Purplebricks targets New York for latest phase of US expansion
Online estate agency Purplebricks is preparing to launch the latest phase of its expansion into the United States with a move into New York.
The Solihull-based group said it planned to launch into the New York Designated Market Area in the second quarter of this year.
The NY DMA is the largest designated market area in the US, covering 31 individual counties, with more than 7.4 million households and over 20 million people.
Purplebricks said the region was well suited to its proposition, with real estate commissions reaching as high as 7% and an average property sales price of around $561,000. Transaction volumes for homes priced around this level are double the national median.
The high population density of the area should also allow for accelerated brand awareness when compared to other regions, it added in a market update.
The company is now recruiting Local Real Estate Experts (LREEs) in the area and has already established an office in Midtown Manhattan.
Purplebricks began its US expansion when it launched in Los Angeles in September last year and has subsequently expanded into San Diego, Sacramento and Fresno this month.
Michael Bruce, Group CEO Purplebricks, said: “It is a sign of confidence in the potential of the US business that we are today announcing our expansion to cover both the East and West coast, with our planned entry into the New York market.
“With higher than average rates of commission and transaction volumes, New York was the natural first move on the East Coast for Purplebricks.”
While it was still relatively early to assess the US expansion, Mr Bruce said the company was pleased with the progress it had made to date.
“We are encouraged by the exceptional quality of the Licensed Real Estate Agents that we are able to recruit, which reinforces our belief that we will deliver a better service for our customers whilst saving them thousands of dollars and delivering attractive returns for our shareholders as the business continues to grow,” he said.
