Sydney, June 25, 2026, 09:10 (AEST)
- REA finished Wednesday at A$131.58, just off a new 52-week low of A$131.44 set earlier in the session. Shares are down 8.5% across the last seven sessions.
- Shares closed 17.3% under the A$159.06 average paid in the A$200 million buyback, and 10.5% under the lowest buyback price.
- ASX cash market was still in pre-open, with SPI futures up 9 points, or 0.1%, for the S&P/ASX 200.
REA shares barely moved at the close, up 6 cents or 0.05%. But the stock stayed pinned near the session bottom, ending only 14 cents off the day’s low. Trading hit 621,000 shares—about 61% more than the 386,540 average on Google Finance. Trailing P/E stood at 30.35.
REA’s buyback hasn’t worked out in its favor. The company shelled out A$199,999,934.31 to repurchase 1,257,405 shares at an average price of A$159.06. At Wednesday’s close, that same amount could pick up around 1.52 million shares, 21% more.
REA Group’s plan ran until December 31, starting with 132.1 million shares on issue. The company bought back 1.257 million shares, or 0.95% of the total. With profit steady, that could lift earnings per share by about 1%.
REA lagged behind the broader market on Wednesday. The S&P/ASX 200 rose 21.4 points, or 0.24%, to 8,808.4. REA was up just 0.05%.
Macquarie Group (ASX:MQG) analyst David Fabris dropped his target to A$155 from A$190, saying “the fear-of-missing-out looks to have faded.” UBS Group (NYSE:UBS) analyst Lucy Huang set her target at A$165 and thinks “listing volumes to decline over the medium term.” Wilson Asset Management’s Shaun Weick called the challenges for property-classifieds a “double whammy.” REA senior economist Angus Moore expects turnover will be “broadly unchanged” in the medium term. Wilson Asset Management
Bank of America (NYSE:BAC) is forecasting A$707 million in net profit for fiscal 2027, which is 5% under consensus. For fiscal 2028, its call is A$808 million, or 6.3% less than the market’s view. Sydney and Melbourne make up about 40% of all national listings and give REA its highest average ad yields, so lower volumes in these cities carry more impact. BofA projects buy-yield growth for residential in fiscal 2027 at 10.5%, versus the market’s 12% view.
REA’s May data pointed to a shift in mix. New buy listings dropped 1.8% on the year in Sydney and 3.2% in Melbourne. But total listings climbed 7.1% in Sydney and 1.5% in Melbourne. More properties remained online as the flow of new campaigns into the top-yielding cities slowed.
March quarter numbers were solid. Residential revenue climbed 12% and buy yield rose 14%. National buy listings ticked up 1%. “Sydney and Melbourne listing activity remained strong,” Chief Executive Cameron McIntyre said. The quarter ended March 31, before weaker numbers came in for May.
REA senior economist Anne Flaherty said in a report Thursday that commercial property has had a “subdued” start to 2026. For-sale listings on realcommercial.com.au were up 2% in the first quarter compared to a year ago. For-lease listings rose 3%. By May, searches to buy and lease were down. The report did not provide a revenue forecast.
REA’s June report puts combined-capital city house prices flat for 2026, then up 5.5% in 2027. Sydney’s market is seen down 3% this year, while Melbourne prices are tipped to fall 4%. Thursday’s first price test sits at A$131.44—a drop there would push the shares outside the 52-week range, even with the A$200 million buyback still in play.
