Australia’s underperforming real estate markets – particularly Queensland – are showing signs of a turnaround, the chief executive of Domain says.
“We will see, and we are seeing already, significantly underperforming markets, particularly Queensland in FY24, turn around and accelerate,” Domain CEO Jason Pellegrino told analysts on Friday.
“You’re seeing the same patterns that we’re seeing elsewhere – price growth substantially running ahead of the market in Queensland, and that will sort of (be) front-running listings growth.”
The number of Queensland real estate listings in 2023/24 was significantly below the state’s five-year average, Mr Pellegrino said, predicting they would move up towards that average in 2024/25.
In Sydney and Melbourne, listings volume in 2023/24 was slightly above those cities’ five-year averages and Mr Pellegrino expected that growth would continue.
“We don’t see anything materially decelerating Sydney and Melbourne, they’re tracking along well, and we’re seeing early signs of a positive spring across those markets,” he said.
Nationally, Domain expected listing growth in the low single digits in 2024/25, he said.
New “for sale” listings in July were up four per cent year on year.
Domain also reported on Friday that it had made a full-year profit of $42.4 million, up 27.9 per cent from last year but a slight miss to analyst expectations of $49.4 million in profit.
Its revenue grew 13.1 per cent to $391.1 million, with earnings before interest, tax, depreciation and amortisation (EBITDA) climbing 26.2 per cent to $137.1 million.
Domain said it would pay a fully franked four cent per share final dividend, unchanged from last year.
Domain shares jumped as much as 8 per cent in early trading, but by 11.15am had faded into the red, dropping 0.7 per cent to $3.07.