GOOD MORNING FROM ELITE AGENT

June 4 is National Hug Your Cat Day (yes, really), and let’s be honest, when it comes to real estate, the smallest household members often have the biggest opinions. Whether it’s a sun-drenched window, a cosy corner, or a backyard worth patrolling, every cat knows what makes a house feel like home. So while we focus on floorplans and finishes, don’t forget the four-legged experts quietly inspecting the place with their own priorities.

Today’s read time: 6 minutes, 15 seconds

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OPINION

PROFIT LEAKS

Hidden costs draining your PM business (and how to plug them)

Property management agencies across Australia are unknowingly bleeding money in five key areas: staff turnover, manual compliance, scalability limits, reactive operations, and hidden growth penalties. As the industry faces the challenge of managing 20% more properties with 17% fewer people, Curtis Thomson warns that traditional operational models are quietly undermining profitability.

“The way we’ve always done business is quietly bleeding money in ways most owners never calculate,” he says. These costs don’t always show up clearly on the P&L - but they’re eroding margins, lowering valuations, and driving talent away.

The solution? Agencies must start thinking like buyers: optimising for scalable, compliant, and predictive operations that reduce manual drag and unlock real growth.

The talent drain

Staff turnover is more than an HR issue, it’s a financial one. Losing two experienced property managers earning $70k each can cost $25k in direct recruitment alone. “Exit interviews consistently show it’s not about money, it’s about being trapped in repetitive, low-value tasks,” says Curtis.

The compliance side is equally draining: manual trust accounting can rack up $65,000 annually in just salary hours, not to mention audit fees and risk premiums. And the hidden sting? Buyers devalue businesses with high compliance risk, so manual processes don’t just cost money - they cost future equity.

The real growth penalty - and how to beat it

Ironically, adding more properties in a manual setup can reduce profitability. Each new door adds coordination overhead, reconciliation complexity, and risk.

“I’ve analysed P&Ls where agencies were less profitable at 1,500 doors than at 1,000 doors,” says Curtis.

The fix is to think like someone who wants to buy your agency: prioritise scalable systems, minimise manual compliance, and improve margins with size.

“Agencies that get this right don’t just manage more doors; they manage better.”

Read the full story here.

ICYMI, yesterday - what car dealers get right that real estate doesn’t.

TOGETHER WITH DOMAIN

Sustainability goes mainstream

Domain has launched a national campaign off the back of its 2025 Sustainability in Property Report, positioning energy-smart homes as a mainstream force in the market. The data reveals that listings with features like solar panels, passive design, and double-glazing are commanding significant premiums, up to 75% more in some regions. More than half of all homes sold this year included at least one sustainability feature, with buyer demand reflected in a 13.8% lift in listing views for greener homes.

The campaign, backed by the Green Building Council of Australia, includes a new Home Efficiency Hub, video content, and expert guides. Domain’s Director of PR and ESG, Sarah Macartney, says the initiative marks a move from climate anxiety to practical decision-making.

“Energy-smart homes are more comfortable, cheaper to run, and more valuable,” she says. “That’s creating momentum that cuts across postcodes and income.”

Read more about Domain's new sustainability campaign here.

DEPT OF HOMEOWNERS

Record rise in internal refinancing signals fewer movers, more negotiations

More homeowners are staying with their current lenders, with internal refinancing hitting a record 35% of all refinances in the year to March 2025. According to analysis from Money.com.au, nearly 195,000 borrowers renegotiated with their bank rather than switching. Lenders are stepping up with sharper retention offers, sometimes better than new customer rates, especially when borrowers submit discharge forms. For agents, it signals a market where homeowners may stay put longer, making rate negotiations a key conversation point.

DEPT OF $1M CLUB

Australia on the brink of $1M medians

Australia's housing market is accelerating at a pace that could see most capital cities reach million-dollar median house prices by the end of 2026. The national median has already hit $926,806, with Perth leading the charge at 10.8% annual growth. Sydney's trajectory is particularly strong – already at $1.6 million, it could reach a $2 million median by late 2026, especially with more interest rate cuts expected this year.

DEPT OF HOUSING SOLUTIONS

Office conversions gain traction as US cities push to solve housing shortages

US cities are turning quiet office towers into buzzing apartment blocks as housing demand climbs and CBDs stay half empty. In 2023, nearly 5,800 homes came from office conversions, and that number’s tipped to hit over 13,000 this year. New York’s leading the charge, with Chicago and D.C. close behind, thanks to big tax breaks and flexible planning rules.

CELEBRITY HOMES

Billy Joel’s back with another encore, this time in real estate

Billy Joel has hit replay on his real estate playlist, re-listing his sprawling Long Island estate Middle Sea for USD $29.9 million (around AUD $45.2 million). The 14-acre waterfront spread features a 20,000-square-foot mansion, its own beach, a helipad, and yes a piano-shaped pool. First bought in 2002, Joel’s been trying to part with the property for years, but this latest move comes just as he prepares to wrap up his historic Madison Square Garden residency.

MOVERS + SHAKERS

Carmen Briggs inducted into Harcourts Hall of Fame

The 20-year veteran has achieved over $800M in sales and ranked in the top 10 for 18 years while mentoring more than 80 salespeople. More here.

Success doesn’t rest on weekends! 
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AGENTS ON SOCIAL

Making a listing video is basically your chance to be part agent, part tour guide, part TV host. It’s fun, it’s creative, and best of all, the house never talks back.⭐️ 🎥

Seen an Agent On Social we should include? Let us know here (email link)

Wishing you a productive day!

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