REA Group Ltd

REA: XASX (AUS)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
A$436.00DzqqqCzlwdkkf

REA Group's Strength in Australia Is Not Repeated in India

Business Strategy and Outlook

We expect REA Group’s near-term challenges to center around navigating significant volatility in the Australian housing market. After the onset of the COVID-19 pandemic, REA Group received a substantial boost to revenue and profit margins from the booming housing market. We estimate that residential transactions were around a third above trend levels during fiscal 2021 and 2022. With the normalization of interest rates, we expect an eventual return to trend, which has started in fiscal 2023.

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