REA reports 33 percent decline in new national listings
REA Group has updated the market that the COVID-19 pandemic has put an end to signs of recovery in the real estate market.
It reported a drop across new residential listings of 33% nationally in April, with the website business working to offset the anticipated revenue loss with cost-saving initiatives.
Weakness in new listing volumes saw April national residential listings down 33%, with Sydney down 18% and Melbourne down 27%.
Its Q4 operating experiences are expected to be 20% lower than the previous year.
REA Group has a cash balance of $135m as of 30 April 2020 but has entered into an additional $149 million loan facility.
It isn’t expected to be drawn in the short term.
The CEO Owen Wilson said he was incredibly proud of the way the business has handled the pandemic impact.
“Prior to the impact of COVID-19, the market recovery was in full flight with very strong listing in the weeks leading up to mid-March.
"In February we saw record audience numbers and strong buyer interest, reinforcing signs of the positive market momentum.
“Our priority has been to help our customers and consumers adapt to the new market conditions by providing the right support measures and new product features.”
REA's share price jumped over seven percent in morning trading.