1H FY23 Investor Presentation
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$3.1bn
$52.9m
Increase in National Market Share in 1H $2.6bn
$45.7m
FY23 1.15%
$2.2bn
$38.1m
0.92%
0.90%
Although we are increasing national market share,
state mix of sales and average selling price 0.70%
$1.5bn
movements have impacted Gross Sales Volume $24.9m
2,910 2,847 $1.2bn
0.57%
and lower Gross Commission Income. 2,407 $17.8m
WA Average Sale Price in the period was +8.2% 1,595
1,129
in 1H FY23, while NSW Average Sale Price was -
9.6% in 1H FY23 which are both outperforming
market movements (+3.6% and -12.1%
respectively1). No of Properties Sold National Market Share Gross Sales Volume Gross Commission Income
($M)^
1H FY19 1H FY20 1H FY21 1H FY22 1H FY23
National Market Share Source: The Agency # of Sales / Estimated Properties sold per CoreLogic Economist Park (Jan 2023)
Note – recent months sales are subject to revision by CoreLogic
1: CoreLogic
Across 2022, the broader industry saw a number or lower performing
agents exit the industry as a result of the tough operating
environment on the East Coast. The Agency achieved good
recruitment in Western Australia during the period as we focus on
gaining market share in the premium western suburb markets.
The Agency expanded its presence to Rockhampton and Capricorn
Coast in QLD in December 2022 as part our objective to have a
stronger local presence in regional powerhouses to better service our
clients at the local and national levels.
Appointment of Chief Marketing Officer and National Head of Brand.
Launch of National Brand Refresh to align all regions under a single brand
guidelines to improve brand recognition and penetration.
National Brand Refresh launch coincided with a launch a new website to maximise
engagement and generate sales, landlord and recruitment leads. Further work is
being done to further enhance the leads from the website across property
appraisal and landlord leads.
Launch of bespoke marketing offering that coordinates inhouse all agent marketing
requests to generate better consistency of brand.
Variety of local level brand campaigns across various markets to complement
agent campaigns to build brand awareness.
We have made significant investments in the area of data strategy and security with the appointment of a Chief
Technology Officer. The CTO will focus on identifying efficiencies and deliver efficiency savings, along with
leading IT investments that support and enhance our growth strategy as we scale nationally.
Connecting our systems
The Agency has undertaken a nation-wide project to consolidate all of our systems and ensure they work
together more seamlessly. Progress to date has focused on the collation of data into a data warehouse which
allows greater visibility of our customers across our various software platforms used across departments
(sales, property management and ancillary services). This allows our team members to provide more
meaningful interactions with our customers across all geographic regions and across all arms of the business.
Connecting our suppliers and services
The Agency has continued the integration of best in class IT solutions that provide Agents with a better
experience through the integration of suppliers across the entire property journey lifecycle. This ensures a
better experience for our agents and ensures The Agency has a competitive difference.
Seamless onboarding for our agent recruits
The Agency has built proprietary technology and workflow process that assists in onboarding agents and
agencies without the need to change their existing technology they are familiar with. This allows for rapid
transition into the technology ecosystem which results in lower training time required for new agents.
Notwithstanding a softer market environment, to ensure solid foundations for
future growth, continued investment on a number of strategic initiatives have
been undertaken.
During 1H FY23 The Agency undertook a number of strategic As part of a mortgage broker departing the Group’s mortgage
initiatives including a branding refresh, data consolidation business, The Agency sold a portion of its Mortgage trail book
strategy, data security review and establishment costs relating consisting of the departing broker’s trail book, client list and
to MDC Trilogy group. Combined with general cost inflation database to the departing broker. Gain on Sale of $1.51m was
these initiatives will result in increased operating expenses. recognised, with cash proceeds of the sale received on 9
January 2023.
The Agency remains committed to reducing the Cost of Doing
Business Ratio and taking advantage of economies of scale as
our agent population and sales revenue grows.
1. Underlying adjusted for the impact of AASB16 Leasing Standard and Impairment Reversal in the prior period.
2. Operating Expenses Pre AASB16 Leasing Standard as a percentage of revenue
n.m. – Not Meaningful
Residential Real Estate $9.3 Tn
Australian Superannuation $3.3 Tn
Australian Listed Stocks $2.8 Tn
Commercial Real Estate $1.3 Tn
Total Annual Addressable Market* (GCI)
Source: CoreLogic, RBA, APRA, ASX
* Assessed at 1.50% Average Commission Rate of Gross Sales Volume of $494.6Bn.
NSW -30.2%
In the 6 months to 31 December, Australian VIC -23.1%
market volumes have reduced 21.6% from
prior corresponding period.
QLD -26.6%
The Agency has recorded better than system
performance with volumes reducing 2%. This
has led to increased market share of national SA 2.3%
transactions.
WA -0.2%
TAS -18.8%
ACT -3.9%
Source: CoreLogic
State Breakdown of Transactions Volume
(12 months to December 2022)
WA 66,833
In the 12 months to 31 December, NSW and NSW 142,654
Queensland represented approx. one quarter
SA 39,071
of the national sales volume, followed closely
by Victoria at 22%.
NT 3,821
Increased organic agent recruitment and TAS 10,292
MDC Trilogy Group capital deployment will
improve The Agency’s market share in these ACT 9,804
key growth markets.
QLD 129,599
VIC 112,268
Source: CoreLogic
Investor Participation at 33.6% is slightly
below the decade average of 34.6%. ACT
NSW is the state with the highest investor
TAS
participation with 37.4% of lending to
investors, while WA has grown to 29.0% in
December 2022, up from 21.8% in December WA
2021.
SA
QLD
VIC
NSW
AUST
Source: CoreLogic, ABS
% of loans originated with an LVR >= 90%
14.1%
13.1% 12.7%
10.8%
10.2%
9.6% 9.5%
8.3% 8.0%
5.1% 5.2%
4.5%
3.4%
Mortgage originations for ‘risker’ types of lending 2.9% 3.0% 2.8% 2.5% 2.3%
trended notably lower through 2022.
Furthermore, as increased interest rates were
incorporated into new mortgage application
assessments, the percentage of loans with a loan
to income ration of greater than 6.0x reduced to
7.3% in the Sept 2022 quarter, down from a peak of
% of Loans originated with income ratio >= 6.0x
11.0% in the December 2021 quarter.
24.3%
23.3% 23.1%
21.9% 22.1%
18.9%
17.3% 17.7%
16.3%
10.3% 11.0% 10.3%
10.0% 10.1%
8.2%
7.0% 7.3%
6.0%
Source: CoreLogic, APRA
1. Underlying adjusted for the impact of AASB16 Leasing Standard and Gain on Sale.
n.a – Not Applicable
n.m – Not Meaningful
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