building foundations, page-104

From my personal and other anecdotal evidence, BYOJet experience is mostly a positive one. Price wise, they are very competitive, and there's a few in the office that's been converted to use BYOJet. So given the low base we are starting, and the white label model we are using to drive growth, I don't see much of a risk in grabbing market share...

The thing with iBuyNew, in my view, is that it is not really competing directly with Domain and REA, given iBuyNew specialises in purely off the plan properties. On those two websites, off the plan properties are far more fragmented. Sure, you have the 'off the plan' section of the REA website that you could go to, but it's not the main focus... and I think REA treats off the plan properties as a sort of advertising rather than commission model?? I may be wrong...

Given the incentive and revenue model in iBuyNew, I view it more closer to a traditional real estate agency business... as such, I see much higher risk in consistency of iBuyNew's revenue than BYOJet... and I would link it more heavily to consumer sentiments, bank lending policies, auction clearance rates etc... keep in mind, there are restrictions on the % of 'Chinese/international' buyers on a project, normally set by the financiers at say 20%... so there is a heavy domestic demand component...

But once again, we are starting from a low base! 20-30 apartments a quarter is not a lot... and last I checked, there are 40,000-60,000 apartments coming online in the East Coast alone in the coming 12-18 months... so I think the market is fragmented enough in the off the plan area for iBuyNew to take a good chunk...

I'm here for BYOJet, the cash from iBuyNew is just a bonus...