Purplebricks showing ‘good momentum’ in Australia, says independent expert

Purplebricks local property experts are on average each selling between two and two and a half properties a month in the three territories where it has so far launched in Australia.

These are Queensland and Victoria, and a third, newer territory, New South Wales.

An article by proptech commentator Mike DelPrete uses data from Australian property listing website realestate.com.au to assess how much traction Purplebricks has gained since its launch in Australia last August.

Looking at the listed sale prices of just under 500 properties, DelPrete concludes that Purplebricks is appealing to the lower end of the market.

The Purplebricks median sale price was $493,000 (£282,800) in Queensland, below the overall market median home value of $655,000 (£375,000).

Median sale prices in Victoria using Purplebricks were at $530,000 (£304,800) compared with the overall market median home value of $826,000 (£474,000)

Writing on Property Portal Watch, DelPrete also looked at past sales numbers and the future prospects.

Based on Purplebricks listing 26 LPEs in Queensland, 20 in Victoria and 12 in New South Wales (NSW), he then uses data from realestate.com.au on the number of houses sold in each area to come up with a sale per LPE ratio.

This works out at just under one and a half properties per LPE in New South Wales, just over two in Queensland and a little more than two and a half in Victoria.

DelPrete also looks at the number of current listings of 346 in Queensland, 196 in Victoria and 83 in NSW, to give an idea of the number of properties each LPE has to sell.

This suggests there are 13.4 properties per LPE in Queensland, 9.8 in Victoria and 6.9 in NSW.

He said: “Is it true that owners with high value homes are still more comfortable using a traditional real estate agent (even though they could proportionally save more on commissions by using a service such as Purplebricks), or is it still early days with Purplebricks building trust in a new market?

“Regardless, it’s clear that the proposition is resonating with a growing number of consumers.”

Purplebricks’ next stop is the US.

Read the full article.

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