Raine & Horne tackles disruption head on with growth
Raine & Horne are set to have over 80 offices by the end of 2016 with 10 to be opened in in Queensland and two in Sydney.
The Queensland-run businesses are in Brisbane Central, Goodna, Ipswich, Springfield, Mackay, Mackay Beaches, Moranbah, Commercial Mackay, Redcliffe and Banora Point.
The offices in Sydney will be located in Kingsford in the eastern suburbs and Lindfield on the north shore.
The announcement was made by executive chairman Angus Raine, who is confident there will be a stronger market towards the end of 2017.
“I am confident there will be a stronger market towards the end of 2017, but a critical shortage of listings around the country will see many businesses facing a challenging six months, with some agencies forced to reduce costs, which may see some amazing talent leave the industry,” he said.
Raine is concerned that the industry itself can be the biggest disrupter, suggesting margins might be reduced by the heavy discounting of commissions.
“Many businesses and salespeople are willing to pay referral fees to lead generators, when the cost of a sale is continuing to increase and business owners are facing the challenge of “sign-on fees” for key staff and some salespeople commanding higher commissions,” he said.
“If the trend continues, many businesses will not be able to achieve reasonable returns, thus resulting in some being forced to merge or sell.”
Record low interest rates and a high cost of sale are also contributing to the stock shortage.
“Many who may be looking to downsize are faced with the dilemma of paying more for a townhouse or unit, where in the past they had the ability of selling the family home and having the luxury of putting some money aside for a comfortable retirement,” Raine said.
“The shortage of listings is compounding the issue, with many concerned there won’t be a suitable property to buy. Owners are therefore delaying a listing until market levels improve.”
Raine is confident Raine & Horne, the 133-year old business, will be able to take advantage of an eventual change in the market.
“The recent investment in new technology and systems will see the growth in franchise businesses.”
