As real estate professionals gathered for the third REAP Dashboard Profit Symposium, there was one elephant in the room - Productivity. 

The whole sector is under pressure, with some of the lowest listing numbers in recent memory making the sales market highly competitive. The REAP data showed exactly where the pressure is coming from and those who ignore it, do so at their own risk. Everyone in the room left with a much clearer picture of where the market is heading and the changes they need to make in their own businesses.

Chris Mercer, REAP Dashboard's CEO & Co-Founder, presented an in-depth analysis of the REAP20 dataset, collected over four years and encompassing sales, property management, overheads, and profitability. The data detailed the real numbers on fluctuating sales revenue and profit margins, showed in black and white the decline in productive agents impacting deal volume, and challenges in maintaining profitability amidst variable revenue and overhead costs. 

In this challenging time, principals have halved the number of listings they are making, contracted lead sales agents share of sales commissions has crept higher and higher. In Property Management increases in rents and turn over of leasing is carrying many businesses, whilst the average salary for a PM has increased 26% in the last two years, but the average number of properties a PM can handle has not improved in 20 years. Productivity is in decline. 

Speaker Josh Symons, the Director of Product Strategy & Industry Principal at MRI Software reinforced the broader risk of failing businesses in the real estate sector. With assets in property in Australia holding more value than both the ASX and Superannuation combined, we must move as a sector to focus on data and analytics, to address industry challenges and trends. 

The data demonstrated that more agents are leaving the field, fewer productive agents and a deficit from sales being carried by property management. With these challenges, speakers, Tanya Delkou, and Sarah Heuvel, Partners from Bay Bridge, explored insights on succession planning versus structuring businesses for growth. Challenging those in the room to make conscious decisions to either grow and move toward the exit. 

A panel discussion featuring industry leaders Peter Matthews, CEO & Co-Founder of Realtair, Dean Mackie, CEO of DiJones Real Estate, and Tracey Dixon, Director at McGrath Hunters Hill emphasised the evolving real estate landscape and the importance of technology, leadership, and accountability in driving positive change. 

The REAP Dashboard Profit Symposium 2024 highlighted the imperative of leveraging data-driven insights to navigate challenges and capitalise on opportunities. Attendees departed with a printed REAP Profitability Report and actionable strategies, enriched by a deeper understanding of industry dynamics.

Chris Mercer, REAP Dashboard's CEO & Co-Founder, said, “I recommend to all real estate business leaders and their advisors, get your hands on the data, have conversations not anchored in assumption and anecdotal evidence, but the hard facts.”

“This really is a time where those brave leaders will set themselves up for a bright and shiny future, those who fail to plan will have nothing but a plan for failure. You get to decide which you will be.” Concluded Chris Mercer, REAP Dashboard's CEO & Co-Founder. 

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Productivity is Real Estate Agency’s greatest threat - REAP Dashboard