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Residential and commercial agency Stone Real Estate has revealed plans to open 21 new offices in the next 12 months, citing the current flat property market as a perfect opportunity for larger agencies with scale to consolidate market share.
Stone head of franchise Luke Cameron told REB the agency was targeting 65 per cent growth in its national footprint over the 2020 financial year, with a focus on high-quality offices in well-located areas.
“The Stone model is focused and committed to being very deliberate on the calibre of franchise partners joining the group,” Mr Cameron said.
“Based on the current businesses we are talking to, we will increase our footprint with the addition of 21 offices in the next 12 months. These businesses are in strategic locations that are aligned to our core values and high-performance standards.”
Mr Cameron added that current market conditions were ripe for mid-sized agencies to expand, given declining sales volumes meant more boutique offices were looking for the scale and support of being part of a franchise.
“We forecast that there will be a trend towards fewer agencies, and larger, more profitable agencies who have achieved economies of scale will continue to get stronger,” he said.
“Nationally, there has never been a better time to secure market share, whether in regional or metro markets.”
He added that in order to be attractive to agents in the current environment, franchises needed to be willing to provide comprehensive support with issues like training and recruitment as well as at the back end.
“Business owners are looking for leadership and clarity on how to grow and thrive in a tighter market — they are looking for detailed support at a business level,” Mr Cameron said.
“Franchisees are looking for more than just a logo and an annual conference; they want to become part of a community that cultivates the best thinking in terms of branding, recruitment and technology, and allows a franchisee to focus on attracting and developing the best quality people.”
Mr Cameron said Stone was focused on leveraging its scale through technology, allowing its agents better access to leads and peer-to-peer learning opportunities.
“We have implemented an online training platform based on best practice which is accessible by all agents on any mobile device — a key reason has been the collation of best ideas and strategies to enable agents to flourish,” he said.
“We also maintain a focus on implementing digital strategies that will grow our lead generation results for our offices significantly.”
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