Buyer’s agents in high demand as market competition intensifies

Australia’s competitive property market is driving a surge in demand for buyer’s agents, with both owner-occupiers and investors turning to these experts for an edge in a tightening market. According to Matthew Symons of Balmoral Financial, the past five years have seen a marked rise in reliance on buyer’s agents—a trend fuelled by a shrinking housing supply and fierce competition.

Tightening Supply Fuelling Competition

Recent figures from the Australian Bureau of Statistics underscore the market’s tightness, with just 44,884 dwellings completed in the September 2024 quarter—well below the federal government’s target of 60,000 new builds per quarter. As available properties dwindle, buyers are increasingly seeking the specialised support that buyer’s agents provide.

“The biggest factor is definitely a tightening of the housing supply,” said Symons, emphasising that fewer properties on the market have led to heightened competition.

Unlocking the ‘Unfair Advantage’

Buyer’s agents offer clients a range of benefits that go beyond conventional property searches. For owner-occupiers, local market knowledge is key. These agents know preferred suburbs inside out and often have access to off-market opportunities, giving their clients an undeniable competitive advantage.
For investors, the focus shifts to identifying properties with strong potential for capital growth and robust rental returns—a task that demands deep research and data expertise often beyond the scope of the average buyer.

“With fewer properties available, competition is fierce. Buyer’s agents give clients an edge by providing expert guidance, access to off-market opportunities and stronger negotiation power,” Symons explained.

A Parallel with Mortgage Brokers

Drawing a parallel with the rise of mortgage brokers two decades ago, Symons noted that early scepticism has given way to widespread acceptance. Today, around 75 per cent of all loans originate through finance brokers. Buyer’s agents appear to be following a similar trajectory, gradually becoming an integral part of the property buying process—much like they have in the United States.

Despite initial hesitations, many buyers are realising the financial benefits of working with a buyer’s agent. For instance, in a scenario where a $2 million home appreciates by 10 per cent in its first year, the resulting $200,000 increase in equity far outweighs the nominal fee charged for the service.

Looking Ahead

With the housing supply expected to remain constrained in the coming years, the role of buyer’s agents is set to expand further. As more people witness the tangible benefits—be it through smoother negotiations, access to exclusive properties, or significant equity gains—the initial resistance to engaging these experts is likely to fade.

For those navigating Australia’s competitive property landscape, enlisting the help of a buyer’s agent isn’t just a luxury—it’s quickly becoming a necessity to secure the right property in today’s market.