Real Estate Services in Australia - Industry Market Research Report

Real Estate Services in Australia - Industry Market Research Report

Real Estate Services in Australia

While government incentives and low interest rates after the COVID-19 outbreak elevated residential housing prices, the RBA has since hiked up the cash rate, causing interest rates to spike. These high rates have made it more expensive to borrow and made mortgages less affordable, which has cooled demand for real estate services. The pandemic also interrupted both residential and commercial construction. Movement and operational restrictions meant that businesses had to pivot to working-from-home arrangements, and continuing hybrid working arrangements are encouraging firms to rent less office space. Less purchasing and leasing activity has meant that agents are earning less revenue from commissions on property sales, dulling performance. Revenue is expected to fall at an annualised 1.5% to $29.6 billion over the five years through 2022-23 because of these trends. Revenue has also dropped by an estimated 10.4% in 2022-23, since toppling mortgage affordability is discouraging people from buying homes.

Real estate services providers mainly appraise, purchase, sell (by auction or private treaty), manage or rent residential property, commercial property or a combination of the two.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.