Real Estate

Industry operators value, purchase, sell (by auction or private treaty), manage or rent real estate properties.

The industry provides a range of services regarding residential and commercial real estate. Over the past five years, real estate agents have lost market share in the prime commercial and retail property segments. This is because large fund managers control a significant proportion of the prime office and industrial property markets, and the shopping centre market. Fund managers and other financial institutions can arrange direct deals, putting attractive financial structures in place for investors (such as trusts and syndication), while reducing the need for real estate agents.

Real estate agents have not had much time to catch a breath over the past five years, largely due to trends in the residential property market. Despite turbulent economic conditions, housing prices rose, supported by government incentives at the beginning of the period and then fuelled by decreasing interest rates. This has been more than enough to offset pressures on sales commissions. In contrast, the commercial property market has been flat due to volatile business confidence and subdued economic conditions. Overall, industry revenue is forecast to increase at an annualised 2.0% over the five years through 2015-16, to reach $10.2 billion. In 2015-16, industry revenue is forecast to grow by 2.6%.

Source of Report – IBIS world (http://www.ibisworld.com.au)