Property portals ‘at saturation point and can only raise prices by so much’ – where do they go from here?

The big property portals have reached saturation point – with no new customer agents to recruit.

The big property portals are also being warned that they can only raise prices by so much, and that as long as most of their income comes from agents paying to list, there is not much diversification.

In his latest report, expert Mike DelPrete says RIghtmove and Zoopla have taken completely opposite stances: Rightmove has stuck to the knitting, whereas Zoopla has gone for a ‘one stop shop’ diversification.

Delpret observes that ‘adjacent revenue streams’ are far less profitable than classified listings.

But he also credits Zoopla as being the ‘global leader’ in diversification.

He says its portal-only business accounts for 25% of revenues, and that ZPG has spent a lot on acquisitions, at £450m.

He says it has executed its strategy well.

Despite this, DelPrete thinks that “the verdict is still out on the synergy value”.

It is not, he says, what he would call a runaway cross-sell success. ZPG’s businesses include portals, utility switching, estate agents’ software, and more.

There is a lot in DelPrete’s latest look into the future of property portals which you can see at https://www.slideshare.net/MikeDelPrete/the-future-of-real-estate-portals-preview-100670304

 

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4 Comments

  1. Property Poke In The Eye

    The portals should of stuck with Full Service Offerings to the public from estate agents. (No Sale No Fee, Free valuations, Accompanied Viewings, human feedback, human sales progression etc)

    I believe the FSBO from Purple Bricks, YOPA etc has distorted the market NOT disruted the market. This has forced good businesses offering a proper service out of business as the FSBO sites are subsidised by investors to gain long term market share.

    Portals prices should sit around £250-500 p/m.  That’s where prices will end up if every agent gets their properties listed On The Market which is currently free in order to get as much inventory onto the site.

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    1. Bless You

      That is so true. I can’t see why rightmove and zoopla are actively supporting fake agents who are killing off it’s own members.

      Trade bodies naea and onmarket have proved useless in the media propaganda war. Not even an advert exposing the lies.

      Watched suffrogettes other day. For every fake advert about them they commissioned one as well.

      How much would a national tv advert cost us all and how many agents would it take for £100 per month to fight back?

       Anyone got a good name for the movement? Will get website up and running later . 

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      1. AgentV

        I agree…….but it would need to tell a truth that resonated with the public. We need an alliance that starts getting the message out their first….on an ever increasing basis.

        BSOS23PC

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        1. Bless You

          I just think spoofs of the fake adverts they pur out would be enough so viewers didn’t have to think to much… but tbf the fund would pay purplebricks old advertising company to think of that. Expect they would enjoy that after pb dropped them recently

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