Residential commission for real estate agencies rose 10% in the third quarter year-on-year, showing signs of steady growth
Residential real estate agencies appear to have had a reasonable third quarter this year, with total sales commissions up almost 10% compared to the third quarter (Q3) last year.
Interest.co.nz estimates the industry earned $440.5 million in gross residential sales commissions in Q3 this year, compared to $400.9 million in Q3 last year.
As the graph below shows, quarterly commission levels have climbed slowly but steadily this year. In Q3 they were at their highest level in any quarter since Q1 2022, which was at the tail end of the post-Covid lockdown boom.
However commission levels are still well below the estimated record high of $693.4 million achieved at the peak of the boom in Q4 2020.
The latest result suggests industry revenues are now well up on where they were prior to Covid, and are showing some signs of ongoing growth. However, they show no signs of returning to the extraordinary levels achieved in the Covid-era boom of 2020-2021.
But neither do they show any signs of an imminent crash, unless there is an unexpectedly significant decline in sales over the coming summer months.
Around the main centres, the sale of residential property in Auckland earned the industry an estimated $164.7m in gross commissions in Q3, followed by Canterbury $65.0m, Wellington $42.2m, Waikato $41.6m, Bay of Plenty $28.8m and Otago $23.4m.
