GOOGLE
PROPERTY
of AUD 8,000 to AUD 12,000 compare
with subscriptions of AUD 4,000 to AUD
6,000. While the figures stack up, it’s
unlikely that most agents will pull out of
their contracts, at least in the near term
However agents are certainly interested
by the opportunity to reach more eyeballs
at a low cost. Lindsay Cuthill says “We
know everyone’s first property search is
initiated online, and our hope is to get our
client’s property in front of the right
people.” If Google can help Savills do that,
If Google wants
then he is interested. His main concern is
pricing. “Google is immensely powerful,”
to attract the
he says, “and our worry would be that such
a powerful vehicle might want to charge
premium end of
high fees. Still, it’s like airlines – the more
people there are wanting to fly you around,
the market, it will
the cheaper it will get. It’s likely to get
cheaper – that’s what you hope.”
have to make its
Ed Freyfogle points out that free listings
might be counter-productive, though.
pages sufficiently
A property search on Google Australia “Free encourages spam,” he says, and
speculates that agents might even fake
attractive for the
Lindsay Cuthill, director at Savills, says listings to attract enquiries. “Data quality
Google will also have to understand the is already a huge problem in the industry,”
upmarket buyer.’
agent’s need for suitable branding. “You he says, “and we believe ‘free’ makes the
hope that the portal reflects to some extent problem worse rather than better.” LINDSAY CUTHILL DIRECTOR SAVILLS
your own brand and aspirations,” he says. And though most observers, so far,
“We like to think we’re an aspirational believe that Google will come into the created from inside the industry, protected
brand, so we want the portal to reflect this market with free listings – as it did in agents by maintaining a policy of not
in some way. We don’t want to be on a Australia – agents should be suspicious allowing private sales. If Google in the UK
mass market portal if they’re only attracting of the idea that it will be free forever. After follows the Australian model, it will source
the mass market.” If Google wants to all, The Times online has been free since its ads from Google Base, the classified
attract the premium end of the market, it it started, which hasn’t stopped Rupert engine, and anyone can enter an ad, says
will have to make its pages sufficiently Murdoch planning to charge for content. Simon Baker of Property Portal Watch.
attractive for the upmarket buyer. Ed Freyfogle warns “Everyone needs to By bringing buyers and sellers together,
For the last couple of years Rightmove ask themselves if they believe there is such Google’s property listings could cut agents
has continued to increase its revenues a thing as a free lunch? Is it plausible, in the out of the equation. It will certainly create
despite the downturn in the residential long term, that a publicly listed corporation greater transparency in the market.
property market. It hasn’t lost agents, will continually give you things for ‘free’? But the biggest difficulty Google faces is
despite the cost of monthly subscriptions Or are they entering the market, building that of cannibalisation. Its main revenues
and the advent of pay-per-sale or lead position, to then exploit that position?” come from selling paid search results
competitors – no one is willing to lose a (pay per click). So the property search is
client by admitting they don’t advertise on THE GREATEST RISK OF ALL competing against its own most profitable
Rightmove. Simon Baker notes that the Agents who think Google offers them product – and that represents a major risk
Australian subscription sites only have to a risk-free way to cut their costs should for Google, says Ed Freyfogle. He knows
make one sale for the agent to break even also consider the possible danger to agents from experience working at Yahoo that
on the subscription. Average commissions themselves. Rightmove, having been sometimes the left hand doesn’t know what
the right hand is doing. “From the outside
looking in,” he speculates, “based on
feedback from Australian players, it seems
Google has entered the market in a clumsy
way that does its best to offend and scare
their existing customers.”
By bringing buyers and sellers together, Google’s
property listings could cut agents out of the
Google will offi cally launch at the Property
equation. It will certainly create greater
Professional Show on May 17. See page 31.
transparency in the market.’
Add your own opinions to the debate:
www.propertydrum.com/articles/googlefeb
16 FEBRUARY 2010 PROPERTYdrum
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