Strong start to 2025
A strong start to 2025. Total unconditional sales for the group in January and February 2025 was $ 12.2 billion, approximately 10 per cent ahead of the same period last year. All markets are up, with the biggest growth occurring in Western Australian and New Zealand. This growth is due to a combination of increased market activity and improved market share.
Listing activity across our markets remains robust and consistently ahead of last year. Several interest rate cuts in New Zealand, and an interest rate cut in Australia in mid February, has encouraged many vendors to come to market despite the upcoming Australian election. Most markets are experiencing a finely balanced market that requires us to work hard with both vendors and buyers- a market in which we have always thrived.
Our property management teams have maintained consistency in properties under management, while dealing with further industry regulation and moderating rental growth.
Speaking of growth, we have been curious as to the reasons for our market share growth over the past five years. It has grown by approximately 25 per cent over this period, confirming that as a group we are on the incline.
A common assumption is that our market share growth has come from more offices and more selling members. Neither is true. Our operational foundations comprises 850 reporting businesses( some of these have multiple offices) and this number has not changed over the past five years. Within these businesses, we have around 5,000 productive agents- which is only four per cent more than we had in 2019. So despite having roughly the same number of offices and selling members, we have grown our market share considerably.
Why are we being more productive and efficient? We have identified three potential reasons. Firstly, while the number of offices in our group hasn’ t changed, there has been significant change in the ownership of nearly 40 per cent of these offices- welcoming new leaders and partners that bring fresh ambition and new expectations. Secondly, insights from our Network Finance team tells us that our businesses have invested significantly in sales support over this period, with nearly two extra people per office providing support to salespeople and sales teams. This investment is a great sign of confidence from our business owners in their people. Thirdly, we have remained committed to the auction method and our auction market share has grown from 21 per cent to 24 per cent- we think this is more than just a coincidence!
Growth, leadership and celebrating our elites
We recently held our annual Chairman’ s Elite Performer retreat in Uluwatu, Bali. It turned out to be a magical setting to recognise those members who achieved results that put them in the top percentile of our entire group.
We hosted 130 members and their partners, and designed a simple program that enabled them to enjoy being in beautiful places and connect with their peers. It was a remarkable event made special by the people who joined us.
Our Chairman’ s Elite are the ones that show us all what is possible. They remind us to believe in ourselves, and to be both courageous and resilient as we confront the obstacles that come our way. They don’ t set limits on what might be achieved.
Each year they illustrate ingenuity and creativity to keep improving. They are all unique in their personalities and methods, but share a common bond to be the best they can be. All individuals, on a deeply personal journey, have found their own paths to success for which they should feel extremely proud.
The Chairman’ s Elite celebration together is always special because they recognise in others the sacrifices they have made on their road to success, and the challenges they face to continue their trajectory. It’ s an environment in which mutual understanding and respect quickly blossoms into deep and longstanding friendships.
Their achievements are the foundation of our success. Our success does not belong to the Ray White company, nor a brand. It belongs to those members who have set new standards of performance and service to their customers, and by doing so have taken us into new territory and changed our thinking on what is possible. And that has been our story since 1902. Our responsibility as a family and corporate team has been to provide a springboard to our members to enable them to thrive and achieve Chairman ' s Elite and Elite status.
The recognition of our Chairman ' s Elite doesn’ t detract from the contribution or achievements of all of us. To the contrary, it helps us develop a deeper understanding of what is required to achieve such success and what it means to achieve it. We are all able to recognise those that we wish to emulate, and from whom to draw lessons and inspiration.
We look forward to our upcoming Chairman’ s Elite and Elite Business Owner retreats in Wellington in May.
While there is more thinking and analysis to be done, it seems that much of our improved productivity comes down to leadership, investing in our businesses, and remaining committed to marketing and the auction method. Who would have thought?!
Dan White Managing Director Ray White Group
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