Home RSS
Real Estate

RE/MAX breaks R20 Billion Benchmark

The Property Magazine
RE/MAX breaks R20 Billion Benchmark

RE/MAX of Southern Africa has become the country’s first real estate group to break the R20 billion sales mark in a financial year while at the same time being voted the country’s “Best Real Estate Group.”

The achievement was announced at the group’s 13th conference at Sun City today by Marketing and Financial Director Jeanne van Jaarsveldt to a packed delegation heavily flavoured with congratulatory representatives from the United States parent company.

RE/MAX of South Africa is one of the global group’s highest performing regions along with Portugal and Italy.  The group is represented in 65 countries and employs 121 000 sales associates.

The 204-office group was recently awarded the Best Company in the Real Estate Sector for 2008 by the B2B publication, which conducts the annual survey of Top 500 South Africa’s Best Companies. The survey concentrates on ranking South African best practising standards that not only excels in their specific sectors, but which also have a strong set of social, empowerment and development policies in place. The 13-point criteria also includes turnover per employee. The group was also recently voted the “Best Real Estate group in Namibia.”

Van Jaarsveldt announced a national group turnover of R20 025 727 billion for the year ending December 31 with the highest contribution coming from Western Cape with a turnover of R5 128 351 billion closely tracked by Centrals (Gauteng) R5 042 408 billion. KZN, where the group has made substantial market gains to become the dominant player, filled third regional spot with sales of R4 832 915 billion followed by Northern Region with R3 225 158 billion and Eastern Cape R1 711 622 billon.

The balance was concluded by sales in neighbouring countries.

Van Jaarsveldt said all figures represented record turnovers with the national turnover figure up substantially from R15,2 billion recorded in the previous financial year.

He highlighted two major factors for increase. That of the group’s high concentration in second-hand homes as opposed to some of the faltering niche markets, such as new developments, fractional title and leisure projects.  This strength of focus had resulted in January 2008 sales figures of R1,4 billion being 18 percent higher than January 2007 emphasising that the home resale market was still largely unaffected by the cooling conditions. Ninety eight percent of RE/MAX SA sales involve second hand homes. 

The other major factor boosting the group’s market strength had been its founding concept of the so-called 100 percent commission concept whereby its agents retain the entire sales commission while renting desk space and facilities from RE/MAX agencies. This model, according to van Jaarsveldt, had “millionaired” 127 South African agents last year and had proved particularly attractive in the current heavily over traded conditions and the industry’s traditional commitment to shared percentages of commission between agency and agent.

Along with an Absa heavily-sponsored US satellite training programme designed for the SA market and the brand’s industry highest rand spend commitment to above the line advertising of R9,027m last year had greatly boosted recruitment of both agent and new franchise openings. Seven new franchises for this year’s planned total of 40 openings had been signed up in January.

RE/MAX in Southern Africa opened its first five offices in South Africa in 1995.


Disclaimer: The information presented and opinions expressed herein are those of the authors and do not necessarily represent the views of Estates Report and/or its partners.