The Domain Holdings Australia Ltd (ASX: DHG) share price was trading as much as 4.87% higher today. Over the past month, shares of Domain Holdings Australia Ltd have pushed 10% higher. For comparison, the S&P/ASX 200 (INDEXASX: XJO) has risen 2% in the same time.
About Domain Holdings Australia
Domain is the business behind one of Australia’s largest property portals, Domain.com.au, which allows property sellers to try to advertise to as many potential buyers as possible. Some of the other real estate websites it operates include Allhomes.com.au and Commercialrealestate.com.au.
What’s Happened?
Domain shares set a new 52-week high price today when shares were trading more than 5% higher this morning. The company has released no new announcements today, but data released by CoreLogic this morning shows that Australian property is rebounding. Higher interest rates help too!
Higher property prices and higher demand are both good news for Domain, as it could lead to more listings and higher revenue.
Domain shares listed on the ASX in November 2017, right at the peak of the property boom. Since then, shares have never reached the listing price of $3.69. With property prices on the way back up, it may not be long before Domain shares are setting new record highs.
Buy, Hold or Sell?
Domain shares stand to benefit from rising property prices, and the recent data certainly supports a bullish stance on property. However, I would be hesitant about buying Domain shares because they are not the market leader. REA Group Ltd (ASX: REA) has a much higher market share and a greater competitive advantage.
If property prices do continue to rise, I would be considering REA before Domain.
For two high-growth shares, have a look at the free report below.
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Disclosure: At the time of publishing, Max does not have a financial interest in any of the companies mentioned.
