Have you been house hunting lately? Turns out, many have, and it’s not a fun experience. Rising interest rates and lowered supply have intensified competition, wherein people don’t want to take their chances online with digital real estate auctions. They prefer the traditional way.
That’s why digital real estate auctioning platform Openn (ASX: OPN) has had to change tact (and countries). Taking a breather from the intense Australian market, it has teamed up with the Canadian Real Estate Association (CREA) to launch the integration of the Openn platform with REALTOR.ca to the general market.
Consequently, the full commercial rollout of the Openn platform in Canada commenced Monday, March 20, 2023, Canadian time. Right now, Openn’s pricing model has not been finalised, but it is expected that the price for the full premium Openn subscription will be around $54 per agent per month.
Vice President, REALTOR.ca, Patrick Pichette, said, “Together, REALTOR.ca and the Openn Offers platform can help solve the perceived lack of transparency in the sales process that many consumers, governments, and REALTORS have been vocal about, and we want to do this in a way that will continue to keep our REALTOR members at the heart of the transaction.”
In Canada, over 160,000 buyers and listing agents are REALTORS, and about 600k properties are sold annually so the revenue impact of subscription fees, partner integrations and data analytics is expected to be material.
Initially, the platform will be free, but from July 2023, agents will pay for the use of the Openn platform through subscription fees. Prices will vary depending on the product tier selected. In addition to agent or broker subscription fees, Openn intends to generate revenue through partner integrations and data analytics.
At this stage, an accurate estimate of the revenue is not yet determinable because it is subject to multiple factors including, but not limited to the percentage of REALTOR members who will actually subscribe to the platform.
Openn’s property technology software delivers transparency to Canadian consumers buying and selling property. The platform is designed to reduce days on market and streamline the offer and acceptance process through tools beneficial to agents.
Openn North America President, Duncan Anderson, shared, “It’s enormously satisfying to announce this commercial rollout in partnership with the Canadian Real Estate Association. This transformational achievement is the culmination of a rigorous testing process and extensive integration which provides us with great confidence that we can roll the Openn products out en-masse to a very large North American market.
During the pandemic, people at home enjoyed making bids and auctioning off properties online. But with ongoing inflation, that is not the most reliable option, driving people away from platforms like Openn. In H1 FY23, its income fell by nearly 50% on H1 FY22 to $337k, as its losses shot up by over 73% to $5.6 million. Openn’s share price also fell by over 70% on H2 FY22, from $1.08 to $0.28
According to Anderson, this partnership denotes that the Company’s “heavy lifting” and “expensive build stage” is over. He concluded, “The team transitions to an operational setting with lower costs and a clear pathway to revenue”.
Alinda is a Business Reporter for The Sentiment
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