Purplebricks shares hit an all-time high of £1.81p yesterday as City confidence in its hybrid model peaked, while shares in agents operating more traditional models such as Foxtons and Countrywide continue to struggle.
Countrywide shares are still trading at around £1.75p, down by nearly three quarters on its 2014 peak price, while Foxtons shares are trading at 94p, down from £3.98p two years ago.
Purplebricks launched in mid-December 2015 at a price of £1 per share and during the initial months of 2016 slumped to 74p before staging an eye-popping rally that saw it reach a peak of £1.75p as initial business results from the company were announced.
The share price fell back in line with the rest of the industry as news on additional Stamp Duty, Brexit and a likely fees ban loomed, but then increased significantly during December after revealing total revenue growth of 159%.
This week’s uptick in its share price is likely to be down to news from its recently-launched Australian operation, which a few days ago Purplebricks said was going well in Sydney and New South Wales, and that it had plans to launch in more areas down under too
“We are confident that our proven success in auction and private treaty sales in the country is setting us apart from traditional real estate offerings and will make a substantial and positive difference for home owners across Australia,” said Chief Executive Michael Bruce (pictured).