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An ASX-listed real estate group has achieved record sales listings and substantial revenue growth in the past quarter despite the slowing property market.
Commission-free real estate company buyMyplace has achieved its largest quarterly revenue in five years, up 18 per cent on the prior quarter. Its gross profit was up by 25 per cent on the prior quarter.
While some real estate agencies have reported challenges in the current market, buyMyplace has experienced a significant surge in property listings, with February and March 2016 being the largest in the company’s seven-year history.
Paul Heath, buyMyplace CEO, said it has been a fantastic start to 2016 for the company, with the best quarterly financial results for five years, coupled with the highest number of property listings the group has ever seen.
“The business is tracking well against internal projections and, with all things following their current trajectory, we expect these results to continue to be strong going forward,” Mr Heath said.
“We are very pleased to see the strength and growth of this business, particularly as the real estate market has started to slow down in some states,” he said, adding that listings increased 31 per cent nationally, with strong growth rates in NSW and Sydney in particular.
Mr Heath said disruptive businesses like buyMyplace tend not to be affected by normal market trends as, by definition, they are operating against established trends, practices and business models.
The group has also recorded a 35 per cent increase in unique visitor traffic to its website following a targeted test marketing campaign in Queensland and Western Australia that is being rolled out nationally.
The disruptive real estate group says its business model means that the more the property is worth, the more the vendor will save.
“Based on median dwelling prices in capital cities, vendors can save $23,000 in Sydney, $17,500 in Melbourne, $15,800 in Brisbane and $19,000 in Perth,” Mr Heath said.
[Related: McGrath admits to poor sales amid 'challenging' market]
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