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Research into real estate disruptors

19 April 2017

The market share of disruptors in the residential real estate market is growing in Sydney, but is still less than 1% of the total market.

This is according to the research team at PRDnationwide, who carried out the research using all house and unit sales for Sydney, Melbourne and Brisbane from 2014 to 3 March 2017.

It also showed how traditional agencies are selling houses and units for a higher value overall.

Tony Brasier, Chairman and Managing Director of PRDnationwide, said: “There has been a lot of talk about disruption in the real estate industry, but the real results show that it has had little impact. 

“It also shows that most of the disruption is coming from within the industry with traditional agents setting up different models.

“This is not to say agents don’t need to be aware of disruption, but at the moment it is not making a difference to the market.”

Sydney’s disruption data

Disruptors were defined by the PRDnationwide team as anyone that is not a real estate franchise or independent agency. 

According to the research the market share achieved by real estate disruptors in Sydney was 0.49% in 2014; 0.50% in 2015; 0.63% in 2016; and, so far in 2017, 0.32%.

The table below compares the sales prices of disruptors against real estate agencies and the percentage difference between the two.

Year Unit disruptor  Unit traditional  Difference 
2014  $555,000   $594,000 
2015 $676,200 $666,333  -1%
2016  $660,000
$705,000 6% 
2017  $820,000  $748,000   -10%

Year House disruptor  House traditional  Difference 
 2014 $730,000  $890,000  18% 
 2015 $850,000  $1,066,000  20%
 2016 $861,500  $1,090,000  21% 
 2017 $940,000 $1,150,000  18% 

Although the difference for 2017 is -10%, PRDnationwide said this was based on one disruptor unit sale so far.

They also added how Sydney has a much vaster range of different agencies in comparison to other capital cities, which makes it a harder market to crack in terms of getting a foothold in the market.