Estate agent disrupter Purplebricks has launched into the Australian market.
The online platform is now offering sellers in Brisbane and Melbourne the opportunity to advertise their properties for a fixed flat fee which saves them thousands of dollars compared with the traditional high street estate agency model.
The platform will be extended to Sydney, Perth and Adelaide later this year.
CEO and co-founder Michael Bruce said: “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.”
He added: “Since launching Purplebricks into Australia 24 hours ago, the interest and demand from homeowners has been incredible.
“We are delighted and it has certainly shown us that Aussies are truly ready for a change from the overpriced commission model to one that will save them thousands of dollars when selling a home.”
The Solihull-headquartered firm will invest £10m into its Australian business over two years.
Ryan Dinsdale, formerly of online broker CommSec, telco Telstra and Virgin Money, will serve as chief executive of the Australian operation.
He wrote on LinkedIn: “I am extremely privileged and excited to be bringing Purplebricks to Australia.
“Purplebricks has been a huge success in the UK and we believe it is exactly what the Australian public have been waiting for.”
BusinessCloud featured Purplebricks in its maiden edition in June.
Outside of the industry, few people had probably even heard of the firm when it floated at the end of 2015 with a market cap of £240m.
The company was only incorporated in April 2012 so to be admitted onto AIM – the Alternative Investment Market – so soon highlights the impact technology has had on the sector and the way it is changing the estate agency world.
Its research has shown that people understand where technology is improving their experience of selling a property, but they still want the human element.
Travel agents are also being disrupted by online services as more of us look to book holidays online rather than on the high street.