Launch of business in Australia

RNS Number : 3138I

Purplebricks Group PLC

28 August 2016

 

28 August 2016

Purplebricks Group plc

Purplebricks announces launch of its business in Australia

Initial regional focus on Melbourne and Brisbane before national roll-out

Purplebricks Group plc (AIM: PURP) ("Purplebricks" or "the Group"), the hybrid estate agent providing a new way to buy, sell or let property, announces that it is formally launching its business in Australia today, 28^th August 2016, with an initial regional focus on Melbourne and Brisbane before rolling out nationally.

Australia represents a £3.3bn real estate market*¹, and the Group's market research indicates that its compelling proposition of high quality customer service coupled with a competitive flat fee structure will appeal in a market where sellers are currently charged an average of 2.2 per cent in agency commission and an average $2,500 in marketing costs.

Purplebricks' pricing in Australia will be a flat sales fee of £2,616 (Aus $4,500) which will include photography, marketing and advertising on platforms Domain.com.au and RealEstate.com.au, as well as the Purplebricks Australia website. Given the role of auctions in the Australian property market, Purplebricks is offering an additional auction facility with a small top-up fee of £480 (Aus$825), which includes an auctioneer and all viewings held by a Local Property Expert. Based on the median Australian house price of £357,000 (Aus$614,000), the Purplebricks' flat fee will save property owners an average of £6,690 (Aus $11,500). The Group has also partnered with RateSetter Australia, a leading alternative finance company, to provide a deferred payment option for customers.

Following its launch approach in the UK, Purplebricks will initially launch in Melbourne and Brisbane and then roll out its offering to Sydney, Perth and Adelaide later this year. As previously announced the Group intends to invest £10m in the Australian business over the next two years which will be funded from existing cash resources.

The Group has recruited a strong management team led by Australian CEO Ryan Dinsdale, Luke Pervan (National Sales Director) and Joby Russell (Chief Marketing Officer) who is relocating from the UK business. The Group's initial intake of Local Property Experts has been recruited and further recruitment continues as part of the growth strategy.

CEO Michael Bruce comments, "Australia is a natural second market for us to target. It is a large and fiercely competitive real estate environment, but one where sellers are currently receiving poor value for money. We will offer the Australian public far greater transparency and a fairer way to sell their homes. We are very excited about the size of the market opportunity there, and believe that the expansion outside of the UK provides both additional returns for investors and the benefit of diversified income streams."

*¹ Source - IBIS Real Estate Services in Australia Industry Report

*² At an exchange rate of £1 to Aus$1.72

-ENDS-

Enquiries

Purplebricks Michael Bruce, Neil Cartwright	[phone]
Zeus Capital Benjamin Robertson, Nicholas How	[phone]
Peel Hunt Dan Webster	[phone]
Instinctif Partners David Simonson, Mark Reed, George Yeomans	[phone] or [phone]

About Purplebricks

Purplebricks is the leading next generation estate agency in the UK that combines highly experienced and professional Local Property Experts and an innovative use of technology to help make the process of selling, buying or letting so much more convenient, transparent and cost effective. Purplebricks is transforming the way people perceive estate agents and estate agency.

 

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