PHOTO: REA Group
REA Group‘s dominance in the property listings sector has attracted scrutiny from competition regulators following its acquisition of a small firm responsible for managing crucial documentation in almost every real estate transaction across Australia, excluding Victoria. The $24 billion behemoth, primarily owned by News Corp with a 61% stake and constituting over 60% of News Corp’s global market capitalization, has widened its lead over its closest competitor, Domain, in its latest financial report, boasting robust revenue growth and an expanded portfolio of property listings on its platform.
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| Company type | Public |
|---|---|
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Traded as
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| Industry | Share Exchange |
| Founded | 1995 |
| Headquarters | 511 Church Street,
Victoria
, Australia
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Key people
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Owen Wilson (CEO) Tracey Fellows (former CEO) |
| Products | Real estate advertising |
| Revenue |  A$928 million (2021) [1] |
| Website | www |
REA Group Ltd and its subsidiary companies, known as the REA Group, make up a global online real estate advertising company. REA Group is headquartered in Melbourne, Australia, with subsidiary offices in Wanchai, Hong Kong and Gurugram, India.
REA Group, founded in 1995, is a public company listed on the Australian Stock Exchange (ASX: REA) and majority-owned by News Corp Australia, a subsidiary of News Corp.
However, this ascent may face hurdles. The Australian Competition and Consumer Commission (ACCC) announced on Thursday its investigation into whether REA’s acquisition of the relatively obscure company, Dynamic Methods, could substantially impede competition. The ACCC has called for confidential submissions prior to March 1.
While REA Group downplays the significance of the acquisition, asserting that it wouldn’t materially affect its securities’ price or value, concerns have been raised by various state real estate bodies and competitors of Dynamic Methods. The ACCC Chair, Gina Cass-Gottlieb, views this acquisition as reinforcing the need for merger reform.
Dynamic Methods specializes in providing a platform for real estate agents to manage transactions, agreements, contracts, and leases nationally, servicing all state real estate institutes outside Victoria. The acquisition potentially grants REA access to an exclusive dataset, raising concerns about unfair advantage and reduced competition. REA refutes these allegations.
ACCC Commissioner Liza Carver notes REA’s dominant market position, emphasizing the risk of reduced competition and innovation if REA consolidates its control further. Despite REA’s assurance that the acquisition won’t diminish competition, industry voices, including the Real Estate Institute of Australia and Real Estate Institute of NSW, express apprehension about potential price increases and constraints on competition.
REA’s expansion through acquisitions, including Mortgage Choice, Hometrack (now PropTrack), Realtair, Managed Platforms, Simpology, and Arealytics, has propelled its market capitalization to $24.45 billion, marking a 47% growth over the past year. The investigation by the ACCC could potentially benefit Domain, majority-owned by Nine Entertainment, amid concerns over its slower growth rate compared to REA.
With the digital real estate market evolving and online classifieds becoming a crucial revenue stream for media companies, competition dynamics and regulatory oversight will continue to shape the landscape, influencing market players’ strategies and growth trajectories.
SOURCE: AFR