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Realestate.com.au stock continues to rise as Domain falls

Realestate.com.au stock continues to rise as Domain falls

by Eliot Hastie 0 comments

The REA group, which owns Realestate.com.au, continues to see its share price rise as its major competitor Domain falls.

The REA Group has seen its share price rise over 5.6 per cent since November last year, which represents a rise from $77 to $81.38.

However, Domain shares have fallen by 12 per cent in the same period from $3.69 to $3.22.

Domain was only launched on the ASX in November last year, with parent company Fairfax owning 60 per cent and the remaining 40 per cent divided among shareholders.

In the past month though, Domain has traded hands again to now be a subsidiary of Nine, which bought out control of Fairfax.

In the immediate aftermath of the deal, Domain shares jumped by 7.5 per cent but that was not sustained in the long run.

Reasons for a downturn can not be solely attributed to the company, as the slowing down of the property market may also have an effect as less listings are available.

The REA Group continues to see its stock rise, however, probably thanks in part to the launch of new products.

In the past six months, realestate.com.au has launched its Agent Edge suite of products, which so far has included Agent Elevate and Agent Match.

The products are designed to give agents an advantage over competitors, specifically Agent Elevate is designed to increase agent’s presence on realestate.com.au, while Agent Match helps connect agents with relevant sellers.

The products have been met with mixed reviews from agents in the marketplace, however, with comments on REB ranging wildly.

One commenter called for everyone to leave Realestate.com.au, saying, “The sooner agents leave realestate.com.au in droves the better for everyone.”

Another commenter said that Realestate.com.au was making it impossible for independents to operate.

“It will be extremely hard for the independents and the new players in the industry to survive when they are not placing as much money at the feet of Realestate.com as the majors do,” the commenter said.

On the flip side, some agents welcomed the suite of products as a way to get ahead.

“Agree with most of what REA says here. There is a distinct opportunity for outstanding agents to further build their personal brands and develop online sales funnels,” they said.

Realestate.com.au stock continues to rise as Domain falls
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