Bayleys cracks $2 billion

By Campbell McIlroy

Friday 28th April 2000

LIFESTYLE BOOST: John Bayley

Bayleys became a multi-billion dollar business last year when the company clocked up record sales worth more than $2 billion.

The real estate company sold 4763 commercial, industrial, residential and rural properties, 53% more than the tally for the previous year ending March 1999.

The total gross value of its signed sales was $2.062 billion, a 41% increase on the previous year. Sales that were settled last year rose from $1.17 billion to $1.69 billion, a 44% increase.

The figures are a breakthrough for the company which has been hovering around the $1.5-$1.7 billion mark for the last few years.

Bayleys principal John Bayley said 1999 was no boom year for the industry but lower interest rates and an improvement in the economy provided the catalyst needed to lift the market out of the doldrums.

In recent years Bayleys had increased its franchise programme, a major contributor to last year's record, Mr Bayley said.

The company opened new offices in Paihia, Rangiora, St Heliers and Nelson.

The success of the franchise operations came from the strength of the established corporate structure which all franchisees could call on for support.

The best performer for the year was the lifestyle market. Bayleys identified the potential in this area and established a "country" section to take advantage of it.

A year ago the company had only three people working in this area; now it has 60 to 80.

The section handles properties larger than 2ha and Mr Bayley said he expected the country and lifestyle section of the market to increase another 12-14% over the next year, up from 5-7% this year.

Although the Auckland office still produces most sales, about 43% of last year's total, the biggest growth in sales has come from the franchise operations, which experienced sales growth of 113% over the last year.

Mr Bayley said he was confident the company could maintain sales of over $2 billion in the next financial year.

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