Knight Frank and Bayleys acquires third largest real estate firm in Australia
The announcement follows shareholder and regulatory approvals being met
2 min
Knight Frank and Bayleys has completed its acquisition of leading Australian real estate firm, McGrath Limited, it was announced today.
The news follows regulatory and shareholder approval, with the Scheme of Arrangement coming into effect on June 17 and implemented on June 27.
McGrath Limited is the third largest real estate group in the country, according the data from CoreLogic, behind behemoth Ray White and stalwart LJ Hooker.
McGrath founder and CEO John McGrath said in a statement that he welcomed the move.
“We are delighted to be joining forces with two of the greatest real estate brands in the world,” Mr McGrath said. “Knight Frank is the most prestigious residential agency globally and provides us and our customers with instant access to the best global network and the most sophisticated international buyers in the world.
“Our goal is to build Australia’s leading and finest real estate brand over the next few years and this new partnership and network puts us in an extraordinarily strong position to do just that.”
Between them, Knight Frank and McGrath have 171 offices across Australia and Knight Frank is the largest privately owned real estate agency in the world with more than 740 offices worldwide.
Mr McGrath will remain at McGrath Limited as chief executive and managing director and retain his 23.3 percent shareholding in the company. Mr McGrath will also be on the new board of directors, along with Knight Frank Australia CEO James Patterson, Knight Frank Global head of residential Rupert Dawes, Bayleys managing director Mike Bayley and Bayleys finance director Ken MacRae.
Mr Patterson, CEO at Knight Frank Australia, said the acquisition represented a significant milestone in the company’s international expansion.
“McGrath is a great fit culturally,” he said. “We are aligned on many areas including our values, how we operate and our brand positioning. The Knight Frank, Bayleys and McGrath teams will continue to operate on a ” business as usual” basis, but with each party gaining access to vastly broadened networks, stretching across multiple borders, unlocking greater opportunities for our clients.”
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Buyer demand, seller confidence and the First Home Guarantee Scheme are setting up a frantic spring, with activity likely to run through Christmas.
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The spring property market is shaping up as the most active in recent memory, according to property experts Two Red Shoes.
Mortgage brokers Rebecca Jarrett-Dalton and Brett Sutton point to a potent mix of pent-up buyer demand, robust seller confidence and the First Home Guarantee Scheme as catalysts for a sustained run.
“We’re seeing an unprecedented level of activity, with high auction numbers already a clear indicator of the market’s trajectory,” said Sutton. “Last week, Sydney saw its second-highest number of auctions for the year. This kind of volume, even before the new First Home Guarantee Scheme (FHGS) changes take effect, signals a powerful market run.”
Rebecca Jarrett-Dalton added a note of caution. “While inquiries are at an all-time high, the big question is whether we will have enough stock to meet this demand. The market is incredibly hot, and this could lead to a highly competitive environment for buyers, with many homes selling for hundreds of thousands above their reserve.”
“With listings not keeping pace with buyer demand, buyers are needing to compromise faster and bid harder.”
Two Red Shoes identifies several spring trends. The First Home Guarantee Scheme is expected to unlock a wave of first-time buyers by enabling eligible purchasers to enter with deposits as low as 5 per cent. The firm notes this supports entry and reduces rent leakage, but it is a demand-side fix that risks pushing prices higher around the relevant caps.
Buyer behaviour is shifting toward flexibility. With competition intense, purchasers are prioritising what they can afford over ideal suburb or land size. Two Red Shoes expects the common first-home target price to rise to between $1 and $1.2 million over the next six months.
Affordable corridors are drawing attention. The team highlights Hawkesbury, Claremont Meadows and growth areas such as Austral, with Glenbrook in the Lower Blue Mountains posting standout results. Preliminary Sydney auction clearance rates are holding above 70 per cent despite increased listings, underscoring the depth of demand.
The heat is not without friction. Reports of gazumping have risen, including instances where contract statements were withheld while agents continued to receive offers, reflecting the pressure on buyers in fast-moving campaigns.
Rates are steady, yet some banks are quietly trimming variable and fixed products. Many borrowers are maintaining higher repayments to accelerate principal reduction. “We’re also seeing a strong trend in rent-vesting, where owner-occupiers are investing in a property with the eventual goal of moving into it,” said Jarrett-Dalton.
“This is a smart strategy for safeguarding one’s future in this competitive market, where all signs point to an exceptionally busy and action-packed season.”
Two Red Shoes expects momentum to carry through the holiday period and into the new year, with competition remaining elevated while stock lags demand.
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