Thursday 14 Jul 2011
July 14, 2011 – Leading residential agency, McGrath Estate Agents, have recorded a milestone in their 23 years of operation. The company was up 14% on the previous year despite a softer residential market, clocking in $5.7 billion in residential sales for the 12 months ending June 30, 2011 from 5,993 properties. This compared to the corresponding FY10 of $5.0 billion from 5,095 properties and $3.25 billion from 3,485 properties in FY09. Throughout FY11, the group opened four new offices.
McGrath Eastern Suburbs led the way with $1.21 billion from 1,035 sales (+8.03%), which Chief Executive John McGrath said was an outstanding achievement and for the last two years consecutive years has set the Australian record for a residential sales office.
Mr. McGrath said "We believe irrespective of market and economic conditions, good agents can deliver the right results for their customers. The past 12 months has been somewhat of a roller coaster in the residential sector with many locations experiencing their toughest conditions for many years, however, I believe our results indicate that good sales can still be made in less certain times. If you price listings correctly and market them strongly utilising all available sales channels, results will flow."
The sales for the group were diverse in price segments with 1,393 sales above $1M, and 375 sales above $2M. The company recorded 40 sales above $5M.
Mr. McGrath adds, "The top end of the market has been most challenging but we have still delivered some extremely strong results for properties above $5 million. The demand is not as strong as we have seen in recent years but sales are still being made. The market appears to me to be waiting for a bit more good news and evidence that the worst of the economic woes are behind us. I suspect when it is convinced of that we will see strong growth in the short term as the market turns."
In releasing his company’s results, Mr. McGrath said "In tough conditions I believe stronger, more experienced agencies are delivering. For many companies this is the first tough market they're endured. If you've been through a few periods like this you learn not to panic, stick to the basics and stay the course. I envisage, barring any macroeconomic disasters, we will see solid growth over the next 12 months in many of the best Eastern state markets."
Other record performances across the McGrath network in FY11: - McGrath Wollongong sold $77 million from 141 sales compared to $21 million in FY10 (+266%)
- McGrath Castle Hill sold $155.6 million from 169 sales, compared to $96 million in FY10 (+62%)
- McGrath Sylvania sold $97 million from 105 sales compared to $69 million in FY10 (+40.6%)
- McGrath Hunters Hill sold $361 million from 285 sales, compared to $287 million in FY10 (+25.8%)
- McGrath Parramatta sold $112 million from 192 sales compared to $92 million in FY10 (+21.7%)
- McGrath Cronulla sold $197 million from 241 sales, compared to $171 million in FY10 (+15.2%)
- McGrath Inner West sold $589.5 million from 573 sales, compared to $568.5 million in FY10 (+3.69%)