Real Estate Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: January 2024
ANZSIC L6720Revenue
$28.0bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
142k
Businesses
41,360
Wages
$XX.Xbn
Real Estate Services in Australia industry analysis
The Real Estate Services industry has faced turbulent conditions in the past few years, amid volatile movements in the cash rate and widespread upheaval in commercial leasing during the pandemic. A surge in inflation in the wake of the pandemic has resulted in the RBA engaging in the fastest hiking cycle in its history. This followed over a decade of very low interest rates that drove heavy investment in Australia’s property market, driving consistently strong growth in commercial and residential property prices. In 2019-20 and 2020-21, interest rates fell to record lows, which resulted in an unprecedented surge in median house prices and significant growth in real estate commissions. This trend has underpinned strong growth in industry-wide profit margins since 2019-20.
Trends and Insights
- Work-from-home measures during the pandemic dampened revenue. Some businesses cut down on their office space to reduce their rent costs.
- High interest rates are preventing housing prices from hiking up sales revenue. Since houses are more expensive to finance, property sales are making up a smaller share of revenue.
- New South Wales, Queensland and Victoria contain the most real estate agents. In particular, demand for residential property is rising in Melbourne and Sydney, encouraging companies to set up offices in these cities.
- Real estate agents compete based on service quality and fees. While larger agencies rely on their status and reputation, smaller agencies cannot benefit from their brand or economies of scale.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.9 % over the past five years, to reach an estimated $28.0bn in 2024.
Trends and Insights
Fluctuations in the residential property market have dictated the performance of real estate agents
- The residential property market is the key driver of growth in the Real Estate Services industry. Over the past decade, record-low interest rates drove both demand and price, pushing median house prices up and encouraging growth in the number of dwelling transfers.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
An improvement in upstream supply will complement price-led growth in real estate services
- The number of housing transfers is on track to grow as recent troubles in the construction sector ease over the period. Key upstream sectors like residential building construction and commercial and industrial building construction are on track to grow, delivering an uptick in new dwellings.
Biggest companies in the Real Estate Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Ray White | 1,037.2 | |
Jones Lang LaSalle | 897.1 | |
CBRE | 869.1 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Property sales, Property management and Property leasing. Property sales is the largest segment of the Real Estate Services in Australia.
Trends and Insights
Climbing housing prices have elevated revenue from property sales
- Property sales include sales of residential, retail, industrial and other commercial properties. Real estate agencies organise property sales through auctions or private sales and advise on pricing.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Office Property Operators in Australia
Complementors
- Legal Services in Australia
- Mortgage Brokers in Australia
- Mortgages in Australia
International industries
- Global Commercial Real Estate
- Commercial Leasing in the US
- Real Estate Sales & Brokerage in the US
- Real Estate Appraisal in the US
- Real Estate Asset Management & Consulting in the US
Table of Contents
About this industry
Industry definition
Real estate services providers mainly appraise, purchase, sell (by auction or private treaty), manage or rent residential property, commercial property or a combination of the two.
What's included in this industry?
Property salesProperty leasingProperty managementProperty valuationsFiduciary and escrow consultingCompanies
Ray WhiteJones Lang LaSalleCBREPurchase this report to view all 4 major companies in this industry.
Related Terms
FIRST HOME OWNER GRANTFOREIGN INVESTMENT REVIEW BOARD (FIRB)VIRTUAL REALITY (VR) AUGMENTED REALITY (AR)Industry Code
ANZSIC 6720 - Real Estate Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Work-from-home measures during the pandemic dampened revenue. Some businesses cut down on their office space to reduce their rent costs.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
High interest rates are preventing housing prices from hiking up sales revenue. Since houses are more expensive to finance, property sales are making up a smaller share of re...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
New South Wales, Queensland and Victoria contain the most real estate agents. In particular, demand for residential property is rising in Melbourne and Sydney, encouraging co...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Real estate agents compete based on service quality and fees. While larger agencies rely on their status and reputation, smaller agencies cannot benefit from their brand or e...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Real Estate Services industry doesn’t have any major players. The industry is highly fragmented, and agencies tend to struggle to gain significant market share.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Ray White's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Jones Lang LaSalle's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of CBRE's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Ray White, and factors influencing its performance in the industry
- Description and key data for Jones Lang LaSalle, and factors influencing its performance in the industry
- Description and key data for CBRE, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
State fair trading and licensing legislation applies to real estate agents. These requirements mostly relate to staff qualifications and experience.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Sales staff at large real estate agencies primarily earn wages from commissions. Greater commissions on higher house prices have lifted wages as a share of revenue.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Real Estate Services industry in Australia in 2024?
The market size of the Real Estate Services industry in Australia is $28.0bn in 2024.
How many businesses are there in the Real Estate Services in Australia industry in 2024?
There are 41,360 businesses in the Real Estate Services industry in Australia, which has grown at a CAGR of 0.4 % between 2019 and 2024.
Has the Real Estate Services industry in Australia grown or declined over the past 5 years?
The market size of the Real Estate Services industry in Australia has been declining at a CAGR of 1.9 % between 2019 and 2024.
What is the forecast growth of the Real Estate Services industry in Australia over the next 5 years?
Over the next five years, the Real Estate Services industry in Australia is expected to grow.
What are the biggest companies in the Real Estate Services market in Australia?
The biggest companies operating in the Real Estate Services market in Australia are Ray White, Jones Lang LaSalle and CBRE
What does the Real Estate Services in Australia include?
Property sales and Property leasing are part of the Real Estate Services industry.
Which companies have the highest market share in the Real Estate Services in Australia?
The company holding the most market share in Australia is Ray White.
How competitive is the Real Estate Services industry in Australia?
The level of competition is high and increasing in the Real Estate Services industry in Australia.
