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An online real estate company has posted 67 per cent revenue growth over the last 12 months, lifting profits by 56 per cent.
In a trading update this week, buyMyplace said it has surpassed all previous records to achieve a record quarter in revenue, gross profit and listings, with revenue growth up 44 per cent on the prior quarter and 67 per cent on Q4 2015.
The company has also achieved circa $1.5 billion in property sales since it commenced trading in 2009. BuyMyplace said its sales record is proof its disruptive business model has the credentials to vigorously compete with mainstream players in the traditional real estate industry, where growth for Q4 was “generally considered sluggish”.
“In stark contrast with the traditional real estate sector, buyMyplace saw new listings increase 22 per cent on the prior quarter and 38 per cent on Q4 2015,” the group said, adding that the company recorded gross profit growth of 31 per cent on prior quarter and 56 per cent up on the same quarter last year.
“Average revenue per listing is up 25 per cent on last year and 18 per cent on prior quarter.”
buyMyplace CEO Paul Heath said the strong results show there can be no doubt commission-free sales through buyMyplace works.
“We are experiencing a significant surge in interest post our successful capital raising and ASX listing earlier in the year, with leads and inquiries almost tripling on last quarter,” Mr Heath said.
“These results are backed up by 37 per cent growth in unique visitor traffic to our website, indicating a keen interest from vendors, who have saved around $47 million in real estate commissions and fees to date by selling their property through buyMyplace.”
The business has generated strong awareness of its commission-free sales proposition through targeted advertising online and on television, with new advertisements set to hit screens in late July.
“Many real estate sources are reporting a low number of new listings (nationally down 13.9 per cent in June), but we continue to see proof the real estate industry is ripe for disruption, with our commission-free model remaining unaffected by trends in the traditional real estate sector,” Mr Heath said.
“The opportunity for vendors to save around $20,000 in fees and commissions is compelling and our growth in listings is testament to that.”
The strongest growth achieved in the last quarter was recorded in Victoria and Queensland, with Melbourne and Brisbane leading the way.
buyMyplace recently expanded its product offering by partnering with leading mortgage aggregator AFG to begin offering mortgage, finance and insurance products. The company has also partnered with Movinghub to offer customers utility connection services.
“We remain committed to continually improving our product offering and seeking partners who will deliver value to our customers and shareholders. We are also continuing to see growth in July and are confident a strong growth trajectory will continue through the next financial year,” Mr Heath concluded.
[Related: Commission-free real estate group sees surge in listings]
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