REA optimistic for listings recovery in tough property market


Mr Wilson said recent market conditions had been “unprecedented”, pointing to a 15 per cent decline in overall residential listings.

Sydney had seen a 22 per cent drop in property listings over the past three months, he said, and Melbourne saw a 21 per cent fall with the trend also extending to commercial property.

“Developer business was also impacted during the quarter, with new project commencements down 25 per cent compared to the same quarter last year,” he said.

But the former ANZ manager was optimistic about the future and praised the News Corp controlled company’s “remarkable” resilience. Over the year, the company delivered a 6 per cent rise to earnings per share and 8 per cent boost to total dividends.

Mr Wilson said confidence in the market was improving, with buyer activity increasing by 30 per cent compared to this time last year.

He said he expected the company’s performance depended on an “eventual market recovery” and predicted the stronger growth would start to show around this time next year.

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“We expect revenue growth be heavily skewed to the second half of FY20.”

Until then, the company has plans to pivot towards boosting its financial services arm. Mr Wilson told shareholders the company had received $2.2 billion worth of digital home-loan applications since launching the product in 2017.

He also said the company had made an effort to keep operating costs low, cutting this expenditure by 2 per cent, as seen in the move to make 60 staff redundant across the company in September.



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