Brisbane has the Highest Average Price of Businesses for Sale, While Sydney Sits in Last Place. 

Brisbane has the Highest Average Price of Businesses for Sale, while Sydney Sits in Last Place. 

The latest figures on Bsale show Brisbane is leading the way with the highest average price of businesses for sale on the market. At $619,949 this sunshine city is asking a higher price for their opportunities than any other city in Australia. Surprisingly, Sydney is coming up in last place with $446,671. 

In Brisbane, you can find 1,400 opportunities for sale with a combined value of $9 billion. With a range of price points and sizes, starting from a cleaning franchise at $40,000 through to an international software company valued at $20,000,000.

 

 

Why Brisbane?

According to 2021 census data Brisbane is home to 130,000 registered businesses and has a labour force of 762,000 people. With an unemployment rate of 5.4% in March quarter 2020 Brisbane is a city well equipped to operate a successful business and source employees. 

When it comes time to sell, the more successful the business is, the higher the price it can obtain. So are businesses in Brisbane better at managing their cash flow, or is something else at hand?

People are looking for opportunities in Brisbane with over 5,400 searches for ‘business for sale in Brisbane’ every month on Google, it's no surprise opportunities are being listed, because buyers are looking. 

Cafes for sale in Brisbane are the most searched type of business in this city. There are currently 238 opportunities available on Bsale (16.1% of Brisbane Opportunities). 

Where you have buyers, you ultimately need sellers. 

So what is the driving force behind Brisbane's higher prices? Is it the number of opportunities, the quality of businesses or the type of industry?

I would hedge my bets and say it's a combination. 

With higher quality businesses, comes a higher asking price. With an industry of professional business brokers who know how to market and sell businesses, to get contracts signed and the deals done - you have smoother transactions. 

The AIBB recently held their Appraisal Day in Brisbane and had over 80 business brokers and allied professionals in attendance. The importance of pricing a business correctly and obtaining a fair market price is a driving factor for this state. Business Owners want to successfully transition in and out of their businesses, quality training is core to this process.

Other Capital Cities
 

Adelaide was closely following Brisbane with $614,631 for the average price of businesses advertised for sale. With 400 businesses for sale in Adelaide and combined valued of $246 million, it is a smaller market than Brisbane, but there are some high-end businesses for sale including this freehold Vineyard advertised at $20,000,000.

Sydney is Australia’s biggest capital city. With over 2,400 businesses for sale in Sydney, it has the lowest average price of businesses for sale at $446,671. With less transportation and large freehold properties, Sydney has a lot more cafes and restaurants for sale. Whilst not lacking in high-end opportunities such as this $7.9 million petrol station. Sydney is a large city with a lot of opportunities that could impact the average price of advertised businesses. 

So what can be learnt from this Bsale data? A lot. You can see which cities are driving higher prices, where the opportunities are and what industries are the most profitable.

The price a business is advertised for sale is based on a number of factors, but ultimately it comes down to what someone is willing to pay. Cliche yes, but business sales are very different to real estate and it's important to not make those comparisons - not everyone can run a dessert manufacturing business. But the person who can - will see the value in buying an already established business! 

 

Tags: brisbane sydney qld nsw 2023

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