Real Estate Agents in Australia March 2012 17
Products & Markets
Distribution of establishments vs. population 50 40 30 20 10
According to the ABS, 81.9% of real estate agent establishments in Australia are located in New South Wales, Victoria and Queensland. The remaining states and territories comprise 18.1% of establishments. This breakdown of establishments has remained relatively consistent over the past five years. The regional distribution of establishments is largely a reflection of population demand pressures, with New South Wales, Victoria and Queensland home to 77% of the nation’s residents. Future establishment growth will largely follow regional population movements and commercial growth areas, which dictate commercial real estate demand. A significant proportion of residential investment during the past decade has been allocated towards holiday home purchases and renting, which has increased residential demand in Queensland. Although the after-effects of the natural disasters that affected the state at the beginning of 2011 will reduce demand for investments in holiday properties in the state, residents looking to relocate elsewhere are expected to negate this. The resource boom over the past several years has resulted in substantial rises in demand for both commercial and residential real estate in Western Australia, leading to a larger presence of
Establishments Population SOURCE: WWW.IBISWORLD.COM.AU
the Real Estate Agents industry in the state. IBISWorld estimates that residential property prices rose an average of 31% from 2006 until 2010. In 2009, this lowed slightly due to uncertainty about future events. Confidence has started to increase in 2011, and subsequently stronger growth in Perth and the rest of the state is expected. Mid-sized businesses dominate all states. The largest businesses have the strongest presence in smaller markets, notably the Northern Territory and the Australian Capital Territory, because they are competing with much smaller operations in these states.