Investors sold down REA Group Limited (ASX:REA) and other listed real estate platforms after Google began displaying real estate listings, raising concerns the move could chip away at incumbents’ market share.
REA, majority owned by News Corp, fell 2.8% on Tuesday. The decline was smaller than US peer Zillow, which dropped 8.5% overnight, and Domain owner CoStar, down 6.6%.
Citi analysts said Google’s expansion into property listings was unlikely to materially affect REA, noting about 80% of traffic to realestate.com.au is direct. That, they said, should reduce REA’s exposure to shifts in Google search behaviour.
Citi reiterated its neutral rating on REA and kept its 12-month target price at $279.25, arguing the stock warrants a premium to global peers given its dominant market position.