Purplebricks has today launched into a third Australian property market and says its business there is expanding faster than its initial launch in the UK in April 2014.
Its new Sydney and central coast operation has just gone live with 20 local ‘property experts’ and an AU$5,500 fixed fee which, the company claims, saves sellers AU$15,000 off the cost of using one of the country’s traditional agents.
Australia’s property market is a softer target than the UK’s. Agents there typically charge a 2.2% fee plus marketing costs of several thousand dollars,. Purplebricks initialy launched last year into Melbourne and Brisbane, followed by today’s Sydney announcement and later this year, Perth and Adelaide.
The company is making much of its success in the UK to promote the Oz operation. Co-founder Michael Bruce (pictured) last week told local paper The Financial Review that the company was “playing a major role in changing the way real estate is sold in the UK and would do the same in Australia”.
He also told various media outlets in Sydney recently that the UK’s traditional agents were ‘struggling’ compared to Purplebricks, picking out Countrywide and Foxtons as examples and claiming to be the UK’s largest estate agency by market capitalisation.
But Purplebricks, which is spending £10m on it Oz business launches, remains a minnow within Australia with 430 properties marketed or sold since its launch there in September last year. It now has 70 ‘property experts’ working for it in Australia, including 50 in Melbourne and south-east Queensland, where it first launched its Oz business.