Estate agents took home less in last financial year: IBISWorld

Estate agents took home less in last financial year: IBISWorld
Estate agents took home less in last financial year: IBISWorld

The residential real estate sector recorded its first revenue fall in five years in the recent financial year.

As estate agents battled low listing volumes in a low commission environment, researchers IBISWorld estimated total fees earned by real estate agents fell by $83.5 million or 0.7 per cent in FY17 to $12.46 billion.

The past financial year also saw the emergence in Australia of low-cost operators, along with the consolidation of lead generating websites which take a share of their commission.

"Rising competition and the digitisation of real estate services are likely to depress profit margins slightly over the next five years and challenge traditional operators," said IBISWorld.

"Digital platforms could undermine the industry's services as they represent a low-cost substitute, although this technology is also becoming a core component of a real estate agent's arsenal."

However, IBISWorld forecast industry employment to rise over the next five years, "with many operators opting to employ additional staff with greater expertise in an attempt to win customers amid rising competition".

Tags: 
Real Estate Property market

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