Purplebricks Australian property listings shrink to just 800 homes for sale

Purplebricks Australian property listings shrink to just 800 homes for sale
Purplebricks Australian property listings shrink to just 800 homes for sale

There are just 800 listings remaining on the Purplebricks website.

It was at around 1000 a fortnight ago, as vendors depart the UK-based disruptor for local estate agents.

Purplebricks Australian property listings shrink to just 800 homes for sale

The remaining 800 offerings range from around $2.9 million to $3.2 million at 30 Boundary Road, Narre Warren East (pictured above), a four bedroom, three bathroom house set on 6.47 hectares to $30,000 for Lot 30 Melvin Terrace, Pinery.

The 1012 square metre Pinery holding has been unsuccessfully offered to market multiple times over the past six years, with the asking price reaching $133,270 from 2014 - 2016.

According to their website, around 85 agents are still on deck.

In early May, Purplebricks Australia announced its intention to exit the Australian market.

Despite the newly-installed CEO Neil Tavender and Kenny Bruce having overhauled the pricing model, so that half the fee was paid upfront and half on completion of the sale, Purplebricks have been forced to abandon the Australian market.

The pressure on the Australian business was most clearly exposed when it reported an $18 million interim loss for the six months to October last year.

Vic Darvey, the Purplebricks Group CEO said in May that after much consideration it had "made the difficult decision to close the Australian business".

"We’ve been operating here for two and half years and, unfortunately, we have been unable to make the progress in the Australian market that we’ve wanted, despite the tireless efforts of our employees."

The Australian branch announced that they would take no further listings in Australia, but intended to finalise all existing agreements.

They announced their decision just a week after UBS said the company was not likely to make money in Australia until 2022.

In the month prior to the shutdown it was forecast that Purplebricks would potentially have to close its Australian operations to save the UK mothership.

Michael Bruce, the group's founder and chief executive officer stepped down immediately following the announcement with Vic Darvey, previously Purplebricks’ Chief Operating Officer, being appointed to the role of Chief Executive Officer and to the Board of Purplebricks.

While Purplebricks has sold more than 5000 homes since launching in Australia in September 2016, the company was spending about 84c in advertising to generate a dollar of revenue.

The Australian Financial Review has regularly revealed an exodus of estate agents along with allegations of a "toxic culture" within the company.

Over the weekend the London press reported Purplebricks is due to post losses of £51 million.

The Sunday Telegraph advised that the loss, for the 12 months to the end of April, will be unveiled when Purplebricks reports its results on Wednesday.

The ‘underlying pre-tax’ loss compares with £26m for the year before.

According to the Telegraph, the near-double loss comes after a “failed assault” on the Australian market and troubles in its American business, which has been under review.

However, says the newspaper, the company is “theoretically profitable” in the UK.

The founders, brothers Michael and Kenny Bruce, have both left the business.

Michael Bruce, who was also global chief executive, has been replaced by Vic Darvey, formerly managing director of Money supermarket.

The Bruces have sold their shares in Purplebricks to German publishing giant Axel Springer, now Purplebricks’ largest investor with a 27% holding.

Purplebricks shares closed on Friday at 99p, below the £1 launch price back in 2015.

Tags: 
Property Listings Purplebricks

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