The CEO of Purplebricks in Australia says the firm will launch there before Christmas.
The non-traditional estate agency market is virtually non-existent in Australia, but Ryan Dinsdale said: “We would look to replicate our UK market share success in Australia.”
Dinsdale, who was appointed as CEO Purplebricks Australia only this month, is also looking to recruit “high quality Australian estate agents with local expertise who may feel disenfranchised or disillusioned”.
Dinsdale does not have an estate agency background, but has held various marketing roles, including being marketing director for Virgin Money Australia.
On his LinkedIn profile, he says: “I am extremely privileged and excited to be bringing Purplebricks to Australia.
“We are changing the way Australians sell real estate, giving them the best experience through incredible service and saving them thousands of dollars along the way.
“Purplebricks has been a huge success in the UK and we believe it is exactly what the Australian public have been waiting for.”
According to Purplebricks, the Australian market is similar to that in the UK, including “a deep seated frustration with the lack of control over sales process and poor value for money”.
Neville Sanders, president of the Real Estate Institute of Australia, told an Australian financial publication that if Purplebricks are as good as they say they are, there is “room in the market for them”.
However, he added: “Many vendors are quite happy to pay a percentage of the sale price if it gets the best price for them.”
Comments (12)
I’ve decided – I’m going to set up an Online Agency.
I’m going to specialise. I’m gonna disrupt the market good and proper.
I’m gonna take the NORWICH market by storm.
The tactics are set out already:
1. I’m far enough away that my ‘Local’ claim will hit the headlines. No such thing as bad publicity.
2. I’m gonna list on all the main portals except OTM, RM & Z. Or any other that charge a fee.
3. I’m gonna get Ant & Dec to be my ‘Brand Ambassadors’. (Just don’t tell them – our secret, okay…)
4. I’m gonna adopt a turkey as my mascot (surprised it hasn’t been done before – by ALL of them…)
In fact – I’m gonna expand exponentially before I’ve even listed my first property. Why set my sights at one town? There’s a whole COUNTY there to work at.
That way – my company name will be even more relevant:
http://www.norfolk‘n’chance.co.uk
See you all at the next Virgin Begathon!
;o)
9.7 million homes in Oz.
Say 2.5% ‘move’ per annum – 242500 transactions.
What do they expect to pick up? 5% max? – 12125 per annum.
Double that number ‘cos they’re only selling 1 in 2 at best from what I see – 25250 listings.
@ $1000 (AUD) a pop that’s 25.25 mill. income (+ all those lucrative add-ons… not.)
Wonder how much they’ll LOSE based on those figures?
Please Sir… can I be one?
I’m “local”… ish. Give or take.
And my wife watches Neighbours – so I am well informed on Aussie life and property.
I baggsy Ayres Rock territory.
There was also a comment in the UK financial press from PB’s CEO that agents in Australia charge between 5-6% per sale. Complete fiction of course – most are struggling to get 2% in the capital cities although agents in the bush are getting marginally more. But Sotheby’s have wrecked the market by allowing its agency in Sydney to go as low as 1% plus GST to get a listing. So, if PB are telling the UK press that they are about to break into the market because of fees, then they’re lying – not a great way to create a good first impression for possible local ‘area experts’ in Oz, I would suggest
“We would look to replicate our UK market share success in Australia.”
“Dinsdale does not have an estate agency background.”
Only two sentences worth taking note of in the entire article? PB has v.small market share in UK and, seemingly, no profits. Dinsdale is a marketer and not an estate agent – surely an estate agency looking to topple the establishment would prefer to have an actual estate agent take the lead? It sounds like a vast PR campaign and not a genuine attempt to bring about change (in spite of the good intentions of offering an alternative).
It’s not about bringing in change, it’s about building up and cashing out.
“…not a genuine attempt to bring about change (in spite of the good intentions of offering an alternative).”
There is NOTHING in PBs offering that has “good intentions” of anything.
I was always said PB are going down-under!!!!!!
Get it ! going under ?
You follow me?
LOL ?
What we have to bear in mind is that companies like PB’s are not set up to primarily make money via the transaction.
They make their money on the sale of the business or as we have seen in the UK it’s flotation.
For that reason it doesn’t need an estate agent at the help, and ideally, as with PB Australia, a marketing specialist is perfect.
By the time its seen that those on the ground are struggling to make money, those at the top have cashed out.
*helm not help
I appreciate the dislikes, helps me see how many PB agents are online.
Fact is any large national company that wants to take its model overseas hasn’t got the interests of the punter or in some cases it’s agents at heart.
It’s a financial transaction rather than a genuine attempt to help the industry.
I’m surprised that they are recruiting….. Surely the experts over here are local enough to deal with the enquiries?
How many miles across is the LPEs patch in oz? Must be 4-5Times bigger than over here.