There are interesting things happening in the Australian real estate sector at the moment. The share price of McGrath has been plummeting and the new UK based hybrid business ‘Purplebricks’ has entered the Australian market and is showing promising growth potential. If their success in the UK is anything to go by, their presence should not be ignored.
At the risk of sounding a little Alan Koehler’ish I wonder if this is a coincidence? Below are the 12 months graphs for Purplebricks on the London Stock Exchange and McGrath on the ASX (this sort of reminds me of what was happening a few years ago when comparing the Fairfax graphs with realestate.com.au).
Digital disruption is taking hold of the property sector and over the next few years, I suspect we are going to see total war between modern digital agencies and traditional business models. This should be great news for consumers, as commissions will be forced down.
It’s hard for some agents to admit but the market in Australia is now owned by domain.com.au and realestate.com.au. Recently a good friend said to me ‘make decisions for yourself or others will make them for you’. Unless agents are looking to add value to property transactions, I think they will be left behind.
Until next week,
Purplebricks London Stock Exchange
McGrath Australian Stock Exchange