Over the last twenty years one of the key challenges for investment managers has been to identify the sectors most likely to “go digital” and the likely disrupters to gain. This article from Seneca Investment Managers looks at Purplebricks – the online estate agency.
“The anchor of bricks and mortar stores will likely prevent traditional agents competing on cost, and if the online alternative can continue to provide quality service, it is hard to see how the high street estate agent can prevent itself from being the latest casualty of the digital revolution.”
“Millennials are only now beginning to join property buyer ranks and therefore it follows that we should expect a correlated rise in the uptake of online estate agency use. “
“Low personnel costs and a lack of bricks and mortar expenses means that fee per instruction at Purplebricks can be offered at a much lower rate than the traditional estate agents.”