GOOD MORNING FROM ELITE AGENT

Why would your clients settle for a backyard when they can have the whole ocean? Debra Kilgore, 63, is swapping her landlocked lifestyle for life aboard a US$1.9 million floating home on the MV Narrative, a luxury residential cruise ship setting sail in 2027.

Besides the cost of the unit, there is an additional annual fee of $68,000 per unit which covers everything from meals to laundry and activities, to sports gear, housekeeping, 24/7 room service, and the costs of running and maintaining the ship. This is downsizing on another level - literally.

Today’s read time: 4 minutes, 25 seconds

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OPINION

The real estate growth trap - why bigger isn’t always better

Rapid growth is often seen as the ultimate goal in business, but Harvard Business School professor Gary Pisano argues that unchecked expansion can do more harm than good.

His research on nearly 11,000 public companies over 25 years reveals that most businesses struggle to sustain high growth rates, often overextending resources or misjudging demand.

Instead, he advocates for a strategic approach to growth, balancing market opportunities with an organisation’s capacity to meet them.

The risk of growing too fast
Gary warns that companies often mistake short-term opportunities for long-term growth potential, leading them to overcommit resources. "If you try to get past that, you will actually make things worse," he explains, noting that businesses that scale too quickly often stretch their capabilities too thin, leading to operational inefficiencies and financial strain.

In real estate, this could mean opening multiple offices without the right infrastructure or over-hiring agents without enough listings to sustain them.

Why sustainable growth matters
He also emphasises that businesses should not just focus on market demand but also on their ability to supply quality service consistently.

"Growth is about both the demand side, which is the market, and the supply side, what are we capable of doing?" he says.

In real estate, this means ensuring that an agency has the right people, processes, and client base before expanding. The most successful companies, whether in property development or real estate sales, take a measured approach, ensuring that each new venture aligns with their existing strengths rather than simply chasing fast revenue.

A smarter way to scale
Gary outlines a framework for sustainable growth based on three factors: rate, direction, and method. For real estate professionals, this could mean carefully selecting new markets before expansion, investing in training to develop a high-performing team, or leveraging partnerships instead of aggressive hiring.

Read the full story here.

ICYMI, yesterday we discussed: Location, price or sustainability - what do buyers really want?

SMART SNIPPETS

China leads Aussie real estate foreign investment
Chinese investors are dominating Australia’s residential property market, accounting for $0.4 billion of the $1.3 billion in FIRB-approved investments from July to September 2024.

Industry experts attribute this to the seasonal "Golden September and Silver October" buying period, when developers strategically launch their best projects. With upcoming foreign buyer restrictions looming, experts predict a significant surge in early 2025 as international buyers "catch the last train" before new rules take effect.

Homeownership still a priority for Aussies despite rising costs
A new LJ Hooker survey reveals that 74% of Australians still aspire to own a home, with 79% seeing property as a solid investment. However, affordability remains the biggest barrier, with 97% citing high property prices as a major challenge. While traditional homeownership ideals are shifting, (gardens are now less essential, and Gen Z favours home gyms), stability and financial security continue to drive demand.

Rents stabilise for apartments in the US, but family homes remain costly
Apartment rents are levelling out due to increased construction, but single-family rental prices remain high due to limited supply. Zillow reports a 41% rise in single-family rents since the pandemic, compared to 26% for multi-family units. High mortgage rates are keeping renters in the market longer, with affordability challenges pushing many to seek larger rental home

CELEBRITY HOMES

A royal listing: medieval castle in Australia hits the market
A unique opportunity to own a medieval-inspired estate has emerged in South Gippsland, with "Versace Castle" listed for $1.4-1.475M. Set on 68 acres of rolling countryside, this extraordinary property features 3.9-metre ceilings, hand-painted textured walls, and imported Italian stone floors.

The sale includes an impressive collection of medieval artefacts, antique furniture, and Italian tapestries - including hand-carved European beds from the 1700s.

MOVERS + SHAKERS

Ray White's 17th call-a-thon generates impressive results
The Real Estate of Origin event secured 9,568 property appraisals across Australasia in a single day, with Queensland taking the win at 3,147 appraisals. More here.

Success doesn’t rest on weekends! 
Get the latest on top agent and agency moves every Sunday with our weekly roundup in Movers & Shakers. Subscribe now.

SOUNDWAVES

Why workplace camaraderie is the key to a thriving team

A strong sense of camaraderie in the workplace goes beyond casual chats; it directly impacts employee engagement, productivity, and retention. This curated listen explains that when employees feel connected and valued, they are more motivated, collaborate better, and contribute to a positive work culture.

Dive straight into the listen below or the deeper dive here.

Read the article from Warmly here.

AGENTS ON SOCIAL

When your partner is a real estate agent, forget lazy weekends, you're officially on-call for furniture moving, last-minute DIY, and "just hold this sign for a second" duties. 🪧💗

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

Wishing you a productive day

Elite Agent is crewed by Mark Edwards, Catherine Nikas-Boulos, Rowan Crosby, Charmagne Arrubio and Samantha McLean. We aim to uplift the real estate industry by delivering forward-thinking, hype-free news and education that fosters knowledge and fuels ambition.

Stories marked with * are sponsored, including 'Together With' and the weekday 'Movers & Shakers' sections. Interested in promoting your brand to Elite Agent’s audience? Learn more at eliteagent.com/advertise.

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