PHOTO: FILE
In 2025, New Zealand’s real estate landscape is witnessing a notable shift as many real estate agents depart from large, established firms to join smaller, boutique agencies or operate independently. This trend is driven by the pursuit of higher commission splits and greater autonomy in personal marketing strategies.
EDITORS COMMENT
” The large real estate brands no longer have privileged access to technology systems and salespeople are over paying 50% commission or thereof back to the parent company plus franchise fees. We expect smaller brands that offer real estate salespeople a package support systems, whilst allowing them to personalise their own branding will increase their market share in respect to the number of salespeople and thus sales in 2025″
Market Dynamics and Agent Earnings
The real estate sector has faced challenges, including economic uncertainties and fluctuating housing markets, leading to reduced earnings for agents. Reports indicate that the average commission per agent rose by 14.6%, from $107,800 in 2023 to $120,300 in 2024; however, commission levels are still 7% below the peak levels of 2021.
This financial strain has prompted many agents to reconsider their affiliations with larger firms, where commission structures may be less favorable.
Advantages of Smaller Agencies and Independent Operations
Smaller real estate brands and independent operations offer several benefits that appeal to agents seeking change:
- Enhanced Commission Structures: Boutique agencies often provide more attractive commission splits, allowing agents to retain a larger portion of their earnings.
- Marketing Autonomy: Operating independently or within a smaller firm grants agents the freedom to develop personalized marketing strategies, fostering a unique brand identity and direct engagement with clients.
- Flexibility and Innovation: Smaller agencies are typically more adaptable, embracing innovative technologies and methodologies that enable agents to tailor their services to evolving market demands.
Industry Trends and Future Outlook
The migration towards smaller agencies is reshaping New Zealand’s real estate industry. As agents prioritise autonomy and financial incentives, boutique firms are gaining prominence, offering personalized services that resonate with clients seeking tailored real estate experiences.
This trend is expected to continue, with smaller agencies and independent agents playing a significant role in the market’s evolution. Their emphasis on flexibility, personalized service, and innovative marketing positions them favorably in an industry that values adaptability and client-centric approaches.
In conclusion, 2025 marks a transformative period for New Zealand’s real estate sector, with a discernible shift towards smaller brands and independent operations. This movement reflects agents’ desires for better financial rewards and greater control over their professional endeavors, signaling a dynamic future for the industry.
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