Google will dump a feature on its Maps portal that allows users to search for real estate listings due to low take-up rates, back-end infrastructure challenges and the vast array of competition in the online real estate sector, the company has announced today.
In a statement this morning, Google said that due in part to the “proliferation of excellent property search tools on real estate websites”, it will discontinue the real estate feature within Google Maps on February 10 this year.
“We recognise that there might be better, more effective ways to help people find local real estate information than the current feature makes possible,” the statement reads. “We’ll continue to explore this area, but in the meantime, Google offers other options to home-seekers.”
Former REA chief executive Simon Baker says the sheer amount of competition in the online real estate market makes it extremely difficult for any new player to gain traction – something he pointed out when Google first announced its plans.
“The issue is that it’s hard, but not necessarily impossible, but the thing is you need to have a coordinated and thought-out approach. I think they had something partially thought out, but there were elements they didn’t understand.”
“For instance, you had to go to the maps to find the listings, rather than search yourself. That’s just one issue,” he says.
Baker also points out that given Google’s experimental nature with different programs and apps, some of the elements in the real estate search weren’t as advanced as they are on other property websites.
“There’s an issue around quality of listings. Is it an old listing? How long has it been up there for? They need to have a dedicated team available to it… because while they are able to source listings quite easily, there’s an issue around quality.”
“They probably didn’t use those other elements that are on the other sites.”
Meanwhile, Google Australia has announced that it will be increasing its engineer headcount by 50% this year along with adding new employees in all areas of the business.
The announcement comes after Google said it wants to add thousands of new employees this year, with a special focus on the Asia-Pacific region.
A spokesperson confirmed with SmartCompany this morning the Sydney office will be looking for over 100 new engineers this year, although new jobs will be added in other areas as well.
In a statement, senior vice president of engineering and research, Alan Eustace, said the company is eyeing 2011 for its biggest year in hiring yet – beating the 2010 record of 4,500 new workers.
“There’s something at Google for everyone – from geo, to enterprise, to video – with most of the work done in small teams, effectively working as start-ups,” he said.
The focus in Southeast Asia was alluded to by the company’s president of Japan and Asia-Pacific operations, Daniel Alegre, who told Dow Jones in an interview yesterday that “we’re seeing a tremendous amount of growth in Southeast Asia”.
That report also claimed that Google wants to hire more than 500 people in Asia this year.
Telsyte research director Foad Fadaghi says the Asia-Pacific region, including Australia, is a key region for Google as it expands into new areas such as mobile.
“This area has been a major focus for Google in the past five years, and now that’s increasingly being the case. One of the factors involved in that is the growth in the mobile space, in Android, because all the manufacturing here. All the vendors are here. It makes sense.”
Fadaghi points out that Google’s market share in some Asian countries, such as China, is quite low, giving the internet giant room to move – especially as it diversifies into software, apps and other areas.
“Search advertising has been strong in these markets, but it still has a lot of room to grow in areas such as Singapore, Thailand and so on.”
Google has also announced former News Limited executive Nick Leeder will become its new chief executive in Australia. Leeder is to lead the sales and business development operations in Australia and New Zealand.
“I’m excited to have the opportunity to take on this new role. Google is a company that’s not afraid to take risks and experiment with new ways to help users, advertisers, and partners,” he said in a statement.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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