REA Group upbeat on property market

THE fundamentals of the residential property market remain positive, says online property classified company REA Group after turning in healthy quarterly results.

While further interest rate rises are expected, the company cited strong bank liquidity, record low unemployment and increased immigration as underpinning the property market.

REA said national listings were likely to be down yearon-year in this quarter, reflecting strong listings last year and potential impacts from the federal election. But the impact was not expected to be permanent. REA chief executive Owen Wilson said the March quarter had been driven by a healthy property market, with listings up by 11 per cent.

REA’s core operations generated revenue of $869m for the nine months to March 31, representing year-on-year growth of 32 per cent. Earnings before interest, taxes, depreciation and amortisation including associates for the nine months was $523m, up 27 per cent. REA is majorityowned by News Corp, publisher of this masthead.