operation was to estate agency what Aldi is to the retail sector, so claims a
report on an Australian news site.
News.com.au made the
analogy in its coverage of Purplebricks’ decision to run down and close its
Australian operation, announced this Tuesday.
The reports quotes economist
Stephen Koukoulas of Market Economics, who said that the increase in low cost
or flat fee agents was likely to have the same effect on the real estate agent
industry as Aussie Home Loans (a low interest loans specialist) had on the
mortgage market, or that Aldi and Costco had on Coles (an Australian
supermarket) and Woolworths.
Comparing Purplebricks to
Aldi seems unlikely, on the face of it. However, the thrust of the report seems
to be that although Purplebricks Australia has ultimately failed it
has permanently disrupted the market by forcing established players to be more
competitive. Many might wonder how this will play out going forward in the UK property