Online listings group expects more property sales this year amid stabilising prices
Online listings firm REA Group expects sellers to return to the market this year amid stabilising property prices, driven by low supply, rising migration and strong demand.
Listing volumes remain subdued for the moment, stifled by uncertainty about interest rates, according to a report by The Australian.
However, REA Group predicts that as the Reserve Bank reaches the end of its rate-hiking cycle, more vendors will put their properties on the market.
REA Group felt the impacts of the constrained market, but was largely shielded by agents taking up its premium product and a surge in its Indian operations, The Australian reported.
In the nine months to the end of March, REA Group's revenue rose 2% to $887 million and earnings before interest, taxes, depreciation, and amortisation fell 5% to $495 million, the publication said. Third-quarter revenue fell by 3% to $269 million, driven by Australia’s challenging macroeconomic environment, but revenue grew strongly in India.
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“While interest rate uncertainty continued to impact the Australian property market, conditions have improved with the stabilisation of house prices and more vendors returning to the market,” REA Group CEO Own Wilson told The Australian. “The movement in listings reflects the strong listings environment in the third quarter of last year prior to the commencement of the interest rate increases.”
Wilson said REA Group expected listings to increase as strong demand and increasing consumer confidence bolstered the market.
“Lack of supply and interest rate uncertainty have caused some vendors to sit on the sidelines, but we expect this to improve given strong demand, positive price sentiment and increasing consumer confidence that we are near the peak of the rate cycle,” Wilson told The Australian.
Last month, national residential new listings were down 24% year over year, the publication reported. Sydney listings were down by a quarter, and Melbourne listings were 22% lower.
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