Opportunity knocks as steady home listings drive REA’s profit

By the Editorial Team · Friday, August 7, 2026

REA Group reported a 7% increase in revenue and a 12% rise in EBITDA for the first half of the year despite challenges such as declining home listings in key cities and a 19% drop in net profit due to impairments. The company is optimistic about future growth, projecting up to 18% earnings growth for the year and planning international expansion following a recent acquisition in the U.S. and U.K. markets.

REA Group, a leading digital property advertising company, has reported positive financial results despite ongoing challenges in the Australian residential property market. The company’s first-half performance reflects resilience amid rising interest rates, federal tax changes, and subdued auction clearance rates across key cities.

REA Group’s chief executive Cameron McIntyre, who assumed the role last November, acknowledged a decline in home listings in Sydney and Melbourne but highlighted stronger activity in other regions, including Brisbane, Perth, and Adelaide. He pointed to increased investor selling following recent modifications to negative gearing rules and capital gains tax discounts, which have added new inventory to the market.

The company’s core operations revenue rose by 7 percent to $1.79 billion, supported by an 11 percent increase in Australian market performance. Earnings before interest, tax, depreciation, and amortisation (EBITDA), excluding associates, grew by 12 percent to $1.09 billion. However, net profit fell 19 percent to $552 million, primarily due to a $111 million impairment related to REA India and a $117 million impairment reversal connected with the sale of the PropertyGuru portal in Asia.

REA’s flagship platform, realestate.com.au, recorded a record average of 12.7 million monthly visitors, aided by enhancements such as AI-driven and immersive features. McIntyre emphasized that REA’s large user base and proprietary data position the company to benefit from emerging artificial intelligence trends, which he described as a significant growth driver.

Despite a cooling market sentiment—with auction clearance rates falling below 50 percent in major capitals and estimated price declines of around 1 percent in Sydney and Melbourne—vendors have continued to list properties. National listing volumes remained broadly in line with the previous year, although combined listings in Sydney and Melbourne dropped by approximately 16 percent, offset by increases of about 13 percent in other cities. July listings were down 2 percent compared to the prior year, aligning with an eight-year average.

REA Group’s operating earnings growth guidance for the full financial year is now between 16 and 18 percent, suggesting profits exceeding $1.3 billion. The company anticipates capital expenditure of roughly $200 million and infrastructure investment near $250 million for the year, signaling confidence in longer-term growth despite near-term headwinds.

Looking ahead, REA plans to expand its international presence, targeting real estate markets in the United States and the United Kingdom. This follows a recent $40 million acquisition of local realtor search company Gotcha, which is expected to broaden the company’s offerings overseas.

REA shares closed 3.4 percent higher at $172.03, reflecting investor confidence amid a real estate sector adjusting to economic and regulatory pressures. The stock has climbed more than 40 percent over the past year, recovering from a downturn driven by initial concerns about artificial intelligence disruptions and a cooling housing market.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.