By Tim McKibbin, REINSW CEO
Purplebricks's exit of the Australian market after just two-and-a-half years demonstrates clearly that the property services consumer will always seek a quality service provider, not a "cheap" substitute.
When Purplebricks entered the market, the property services industry raised concerns regarding its business model. This concern went unanswered by those with regulatory responsibilities and charged with consumer protection. Now consumers potentially face detriment as franchisees close their doors while still contractually obligated to their clients.
It remains to be seen whether NSW Fair Trading will act to protect consumers as Purplebricks exits the market, as little, if any, investigations were undertaken when they entered the market.