A steep 16% drop in new listings across Sydney and Melbourne in July has collided with a 13% surge in homes for sale in Brisbane, Perth and Adelaide, according to REA Group. The realestate.com.au owner says many regional capital city vendors are trying to lock in prices at what they see as a market peak, even as auction volumes in the major capitals slide about 20%. Investors responded quickly to the shifting dynamics and full-year numbers, pushing REA Group’s share price more than 2% higher on Thursday.
REA Group posted revenue of $1.8 billion for the year, a 7% increase that flowed from a busy finish to the financial year as sellers rushed to list. Net profit came in at $552 million, down 19% after a $111 million write-down tied to the sale of its India business last month. Stripping out that divested operation, underlying profit rose 15% to $650 million. The company says the sharp change in listing patterns has only emerged in the opening weeks of the new financial year.
Behind the headline moves sits a clear geographic split in housing supply. Sydney and Melbourne owners are retreating from the market, cutting fresh stock by double digits, while smaller capitals open the floodgates. REA Group’s data lines up with other indicators showing reduced auction schedules in the biggest cities, pointing to fewer high-profile weekend sales campaigns. More owners in Brisbane, Perth and Adelaide are accepting current price levels and moving quickly, boosting overall national listing numbers despite the pullback in the two largest markets.
