Three-quarters of real estate agencies now more profitable than in 2020

More than two-thirds of Australian and New Zealand residential real estate agency office principals are personally taking home higher earnings in 2021 than in 2020, according to a new survey by Juwai IQI.

An even higher share of offices – three-quarters – are more profitable today than in 2020, the survey found after interviewing the principals of the 29 offices in Juwai IQI’s AU-NZ affiliate network in May.

The offices surveyed contain approximately 120 sales staff. The respondents were located in the North and South Islands of New Zealand, New South Wales, Queensland, Victoria, and Western Australia, and Juwai IQI noted they provide an excellent snapshot of the current state of the residential real estate industry.

The survey found 67 per cent of principals are taking home higher earnings this year and only 11 per cent say they are taking home less than in 2020. The remaining 22 percent, are taking home about the same in 2021 as in 2020.

Juwai IQI Co-Founder and Group Executive Chairman Georg Chmiel said while three-quarters of offices are more profitable than a year ago, some principals are investing a share of their profits in their businesses rather than taking it as personal income.

“This explains why the share of offices where profits are up is larger than the share of principals taking home higher earnings,” he noted.

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