REA Group chief executive Owen Wilson says the surging price of Australian property was unsustainable.
“Banks have used a 5 per cent serviceability rate for every mortgage for the last two years in anticipation of this as well. People will still buy, yes, [but] there are absolutely fewer, there’s no doubt about that. But that probably needed to happen.
REA chief executive Owen Wilson believes agents will list more in a softer market compared with last year.Net profit was up 28 per cent to $408 million, and earnings before interest, tax, depreciation and amortisation rose 20 per cent to $674 million, both excluding acquisitions. The results sent the shares up 5.9 per cent near the close to $131.32.
Mr Wilson said the easing in the property market was beneficial to REA, because agents who were easily selling homes last year without advertising are now returning with more listings on the platform.