The Australian residential real estate market has been extremely active over the last 3 - 4 years.
The Australian residential real estate market has around 750,000 transaction each year.
Agents and Agencies
There are around 30,000 residential real estate agents in Australia who work for around 9,000 real estate offices.
In Australia, it is the real estate office, not the agent, that has the prime brand in a market.
Of these offices, around 50% are independently operated while the other 50% are members of franchise groups. The large franchise groups include Ray White, LJ Hooker, Raine & Horne, and Century 21.
In Australia, a vendor will approach a real estate office to sell their property. The real estate office will propose either a 3% commission and will handle all marketing costs (around 60% of sales in the country) or will propose a ~2% commission and will charge the vendor a marketing fee of approximately 1% of the estimated sale price.
There is a high use of auctions in Australia to sell homes.
There are almost no buyers agents in Australia with buyers dealing directly with the selling agent to negotiate the final sales price. If a buyers agent is used, this is almost always paid for by the buyer and not the vendor.
There is a strong focus on newspaper advertising in Australia. This is driven by the wide use, especially in the premium property areas, of vendor paid advertising. That is, the vendor will pay for the advertising of the property separately from the commission they pay on the sale of the property.
It is estimated that the total advertising market in Australia is A$1.2 billion p.a. split roughly as:
The major newspaper publishers are News Limited (part of New Corporation) and Fairfax