Diminishing Sales Figures and a Contracting Sales Workforce - What's NZ's Real Estate Forecast for 2024?

The New Zealand real estate sector currently confronts a dual challenge, contending not only with a discernible downturn in property transaction volumes but also confronting a decrease in the count of active real estate professionals.

Spanning from December 2022 to December 2023, there has been a discernible reduction in property sales, transitioning from 16,668 transactions to 15,670. Concurrently, a concomitant contraction in the workforce within the industry has been observed.

This synchronous decline has precipitated apprehension and engendered discourse among industry experts.

Factors influencing the Dual Downturn: The interconnected decline in both sales metrics and the real estate workforce implies the involvement of a complex array of contributing elements.

Addressing economic headwinds is imperative, given the uncertainties and fluctuations that can impact property transactions and the stability of agents' incomes. The reduced demand for properties during economic challenges underscores the need for a strategic and adaptive approach.

Technological transformation has played a significant role in redefining real estate business practices. The introduction of digital platforms and tools has streamlined processes, enhancing efficiency but also contributing to a reduced reliance on a large sales workforce. Automation, driven by technological innovation, is changing the dynamics of the industry.

Changing consumer dynamics further complicate the traditional role of real estate professionals. The evolution in preferences and expectations towards personalized, tech-savvy services is reshaping the structure of real estate teams. This shift in consumer behavior directly impacts the number of agents needed to meet market demands.

The ongoing repercussions of the COVID-19 pandemic have prompted professionals in the real estate sector to reassess their commitment to the industry. Some individuals are opting for alternative career paths or taking temporary breaks due to pandemic-related challenges.

Navigating this dual downturn requires a strategic and adaptive approach from both professionals and industry stakeholders.

Upskilling and adaptation are critical for real estate agents to thrive in a challenging environment. Continuous learning, embracing new technologies, staying informed about market trends, and refining negotiation skills are essential components of remaining competitive.

Real estate agencies must expedite the integration of technology to streamline operations and enhance the overall client experience. Utilizing digital platforms, virtual tools, and data analytics positions firms to thrive in the evolving market.

Recruitment and retention strategies become paramount in light of the shrinking sales workforce. Real estate firms need to reassess their approach by offering attractive compensation packages, mentorship programs, and opportunities for professional development to attract and retain top talent.