Domain predicts a rebound in the Queensland real estate market

According to Domain’s chief executive, Australia’s underperforming real estate markets are showing signs of improvement.

Domain CEO Jason Pellegrino told analysts on Friday that “significantly underperforming markets, particularly Queensland in FY24, will turn around and accelerate.”

“You’re seeing the same patterns as we see elsewhere – price growth substantially outpacing the market in Queensland, and that will lead to listings growth in front.”

Queensland real estate listings were significantly below the state’s five-year average in 2023/24, Mr Pellegrino said, predicting that they would rise in 2024/25.

Sydney and Melbourne will continue to enjoy strong growth, according to Domain. (Photos by Mick Tsikas/AAP)

The listing volume in Sydney and Melbourne in 2023/24 was slightly above their five-year averages, and Mr Pellegrino expected the growth to continue.

The Sydney and Melbourne markets aren’t materially decelerating, and early signs of a positive spring are emerging in those markets, he noted.

According to Domain, listing growth is expected to be in the low single digits in 2024/25.

The number of new “for sale” listings increased by four percent in July.

The company also reported a full-year profit of $42.4 million on Friday, up 27.9 percent from last year, but below analyst expectations of $49.4 million.

Its revenue increased 13.1% to $391.1 million, and its earnings before interest, tax, depreciation and amortization (EBITDA) rose 26.2 percent to $137.1 million.

Domain will pay a fully franked four cent per share final dividend, unchanged from last year.

In early trading, Domain shares surged as much as 8 percent, but by 11.15am they had fallen 0.7 percent to $3.07.