Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Democratise disruptors to gain a competitive advantage in real estate

Disruption is inevitable in all industries including real estate, says CoreLogic CEO Lisa Claes. But while we can’t halt the wave of change, we can ride it to our advantage.

The way we consume products and services is evolving at an exponential pace. Taxi services, holiday accommodation, and entertainment are just some of the industries that have been turned upside down in recent years.

No industry is immune to disruption, including real estate.

Advertisement
Advertisement

Having successfully carved a niche in short-term holiday letting, Airbnb recently announced it is throwing down the gauntlet to the traditional players in Australian real estate rentals. And no wonder; it’s an unquestionably lucrative market.

CoreLogic data shows that 476,582 residential properties changed hands in Australia over the past 12 months, with purchases by investors accounting for 23.7 per cent. although data isn’t available historically, there has been a steep increase in investor activity over recent years. Five years ago, investors accounted for 43.7 per cent of all new housing finance commitments compared to 48.3 per cent currently. 

The industry is rife with speculation as to whether this virtual rental agency will flourish or flounder – but worrying about the future is futile. Rather than burying your head in the sand, ask yourself: how can I position my business accordingly to thrive in the face of competition?    

Arm yourself with knowledge

Knowledge is power, as the saying goes, so use data to your advantage and become an expert in your field. Having access to reliable data can build confidence in your decision-making and help position you as a trusted advisor to your clients, so read voraciously and keep up to date with housing market trends. 

Investigate the competition and understand their business model: how do they make their money? What customer need are they meeting? What are they unable to do as well as you, and how can you use this to you advantage?

Refine your value proposition

Your value proposition is your unique selling point – and it should evolve in line with the market and customer needs. There is no singular way of doing something, so consider where there is room for innovation. Perhaps there’s an opportunity to offer staggered service levels and adjust your fee structure accordingly? Or maybe there’s room to evolve the way you market your services digitally? You could even explore a hybrid model that utilises the best of the traditional and challenger worlds.

Evolution doesn’t have to be drastic, neither does it have to take place overnight, but history suggests it does have to take place eventually. Because, like any industry, it’s inevitable that the way we buy, sell and lease real estate will evolve at some stage. And if it’s not Airbnb that disrupts the market, it won’t be long before someone else does.

Opportunities abound for those who create them, so embrace the challenge head on, develop a consumer-friendly proposition and remain agile in the face of industry change.

Democratise disruptors to gain a competitive advantage in real estate
CoreLogic CEO Lisa Claes, real estate, disruptor
mortgagebusiness

 

Latest News

 A big four bank has announced that its cash earnings will be hit by a further $341 million in remediation costs. ...

The residential property market remains “overvalued” and is approaching a tipping point, an economist has said, despite recent signs of ...

The debate surrounding the efficacy of stamp duty has resurfaced, with the NSW government launching a new review into its revenue system.  ...

FROM THE WEB
podcast

LATEST PODCAST: Transparency around rate cuts

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.