Open house: Small firms have joined franchises to benefit from group branding

The Real Estate Agency Franchises industry has performed well over the past five years. Industry revenue has grown strongly as loan rates have plunged to a record low, supporting demand for residential property. This demand has contributed to strong price growth for residential housing over the past five years. Higher housing prices usually increase both the quantity of housing transfers and the value of commission and fees earned by real estate agents. As a result, industry revenue is expected to grow at an annualised 4.1% over the five years through 2018-19, to $9.6 billion.Homeowners are more likely to upsize or downsize when property prices rise, increasing industry demand...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 14-19
4.1%
Forecast Growth 19-24
Profit
Employment
68,189
Businesses
749

Industry Threats & Opportunities

  • Rising property prices have increased investor activity, supporting industry demand
  • Low interest rates have boosted domestic investor interest in property over the past five years
  • Competition from online sales platforms is forecast to lower profit margins over the next five years
  • Industry Report - Industry SWOT Analysis Chapter

    The Real Estate Agency Franchises industry is in the mature stage of its life cycle. Industry value added (IVA), a measure of the industry's contribution to the economy, is forecast to grow at an annualised 2.4% over the 10 years through 2023-24. This result is a slight underperformance of the economy, with GDP forecast to grow at an annualised 2.6% over the same period. The industry has benefited from skyrocketing residential property prices over the past five years, but this growth has been constrained slightly due to increased competition. This has led to profit falling over the past five years. As profit is a key contributor to IVA, this has negatively skewed the industry's IVA figure. Over the long term, the industry's IVA growth is expected to remain close to GDP growth...purchase to read more.

    Additional Insights for the Real Estate Agency Franchises Industry

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

  • Aggressive marketing/franchising - given the high level of competition
  • Management of a high quality assets portfolio
  • 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 Agency Franchises industry impact industry performance..

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    What's in this report

    What is the Real Estate Agency Franchises Industry?

    Industry players operate real estate agency franchises. Industry firms (franchisees) pay franchise, royalty and renewal fees to the franchisor in exchange for branding, marketing, administrative support, training and other services.

    Industry Products
  • Residential sales
  • Residential leasing and management
  • Non-residential sales, leasing and management
  • Industry Activities
  • Conveyancing (other than by a qualified practitioner)
  • Real estate management
  • Appraisal of real estate
  • Real estate agency body corporate management
  • Real estate agency auctioning and brokering
  • 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
  • Business confidence index
  • Residential housing prices
  • Residential property yields

  • Current Performance
  • Residential property
  • Commercial property
  • Online presence
  • Chart: Revenue Growth

  • Industry Outlook
  • Rental income
  • Foreign investment
  • Profit and structure
  • Table: Real Estate Agency Franchises Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Residential Property Operators
  • Office Property Operators
  • Retail Property Operators
  • Industrial and Other Property Operators

  • Key Selling Industries
  • Specialised Design Services
  • Wireless Telecommunications Carriers

  • Products & Services
  • Residential sales
  • Residential leasing and management
  • Non-residential sales, leasing and management
  • Other
  • Chart: Real Estate Agency Franchises Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • House owner-occupiers
  • Investors
  • Commercial businesses
  • Chart: Major Market Segmentation for the Real Estate Agency Franchises 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 Agency Franchises

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Real Estate Agency Franchises Industry

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Real Estate Agency Franchises 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 Agency Franchises Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Commission
  • Commonly paid to real estate agents, commissions are a pre-arranged percentage of a property sale price paid to sales staff or an agency for their services.
  • First Home Owner Grant
  • A government grant for first-home buyers. This is a national scheme funded by the government states and territories.
  • Owner-Occupier
  • An individual or household that owns rather than rents the house they live in. This is distinguished from an investor, who purchases a property to rent out and generate income from.
  • Real Estate
  • Property that includes the land, any built structures and natural resources.
  • Rent
  • Payment for the temporary use of real estate.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Real Estate Agency Franchises market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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

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