MC Broking & Advisory Mid-Year Market Update 2025
As we reach the halfway point of 2025, it’s clear that the real estate business sales and rent roll acquisition market is experiencing significant shifts. Consolidation, buyer caution, and a greater focus on compliance are the dominant forces shaping activity across Sydney and beyond.
At MC Broking & Advisory, we’ve been closely monitoring these changes. Below, we break down the key trends, what they mean for business owners, potential buyers and sellers and where the market may be heading for the remainder of the year.
Consolidation: Big Players Are Getting Bigger
One of the biggest trends in 2025 is consolidation. Put simply, larger multi-office real estate groups are buying up smaller independent and franchised agencies and their rent rolls.
Why is this happening?
Scale creates strength. When an agency has multiple offices and a large rent roll, it spreads its costs more efficiently, gains stronger brand visibility, and achieves more stable cash flow.
Consolidation: Big Players Are Getting Bigger
One of the biggest trends in 2025 is consolidation. Put simply, larger multi-office real estate groups are buying up smaller independent and franchised agencies and their rent rolls.
Why is this happening?
Scale creates strength. When an agency has multiple offices and a large rent roll, it spreads its costs more efficiently, gains stronger brand visibility, and achieves more stable cash flow.
Rent rolls are valuable assets. They provide steady, recurring income every month, making them highly attractive for buyers looking for security in uncertain times. They also provide a listing tool for the future.
Compliance pressures are rising. Running a real estate business today is far more complex than it was ten years ago. With tighter regulation, higher operating costs, and more demand for technology, many small operators feel squeezed. Selling to a larger group can be the easiest and most profitable option.
This is not a short-term trend — it is part of a bigger shift in the industry. We expect to see more smaller agencies decide to sell in the coming years, while the big brands continue to expand.
Sydney Metro Multipliers – Where the Market Is Holding
When valuing rent rolls and businesses, we use “multipliers”. This is simply a number applied to the management income of a rent roll to determine its market value.
For example: if a rent roll generates $500,000 in 100% lettable potential annual management income, and the market multiplier is $3.80, the rent roll could sell for around $1.9 million. Purchase price on a rent roll sale is determined not by last 12 months actual income, but by the 100% future lettable annualised management income.
Here’s where the multipliers currently stand across Sydney:
- Eastern Suburbs: $3.80 – $4.00
- Inner West: $3.60 – $4.00
- Lower & Upper North Shore: $3.80 – $4.10
- Northern Districts: $3.50 – $3.80
- Hills District: $3.50 – $3.70
- Western Sydney: $3.30 – $3.60
- South-West Sydney: $3.30 – $3.60
- Sutherland Shire: $3.80 – $4.00
- Northern Beaches: $3.80 – $4.00
The key takeaway? Multipliers are holding firm. Sydney metro remains one of the strongest rent roll markets in Australia.
However, there is an important exception: large transactions over $3.5million to $4 million. In these cases, we’ve seen discounts of up to 5%. That’s because there are fewer buyers with the cash or funding available to commit to such big-ticket acquisitions. Smaller and mid-sized deals are moving more smoothly.
Buyer Behaviour: More Caution, More Questions
In 2025 buyers are far more cautious. They are still active, but they are digging deeper before signing off on a deal.
Share Sales (purchasing the company. No re-sign of agreements)
Longer due diligence. Buyers are asking more questions and taking more time to review the rent roll, financials, contracts, systems and processes.
Greater scrutiny of terms. Issues like retention periods (how long the seller stays on to help transition) are being looked at closely.
Tougher on price. Buyers are negotiating harder and are less willing to pay premiums without strong justification.
Asset Sales (re-sign of agreements)
Compliance is key. Buyers want clean, complete property files and handover documents. Any gaps can cause delays or reduce the price.
Identity checks slowing settlements. Verification of Identity (VOI) requirements can be challenging, particularly with older landlords. In some cases, this has delayed settlements.
Risk-averse mindset. Incomplete records or poorly managed rent rolls are big red flags for today’s buyers.
The bottom line: sales are still happening, but they take longer and require better preparation than ever before.
What It Means for Business Owners
Whether you’re buying, selling, or simply planning for the future, these trends have clear implications:
If you’re selling:
- Be prepared. Make sure your compliance documents, financial reports, and management systems are in order.
- The better prepared you are, the faster the sale process will be — and the stronger your sale price will be.
If you’re buying:
- There is less competition at the top end of the market, which can create opportunities.
- Having funds ready and being patient will put you in a strong negotiating position.
For the industry as a whole:
- Multipliers holding steady show the resilience of Sydney’s rent roll market.
- Consolidation is here to stay, meaning fewer offices potentially and more large networks over time.
The Sydney metro real estate business sales market is steady, but not without its challenges. Buyers are cautious, and compliance has become non-negotiable. At the same time, the appetite for quality businesses remains strong — especially among larger agencies looking to expand.
At MC Broking & Advisory, our job is to help you navigate this changing landscape. Whether you are considering selling, buying, or just want to know the value of your business, we can provide the clarity and guidance you need.
If you’d like to discuss your next move, get in touch with our team today.
Give Matt Ciallella a call on 0414 668 972 or email at matt@mcrrb.com.au.