The NSW residential property market lagged behind the other states in terms of the number of properties sold and average days before sale, according to a national survey of over 300 real estate agents by Macquarie Relationship Banking.
Only 9% of real estate agents in NSW said they usually clear properties in less than 28 days, well behind Queensland on 26%, Victoria on 32%, with Western Australia leading the way on 44%.
The average West Australian real estate agent sold 248 properties in 2007 and charged a 2.9% commission, followed by Victorian agents averaging 206 properties sold and 2.2% commission and Queensland agents on 144 properties a year and 2.6% commission.
Once again, way down at the bottom of the list was NSW. Real estate agents there sold an average of just 85 properties in 2007, although they at least achieved a decent average commission of 2.4%.
Macquarie’s joint head of real estate Nick Dowling predicts that the boom time West Australian real estate agents have enjoyed in 2007 may be set to slow down somewhat in 2008.
“In 2008, WA real estate agents will be looking to make their businesses more efficient by fine tuning overheads and other costs, which tend to get away from you when the market is very strong,” Dowling says.
The survey also found that the internet is well and truly entrenched in the business of selling property.
The highest paid 1% of agents are making more than $1 million a year, but most (65%) are earning less than $100,000.
The highest earning agent sold about $100 million worth of real estate and reaped gross commissions of $2.2 million.
But most agents are giving a huge cut to their boss. The owner of the business takes about 60% cut on average, according to Macquarie.