The real deal: Rising house prices and low interest rates have supported industry growth
Operators in the Real Estate Services industry have reaped the benefits of a booming residential property market over the past five years. Despite turbulent economic conditions, housing prices have grown strongly, supported by government incentives at the beginning of the period and then fuelled by falling interest rates. In contrast, the commercial property market has performed modestly over the past five years due to volatile business confidence. Overall, industry revenue is expected to increase at an annualised 2.7% over the five years through 2017-18, to reach $14.2 billion. Industry revenue is expected to drop by 1.8% in 2017-18, with an anticipated decline in housing transfers likely to reduce industry activity and earnings.