Purplebricks’ market exit only opens the door to newer players
If you believe the demise of Purplebricks in Australia is due to the market not wanting or accepting a cheaper alternative to real estate agents, then you are totally incorrect.
Purplebricks have openly said they didn’t execute their plan well and they expanded way too quickly. The challenging market conditions seeing a lower volume of transactions hasn’t helped either.
The real estate market in Western Australia and Queensland is still cool whilst the two biggest markets – New South Wales and Victoria – are falling.
In my view it is quite evident that consumers have changed… not just in real estate but also across the board. Look at our addiction to online shopping and banking to the detriment of retail shopping outlets and the number of bank branches.
Whilst the fall of Purplebricks in Australia is a dent in the disruption that is being experienced in the real estate sector, don’t expect it to be the end.
We believe the disruption will continue with new players (and the existing online portals) and, whilst Purplebricks’ current position has given some agents a little leeway, don’t expect that there won’t be pressure from other areas.
It was an amazing day where I live on Saturday and I went for a long walk with my wife. Whilst I was out walking the streets I saw numerous signs from buyMyplace – this is something new, never seen them before, but I expect to see them a lot more.
My call to all agents in the face of Purplebricks leaving the market is to take this time now to do something different. Offer a different product AND change your cost structures to maximise your ability to generate profit.
The Australian real estate sector is rife with disruption right now. Why?
Let’s face it – labour is too high in property management, it’s difficult getting good rental and sales listings, and online agencies are grabbing marketshare at a fraction of the price and cluttering the market, all which cannot be ignored.
Is the performance of your real estate business suffering due to a lack of financial insight? Could your real estate agency be more successful with better understanding of your financials and how to improve them?