John McGrath ignites with excitement when he talks about the future of Australia’s real estate industry.
There’s palpable optimism as he discusses how property professionals are adapting to technology and finding new ways to make the real estate experience better.
The industry has changed a lot since Mr McGrath – one of Australia’s most prominent real estate gurus – started out more than 40 years ago.
“The internet, real estate portals, social media, and now artificial intelligence (AI) all continue to have a huge impact on the industry,” Mr McGrath told realestate.com.au.
Mr McGrath previously served as a board director and chairman for REA Group, publisher of realestate.com.au.
“People want efficiency and speed, so if you’re not leveraging technology to deliver what customers want in real time, then you’re going to fall behind," he said.
Given his outlook, it’s unsurprising that Mr McGrath draws inspiration from business leaders such as the late tech pioneer and Apple boss Steve Jobs.
It's been his ambition for McGrath Estate Agents – the business he founded out of a lounge room in 1988 – to innovate the real estate experience just as Apple revolutionised the way we experience technology.
John McGrath started national real estate brand, McGrath Estate Agents, out of a lounge room in 1988. Picture: Supplied
“I think what Jobs did in the early days, sticking to his vision of what computers should be despite the challenges, was incredible,” he said.
“I want to leave a legacy like that in real estate.”
Early days
Mr McGrath’s path into real estate was not a straight line.
As a young man, he dreamed of becoming a professional rugby league player, however a series of injuries, including two collapsed lungs, forced him to rethink his future.
A visit to a career advisor led him into real estate, enrolling in a part-time course at TAFE and landing his first job as a rental clerk in Sydney.
“It wasn’t my original design, but I found I really loved it once I got into it,” he said.
He got into sales and made a name for himself by the age of 24, so he decided to take the leap into entrepreneurship and open an office in Sydney.
Mr McGrath admitted he didn’t have much life or business experience, or much money, at that point, but he gave it go anyway.
The early days were tough, and it took several years to open a second office. But his determination paid off as the business began to grow, expanding to more than 150 offices today.
Turbulent times
To be sure, the business has gone through something of a rollercoaster ride since it went public on the Australian stock exchange in 2015.
Mr McGrath stepped down as CEO in 2016 but remained on as an executive director. In 2022, he was reappointed as chief executive and managing director after a challenging period for the business.
The company was taken private in 2024 after Mr McGrath and the company’s board agreed to a buyout by property giant Knight Frank and New Zealand agency Bayleys.
“We’ve never been as good as we are today,” Mr McGrath said.
Mr McGrath is optimistic about the future of real estate, as the industry adapts to new technology and ways of improving the customer experience. Picture: Supplied
The business has seen about well-known 70 agents come back to the McGrath brand since he returned as chief executive.
Among the big names who have returned to McGrath were James Ledgerwood, Michael Gleeson, Annika Bongiorno, Nick Gittoes, William Manning and Rhys Christofa.
Returning agents have cited the brand's reputation, energy, values and their own personal connections with Mr McGrath as reasons for coming back.
“We’ve had some great people come back, they like the vibe of the company returning to its roots,” he said.
“People now get a sense that someone who is passionate about real estate is running the brand.
“Once you start building that momentum back and you can see that trajectory, people want to be part of it.”
The future of real estate
Looking to the future, Mr McGrath said it’s a great time to be a real estate agent and believed that technology would continue to shape the industry.
“AI is going to help us identify the profile of the buyer, what they’re doing, and how we can reach them,” he said.
Social media, particularly platforms like Instagram, continue to make up an essential part of the marketing mix as well.
“It allows people to have suggestions and options served up to them through their social media feed,” he said.
But beyond technology, Mr McGrath noted the importance of integrity and transparency in the way people experience real estate.
“Agents have got to stop the old-fashioned habit of trying to keep information to themselves,” he said.
“Radical transparency is key, so when people sense that you’re being honest with them, they gravitate towards you.”
A different side
Outside of real estate, Mr McGrath enjoys a quieter life with his partner Kelly and their two dachshunds, Schnitzel and Pickle.
Mr McGrath describes himself as an introvert, and spends his limited free time watching movies, going for walks and cooking the occasional Sunday roast.
Despite his shyness, Mr McGrath still loves to sell.
Mr McGrath said he was focused on making McGrath the "greatest real estate company" ever. Picture: Supplied
Selling looks a little different these days compared to when he started out listing individual homes in Sydney’s east.
Today, he’s more likely to be competing for new business, motivating staff or recruiting top agents for McGrath.
“This is it for me, until the day I die,” he said.
"I love what I’m doing... and our goal is to have the greatest real estate company in the history of the world.
“We’re working every day to get a little bit closer to that outcome, but the journey is a key part of it.”
Mr McGrath was a founding director of REA Group – publisher of realestate.com.au - and served on its board from 1999 to 2018. He served as chairman from 2003 to 2007.
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