The REA Group Ltd (ASX: REA) share price rose more than 6% after the business revealed strong listings growth for June.
REA Group is the owner of realestate.com.au, Australia’s leading property portal. It also owns a number of other property-related businesses, including realcommercial.com.au.
What did REA Group announce?
The company didn’t make an ASX announcement. Instead, it released this news on its own website.
According to the latest Market Snapshot report from realestate.com.au, across the country the number of properties that were newly listed on realestate.com.au in June 206 was 13% higher than June 2025.
The company said that in some red-hot markets like Darwin, Perth and Brisbane where prices have performed strongly, the volume of new stock hitting the market was “even higher”.
Anne Flaherty, the senior economist at realestate.com.au, said cooling market conditions and looming property tax changes for investors were likely behind the jump. Flaherty then said:
Owners in these markets may be looking to capitalise on the significant gains seen in recent years. Changes to capital gains from 1 July 2027 could also be incentivising more sellers to head to market sooner.
Overall, conditions became more favourable for buyers in June, with relatively high levels of stock for sale and softening home prices.
Low clearance rates suggest a mismatch between buyer and seller expectations, which could point to further price falls over the coming months,
New buy listings
In terms of the listing volumes for each capital city, the year on year growth was as follows:
- Sydney: 3.4%
- Melbourne: 9%
- Brisbane: 22.4%
- Adelaide: 18.3%
- Perth: 25%
- Hobart 7.8%
- Darwin 31.9%
- Canberra: 19.5%
While the number of listings increased, house prices continued to fall in June for a third straight month. Sydney and Perth prices fell by 0.5%, while Melbourne and Canberra prices declined by 0.4%.
But, realestate.com.au also noted that aside from Melbourne, home prices remain higher than this time last year in every capital city and region.
Perth still has the strongest performance over the last 12 months, with home values up 17%.
Outlook for the REA Group share price
The company noted that chief executive of performance and value at national real estate agency Ray White Group, Thomas McGlynn, said there have been early signs of a bounce back in recent weeks, with activity returning to levels last seen at the end of May.
Sydney and Melbourne are expected to feel the brunt of the slowdown, with values expected to decline by 3% and 4% respectively through 2026.
REA Group is a business with a strong market share, great profit margins and rising earnings. After such a large fall over the past year – it’s down by 32% – it could be a good, long-term buy if it’s able to ride out the potential AI worries. Falling property prices are probably a headwind for advertising price hikes.
Strong financial performance could help reinvigorate the market because it does seem oversold at this stage. There are other ASX growth shares I’d consider buying.
