Ray White leads LJ Hooker with biggest Australian residential real estate market share

Ray White leads LJ Hooker with biggest Australian residential real estate market share
Ray White leads LJ Hooker with biggest Australian residential real estate market share

The Ray White agency leads the pack when it comes to market share, according to data within the McGrath IPO share prospectus.

The chart indicates Australian residential real estate service market share data by sales value, 12 months to 31 March 2015, based on McGrath management estimates derived from published sales in data available to McGrath management. The total market value of residential property sales was based on CoreLogic Data figures. 

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Ray White leads LJ Hooker with biggest Australian residential real estate market share

Source: McGrath IPO share prospectus

As at 30 June 2013, the ABS estimated there were over 35,000 residential real estate service businesses operating in Australia.

Approximately 62% of these businesses were sole proprietorships or partnerships without employees and 98% of real estate service businesses employed less than 20 staff.

In the 12 months to 31 March 2015, the 10 largest operators (including franchise networks) were estimated to account for approximately 30% of the Australian market by sales value.

It noted residential real estate is Australia’s largest and most valuable asset class, comprising over 9.5 million residential properties - approximately 72% houses and 28% unit -  with an estimated value of $5.9 trillion as at 30 June 2015.

In comparison, the total value of Australian superannuation and Australian listed stocks was estimated at approximately $2.0 trillion and $1.7 trillion respectively.

The Ray White Group joint chairman Brian White recently advised with all the press speculation of a market change that he awaited the group's October results with more interest than usual.

"So when our result of $3.9billion came in – just short of an all time record – it was a delight for us all," he advised while adding that new offices opened last month, including Thornlands and Albion in Brisbane, Riverstone and Woolloomooloo in NSW, and the expansion of Damian Moore’s successful Ray White Glen Waverley with a new office Mount Waverley in Victoria.

"Of particular interest was the continuing strength of NSW, who achieved a record result for us of $1.4 billion.

"That is double of what was being achieved only a few years ago."

Victoria and Tasmania also achieved a record result in the month of October with $353 million.

"The continuing resilience of the Australian east coast market is reassuring," Brian White said.

"It is true that bidding at auctions is not as frenetic as we noticed in the winter months, but what commentators have missed is that there is still substantial strength and activity in the market.

"Willing buyer and willing seller are still coming together and continuing to secure attractive prices – it just means the role of the real estate agent is more important than ever before," he said.

 

Tags: 
Estate Agents Residential Market

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