Australia’s management rights industry has settled at a “new normal,” according to ResortBrokers Research’s third annual Management Rights Report.
Property Economist Josh Mangleson, the report’s chief author who heads ResortBrokers Research, says multipliers have returned to levels more resembling the state of the management rights market prior to the pandemic.
“Downward pressure on multipliers has been driven by two factors,” says Mr Mangleson. “First, interest rate hikes have increased borrowing costs. Second, real estate price increases mean buyers can’t afford to pay as much for the business component of management rights to get the same return on investment. There has been a real shift in the industry to focus more on return on investment than multipliers.”
For Management Rights Report 2024, ResortBrokers Research analysed data provided by five new external data partners: Knight Frank Valuers, CBRE Valuers, JLL Valuers, Acumentis Property Valuers and Heron Todd White. These new partners join ResortBrokers Research’s established data partners, Accom Valuers and ARAMA, the industry’s peak representative body.
“With eight data sources — seven external data partners plus ResortBrokers’ own sales data — we’re now more confident than ever in the accuracy of our combined sales data, with our market coverage exceeding 90%,” says Mr Mangleson.
“We now know of over 4,250 schemes nationally, which represents over 310,000 lots under management worth an estimated $211 billion. We now estimate the value of the overall industry to be $9.4 billion.”
Management Rights Report remains the only quantitative analysis of Australia’s management rights industry. The 2024 report builds on previous reports in 2022 and 2023.
As with prior reports, ResortBrokers Research sought written feedback from management rights operators across the country via an online questionnaire. This year’s report drew responses from 300 operators nationwide.
“We were very encouraged to see most operators rated their committee’s industry knowledge quite highly, with the most common score being 8/10,” says Mr Mangleson.
“Also encouraging was that 87% of operators reported a constructive relationship with their body corporate committees.”
ResortBrokers Research is the research arm of ResortBrokers, Australia’s largest and most experienced specialist agency in the accommodation property sector. ResortBrokers, which has been active in management rights for 30 years of its 40-year history, is the market leader in the sector, handling approximately 40% of transactions.
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