Purplebricks Oz The ‘Aldi Of Real Estate’

Purplebricks’ Australian 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 industry.

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Source News.com.au
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