An innovative estate agency, launched at the weekend with more than R150m worth of stock on the KwaZulu-Natal north coast, says it will tackle the national market within a year.

Typically South African estate agencies are franchised, meaning the principal must be responsible for every aspect of acquiring and selling housing stock.

Entrepreneur Nash Cohen has based his new business model on his former employer, London estate agency Foxtons, to bring Hunters to the market. Agents become Hunters employees, securing a basic monthly salary, company car, medical aid and benefits.

The company came to the market at the weekend with stock from the fast-developing business and residential hub on Umhlanga Ridge, but Cohen said Hunters would be expanding to Johannesburg and Cape Town within the next year.

"There was an obvious opportunity in the market to present an improved professional operation, while providing this service at a far more competitive commission rate," Cohen said.

The model allows Hunters to charge 4% commission on its deals with agents securing 10% of that commission, effectively 0,4% of the sale price.

"The demand and competition in London dictates a symbiotic relationship rather than separate branches. Foxtons has 17 offices of the 4,000 estate agencies operating in London, yet controls 30% of the market," he said.

Cohen said the setup of Hunters would allow agents to conclude about 10 monthly sales against two or three afforded by the traditional model. Clients benefit from a model that reduces house-hunting and selling time and have access to a website offering a virtual tour, location maps and floor plans for available properties.

Hunters will launch a coffee table-style magazine showcasing the properties on offer.

Initially the magazine will be published quarterly and increase to monthly on demand.

Business Day