Australian property brand REA Group , which is 61% owned by Rupert Murdoch’s News Corp brand, confirmed that it was considering making a bid for Rightmove last week. But what would a takeover mean for estate agents?
UK estate agents currently spend an average of £232.68 per listing on Rightmove, while their Australian counterparts spend between £750 and £1,500 per listing via Realestate.com.au, owned by REA Group.
The disparity in costs underscores a stark difference in operational models between the two country’s main property portals.
Last week, REA Group announced its interest in a potential £4.4bn takeover of Rightmove, signalling a possible major shake-up in the UK property market. This move could bring significant changes for estate agents, both in terms of costs and operations.
In a detailed interview, Chris Watkin engages with Steve Carroll, a former senior executive at REA Group, to discuss the implications of this potential acquisition. Carrol, known for his insights into both the UK and Australian markets, sheds light on REA’s strategy to leverage Rightmove’s dominance to enhance value in the UK property market.
Carroll highlights the transition of REA from a subscription-based model to a pay-per-listing fee structure in Australia over a decade ago, a shift that transformed the relationship between portals and agencies into a partnership model. He notes that this approach, while initially met with resistance, gradually improved to a more collaborative engagement between REA and its clients.
Furthermore, Carroll addresses the pricing transparency in Australia, where all agencies, regardless of size, pay the same rates, with potential discounts only available through commitments to premium listings. This could hint at similar strategies being employed in the UK if the takeover proceeds.
The interview also explores strategic elements that REA might implement in the UK, including customer sentiment improvement, making vendor-paid advertising to pay for these potential increase in portal fees , direct consumer relationships, and enhanced data utilisation to predict consumer behaviour and optimise marketing efforts.
Carroll suggests that these changes could greatly benefit proactive estate agents in the UK, although they might challenge those accustomed to more traditional practices.
This discussion is vital for anyone involved in the UK property market – from estate agents and property developers to investors and homeowners – as it provides a glimpse into how REA Group’s innovative strategies could transform the landscape of property marketing in the UK.
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