Domain group hit by sharp decline in new sale listings

The Nine-owned Domain Holdings Group was hit by a sharp fall-off in new sale listings in April due to the coronavirus impact.

Analyst SQM Research said national residential property listings decreased in April by 4.9 per cent to 292,775

The Nine-owned Domain Holdings Group was hit by a sharp fall-off in new sale listings in April as the property market was slugged by the coronavirus, amid warnings from analysts a market recovery could be slow.

The company said listings declined over the course of the month, with an improvement last week reflecting a post-Easter bounce, albeit a far cry from the rising market of March.

Analyst SQM Research said national residential property listings decreased in April by 4.9 per cent to 292,775 as the virus sapped vendor confidence.

Listings were down by 11.9 per cent on 12 months ago, with Perth suffering the largest decrease of 8.4 per cent, followed by Sydney at 7.2 per cent. SQM managing director Louis Christopher said the fall in new listings recorded in April impacted every capital city and there was a surge in older listings, as sellers struggled to sell their properties and new sellers held off.

“With the lifting of some restrictions over the course of May, we could see a lift in buyer activity for housing; however, many issues persist, such as the spike in unemployment and the ongoing closure of the international border,” he said.

Domain, led by Jason Pellegrino, said digital revenue jumped by 3 per cent for the first quarter, and 15 per cent for the month of March, with total revenue up by 1 per cent for the quarter, and 10 per cent for March.

In April, new residential listings volumes declined in the “high 20 per cent range” reflecting COVID-19 impacts but residential depth yield continued to grow year-on-year, but at a lower rate than in March.

In a sign that Domain will reap benefits from its pay deal with staff, the company said operating costs in this half were expected to be about 7 per cent lower than the same time last year. This does not include any potential benefits from the federal government’s JobKeeper support package. Domain is still in talks with the government about how it qualifies and the timing of any payments.

Domain said that March’s performance prior to the impact of COVID-19 restrictions gave it confidence that it was well positioned when markets return to normal.

Domain shares closed up 17c on Tuesday at $2.72.