the day-to-day tasks of managing a property. As a result, wages account for the majority of industry revenue. Consequently, for every dollar invested in capital items, the average industry participant spends an estimated $13.15 on wages. When commissions are included, the total amount spent on labour for every dollar invested in capital jumps to an estimated $22.65. The...purchase to read more.

    Additional Insights for the Residential Property Leasing and Management Industry

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

  • Ability to control stock on hand
  • Carrying out all necessary maintenance to keep facilities in good condition
  • Understanding government policies and their implications
  • IBISWorld analysts also discuss how external factors such as Demand from residential property operators and Residential housing prices in the Residential Property Leasing and Management industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Residential Property Leasing and Management Industry?

    Industry players lease and manage residential real estate, or other property that they do not own, on behalf of clients.

    Industry Products
  • Management and leasing of separate houses
  • Management and leasing of semi-detached houses
  • Management and leasing of flats, units and apartments
  • Industry Activities
  • Residential property management
  • Residential property leasing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from residential property operators
  • Residential housing prices
  • Residential property yields
  • Mortgage affordability

  • Current Performance
  • Industry structure
  • The property market
  • More than one function
  • Chart: Revenue Growth

  • Industry Outlook
  • Affordability
  • Technological developments
  • Critical mass
  • Participation

    and profit

  • Table: Residential Property Leasing and Management Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Accounting Services
  • Electrical Services
  • Gardening Services
  • Legal Services
  • Plumbing Services

  • Products & Services
  • Management and leasing of separate houses
  • Management and leasing of flats, units and apartments
  • Management and leasing of semi-detached houses
  • Chart: Residential Property Leasing and Management Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • First income quintile
  • Chart: Major Market Segmentation for the Residential Property Leasing and Management 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 Leasing and Management

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Residential Property Leasing and Management Industry

  • Industry Globalization
    LJ Hooker Limited,
  • Table: LJ Hooker Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Residential Property Leasing and Management 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 Leasing and Management Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    First Home Owner Grant
  • A government grant designed to aid first homebuyers in buying a property.
  • Loan-To-Value Ratio
  • Also LVR. The ratio that measures the relative size of the loan compared with the overall value of the property.
  • Rental Yield
  • The rent that an investor is able to get from an investment property, expressed as a rate of return.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Residential Property Leasing and Management market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

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

    Contact Us

    Want to speak to a representative? Call us.

    clear