SUMMARY OF FINDINGS
INTRODUCTION
This publication presents results, in respect of the 1998-99 financial year, from an Australian Bureau of Statistics (ABS) survey of businesses and organisations in the real estate services industry. Businesses and organisations in this industry are classified to Class 7720 (Real Estate Agents) of the Australian and New Zealand Standard Industrial Classification (ANZSIC) which includes businesses and organisations mainly engaged in valuing, selling (by auction or private treaty), managing or renting real estate for other people.
Tables 1 to 10 of this publication contain statistics on private sector real estate agents, valuing and conveyancing businesses and Tables 11 to 12 contain statistics on government valuer general organisations.
SIZE OF INDUSTRY
At the end of June 1999, there were 7,589 private sector businesses in the real estate services industry. This represented a 6% decrease since June 1996.
The industry comprised 6,216 businesses mainly undertaking real estate agency activities, 429 businesses mainly undertaking property valuation services, 463 businesses mainly undertaking conveyancing services and 481 other businesses mainly undertaking such activities as body corporate management services, time-share apartment management services, real estate auctioning services and real estate broking services.
SOURCES OF INCOME
During 1998-99, private sector businesses in the real estate services industry generated $3,903 million in income, which was a 19% increase on the industry income generated in 1995-96. Most (64%) income was generated from property sales and leasing commissions, a marginal increase from the 61% recorded in 1995-96. The other major source of income was property management commissions which accounted for $925 million (24%) of total income.
EXPENDITURE
Total expenses of private sector businesses in the real estate services industry during 1998-99 was $3,438 million. Labour costs were the highest single expense ($1,848 million) representing 54% of total expenses, which was almost the same as recorded in 1995-96. Labour costs per employee for the industry during 1998-99 were $36,500 compared to $30,600 in 1995-96.
PROFITABILITY
The industry recorded an operating profit before tax of $465 million, which represented an operating profit margin of 12.0%, a significant increase on the operating profit margin of 8.2% recorded in 1995-96.
1 KEY FIGURES
 | Units
| 1995-96
| 1998-99
|
| Businesses at end June | | | |
| Real estate agency | no. | n.a. | 6,216 |
| Property valuation service | no. | n.a. | 429 |
| Conveyancing | no. | n.a. | 463 |
| Other | no. | n.a. | 481 |
| Total | no. | 8,079 | 7,589 |
| | | |
| Offices/locations at end June | | | |
| Capital city and suburbs | no. | n.a. | 6,102 |
| Other | no. | n.a. | 2,559 |
| Total | no. | n.a. | 8,661 |
| | | |
| Employment at end June | no. | 54,817 | 52,079 |
| | | |
| Income | | | |
| Income from property sales and leasing commissions | $m | 2,018.8 | 2,502.8 |
| Income from property management commissions | $m | 855.7 | 925.0 |
| Other income | $m | 412.9 | 475.0 |
| Total | $m | 3,287.5 | 3,902.7 |
| | | |
| Expenses | | | |
| Labour costs | $m | 1,600.1 | 1,847.5 |
| Other expenses | $m | 1,422.9 | 1,590.2 |
| Total | $m | 3,023.1 | 3,437.7 |
| | | |
| Operating profit before tax | $m | 264.4 | 465.0 |
| | | |
| Operating profit margin | % | 8.2 | 12.0 |
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