Purplebricks to launch in New York

Hybrid estate agent Purplebricks (LON: PURP) has announced today its plans to expand its U.S operations into New York later in the year.

The increasingly popular estate agents opened its first stateside post in L.A in September 2017 and will begin operating in the New York Designated Market Area, or NY DMA, sometime in "the second quarter of the calendar year 2018."

The NY DMA, often referred to as the Tri-State area, includes the likes of New York City, five of the largest cities in New Jersey including Newark, six cities in Connecticut, and five counties in Pennsylvania. It has a population of over 20 million people.

Management's reasoning for choosing the area was obvious:

"The region is particularly suited to the Purplebricks' proposition, with real estate commissions reaching as high as 7% and an average property sales price of around $561,000. Transaction volumes for homes priced around this level are double the national median. The high population density of the area should also allow for accelerated brand awareness when compared to other regions."

The decision to move into the lucrative U.S market last year came after the Group's highly successful move into the Australian market in 2016. 

Since launching in L.A it has since expanded throughout California into San Diego, Fresno and Sacramento.

Commenting on the launch Group CEO Michael Bruce said:

"It is a sign of confidence in the potential of the US business that we are today announcing our expansion to cover both the East and West coast, with our planned entry into the New York market. With higher than average rates of commission and transaction volumes, New York was the natural first move on the East Coast for Purplebricks."

PURP announced earlier this month Michael Bruce is leaving the Group while former Group COO Lee Wainwright will take the reigns as Chief Executive.

Shares in the Group were up 3% off the back of the announcement on Wednesday morning.