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February 19, 2019Domain 1HFY19 update: pricing power and depth penetration save th [...]
Flash Report, ReportsOn 15th February 2019, Domain reported its 1HFY19 earnings. Pricing power, depth penetration and adjacent businesses drove revenue growth in an otherwise tough housing market while weakness in print meant overall revenue growth was flat YoY.Sector Media. -
December 5, 2018Classifieds Marketing Outlook: All Segments
Focus Report, ReportsFor decades, classifieds were the domain of newspapers, which offered advertisers cheap ads sorted under specific categories. The ads gave shoppers an easy way to browse various local offers, usually from private sellers. But, the jump from print to digital was inevitable and has proven itself to be quite lucrative for digital players. However, in the past few years, as the online classifieds market matures, leading digital classifieds players are attempting to diversify their revenues into new products and services. This is being driven by the need to ensure new sources of revenue growth and to drive customer acquisition and loyalty. In the real estate market, REA and Domain have introduced adjacent services such as mortgage broking and data analytics. In the recruitment market, LinkedIn and SEEK have been investing in technology companies involved in temporary hire, skill development, alternative recruitment and employee engagement. -
October 17, 2018Property Advertising Market Outlook
Market Outlook, ReportsEven as the RBA chooses to keep interest rates stable, the Federal Government has implemented measures to cool the rising property market. This has resulted in a decline in new listings and housing sales in major cities and a decline in real estate purchases by foreign buyers. Macroeconomic indicators, such as GDP growth, household income and consumption continue to strengthen, with labour participation increasing and the unemployment rate falling to 5.4% in June as 41,200 full time jobs were created. The RBA continues to maintain the cash rate at the same level due to a below-target inflation rate and high consumer debt that makes many households’ consumption rates sensitive to the mortgage rate. Household debt recently reached 190.0% of total annualised household income. The online real estate classified market is dominated by two players, the REA Group and Domain, which together hold 98.0% of the market. Both players reported strong annual results, with about 20% revenue growth for FY18. Despite the dominance of the two players, new start-ups continue to enter the market in the hopes of grabbing a slice of the lucrative property classifieds market. However, to date, none have gained any material traction in the Australian market. -
September 20, 2017Property Advertising Market Outlook
Market Outlook, ReportsTechnology as a disrupting and differentiating factor -
June 29, 2016
Property Marketing Outlook
ReportsAustralia’s property market remains robust both in terms of house prices and building approvals. This will support ongoing growth in all overall classified and display expenditure by home sellers and real estate agents. Median house prices in metro areas (notably Sydney $780,000 and Melbourne $585,000) are on all time highs having achieved double digit growth rates in the past 12 months. Foreign investors and low relative interest rates has fueled these trends. Likewise the the loans market is very large and continues to grow, though there has a been a shift in recent times towards higher density housing (now around 49%) relative to detached homes.
