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Highlights

  • Bell Potter reaffirms 2-BUY rating with a price target of AUD 267, implying 12.96% upside.

  • Year-to-date revenue rises 18% to AUD 1.247 billion; EBITDA up 19%.

  • Company confirms ACCC inquiry into subscription offerings but maintains strategic focus.

REA Group Ltd (ASX:REA), a leading player in online real estate advertising, continues to receive signifant backing from the investment community. Bell Potter Securities has reaffirmed its BUY rating on the company, setting a target price of AUD 267, which represents a 12.96% premium over the current share price of AUD 235.34.

The recommendation, made by analyst Michael Ardrey was last reviewed on 19 June 2025. The outlook is further boosted by REA’s long-term growth forecast of 28.88%.

Nine-Month Financial Performance

For the nine months ended 31 March 2025, REA Group reported impressive financial results:

  • Revenue reached AUD 1.247 billion, up 18% year-on-year.

  • EBITDA (excluding associates) climbed 19% to AUD 734 million.

  • In Q3 alone, revenue grew 12% to AUD 374 million, and EBITDA rose 12% to AUD 199 million.

This growth was driven by double-digit revenue increases across REA’s Residential, Commercial, Financial Services, and India business segments. 

ACCC Issues s155 Notice: REA Fully Cooperating

In a regulatory update, REA confirmed it has received a section 155 notice from the Australian Competition and Consumer Commission (ACCC). The notice requires the company to provide information regarding certain subscription offerings.

REA stated it is fully cooperating with the investigation and emphasized its commitment to customer value and transparency:

“REA is committed to providing choice, value and flexibility to its customers and consumers, and remains focused on delivering products and services that improve the property experience.”

The company also highlighted the performance of its digital platform, noting an average of 12.3 million monthly visitors in the March quarter, with 6.4 million users exclusively using realestate.com.au.

Market Outlook

REA remains optimistic about the property market outlook. Key projections for the remainder of FY25 include:

  • 1–2% growth in total national residential listings.

  • Residential Buy yield growth in the range of 13–15%, depending on geographic mix in Q4.

  • Maintenance of positive operating jaws and controlled operating cost growth.

Although April listings were down 11% year-on-year, largely due to the timing of Easter and federal elections, buyer sentiment has improved post the February rate cut. CEO commentary suggests a return to modest property price growth as buyer demand improves.

Outlook for India and Associates

Operating cost growth is expected to remain in the low double-digit range, with a reduction in marketing costs and lower anticipated cost of goods sold (COGS) in India. EBITDA losses in India are expected to be marginally lower in FY25 compared to FY24, and contributions from associate losses are anticipated to be modestly higher.