Should I buy Rea Group stock in 2025?
Is it the right time to buy Rea Group?
REA Group Limited (ASX: REA), currently trading near $231.83 with an average daily trading volume of around 174,450 shares, continues to demonstrate resilience in a dynamic property market. Despite a slight pullback of 3.43% intraday and recent softness in listing volumes, REA's fundamentals remain steadfast. The company’s decision to step back from its bid for UK giant Rightmove allows it to sharpen focus on the lucrative Australian and high-growth Indian markets. Quarterly results showed revenue growth of 12% year-on-year, confirming robust yield expansion and strong cash flows. Notable, too, is the acceleration in residential yield, rising at 15% in the latest quarter, underscoring the platform’s pricing power against a backdrop of softer overall listings. Market sentiment remains quietly constructive, with Australian analysts moderately optimistic and a consensus target price of $301.38 set by more than 10 national and international banks. In the digital real estate advertising sector—marked by ongoing innovation and a strong digital shift—REA’s dominant platform, realestate.com.au, cements its leadership. Positive momentum from new product launches and international expansion lays fertile ground for investors in search of long-term growth opportunities.
- ✅Australian residential yield growth accelerating to 15% in the latest quarter.
- ✅Strong revenue and EBITDA growth sustained despite listing volume declines.
- ✅Undisputed market leadership via realestate.com.au with national brand recognition.
- ✅Expansion into India driving 31% revenue growth in that segment.
- ✅Launch of new ad tech products such as AMAX to propel future yield.
- ❌Listing volumes remain volatile, recently declining in key metros like Sydney and Melbourne.
- ❌Rising competition potential from well-funded international entrants such as CoStar.
- ✅Australian residential yield growth accelerating to 15% in the latest quarter.
- ✅Strong revenue and EBITDA growth sustained despite listing volume declines.
- ✅Undisputed market leadership via realestate.com.au with national brand recognition.
- ✅Expansion into India driving 31% revenue growth in that segment.
- ✅Launch of new ad tech products such as AMAX to propel future yield.
Is it the right time to buy Rea Group?
- ✅Australian residential yield growth accelerating to 15% in the latest quarter.
- ✅Strong revenue and EBITDA growth sustained despite listing volume declines.
- ✅Undisputed market leadership via realestate.com.au with national brand recognition.
- ✅Expansion into India driving 31% revenue growth in that segment.
- ✅Launch of new ad tech products such as AMAX to propel future yield.
- ❌Listing volumes remain volatile, recently declining in key metros like Sydney and Melbourne.
- ❌Rising competition potential from well-funded international entrants such as CoStar.
- ✅Australian residential yield growth accelerating to 15% in the latest quarter.
- ✅Strong revenue and EBITDA growth sustained despite listing volume declines.
- ✅Undisputed market leadership via realestate.com.au with national brand recognition.
- ✅Expansion into India driving 31% revenue growth in that segment.
- ✅Launch of new ad tech products such as AMAX to propel future yield.
- What is Rea Group?
- The price of Rea Group stock
- Our full analysis of Rea Group stock
- How to buy Rea Group stock in Australia
- 7 tips for buying Rea Group stock
- The latest news about Rea Group
- FAQ
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the Rea Group share price for over three years. Every month, hundreds of thousands of users in Australia trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Rea Group.
What is Rea Group?
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | Australia | Rea Group is headquartered in Australia, serving as a leader in digital property services. |
💼 Market | ASX (Australian Securities Exchange) | Local listing ensures transparency and strong access for Australian investors. |
🏛️ ISIN code | AU000000REA9 | This unique code simplifies stock identification and possible cross-market trading. |
👤 CEO | Owen Wilson | Experienced leadership since 2019, guiding strategic growth and innovation initiatives. |
🏢 Market cap | 30.63 billion AUD | High market cap reflects dominant market share and stable revenue base. |
📈 Revenue | 1.25 billion AUD (FY25, projected) | Consistent double-digit growth driven by strong advertising demand and digital adoption. |
💹 EBITDA | 473 million AUD (FY25, projected) | Robust EBITDA margin highlights effective cost management and operational leverage. |
📊 P/E Ratio (Price/Earnings) | 49.7 | Elevated P/E suggests optimism for future earnings growth but also a premium valuation. |
The price of Rea Group stock
The price of Rea Group stock is falling this week. As of now, Rea Group shares trade at 231.83 AUD, marking a daily loss of 3.43% and a 0.71% drop over the past week. The company’s market capitalisation stands at 30.63 billion AUD, with an average three-month daily trading volume of 174,450 shares. The stock’s P/E Ratio is 49.7, the dividend yield is 0.91%, and beta is currently at 1.34. This level of beta indicates moderate share volatility, so investors should be mindful of short-term price swings.
Our full analysis of Rea Group stock
After reviewing Rea Group's latest financial results and tracking the share’s evolution over the last three years, we have leveraged a combination of proprietary models, financial indicators, technical signals, and comparative market data to synthesize our perspective. Drawing on both quantitative factors and competitive positioning, we are able to deliver a clear, multidimensional view of this technology leader. So, why might Rea Group stock once again become a strategic entry point into the digital advertising and property technology sector in 2025?
Recent performance and market context
Rea Group’s share price demonstrates notable resilience, closing at 231.83 AUD on 3 July 2025, near the lower range of its 52-week performance, yet still up over 21% year-on-year—a testament to sustained investor confidence even amid short-term volatility. This strength is further highlighted by the company’s market capitalisation of more than $30 billion, cementing its position as a powerhouse on the ASX. Recent developments have supported this trajectory: the acceleration in residential yield growth (+15% Q3 vs +13% in Q2), successful focus on core markets after stepping back from the Rightmove acquisition, and expanding influence in India all point to a solid fundamental base. The Australian digital property sector remains robust, buoyed by high internet penetration, demographic trends favouring online real estate, and the continued preference for quality digital platforms by both advertisers and consumers.
Technical analysis
Short-term technical signals for Rea Group have recently shown mixed but improving momentum, offering a constructive setup for potential investors. The 14-day RSI stands at 52.8—indicative of a balanced market and neither overbought nor oversold conditions. The current MACD (-1.24) flagged a recent sell signal, but the proximity to key support at 231.19 AUD and the convergence of the price with the 20- and 200-day moving averages (236.62 AUD and 236.35 AUD respectively) reinforce the view that downside risk is contained. Moreover, with the stock price currently below the 50- and 100-day moving averages but above the crucial 200-day, the setup points towards potential bullish reversals, especially if market sentiment improves. These technical factors suggest that Rea Group may be entering a new period of accumulation, typically preceding positive price action.
Fundamental analysis
From a fundamental perspective, Rea Group continues to deliver exemplary top-line and bottom-line growth. For the third quarter FY25, revenue grew by 12% year-on-year, with a quarterly turnover of 374 million AUD, and EBITDA reached 199 million AUD—an impressive margin and a clear demonstration of the company’s scalable digital model. The nine-month cumulative revenue of 1,247 million AUD (+18% year-on-year) and a near-19% lift in cumulative EBITDA highlight underlying robustness despite advertising volume fluctuations. The stock’s current P/E ratio of 49.7, while reflective of premium tech valuations, is justified by a mix of strong market leadership, high free cash flow, and significant growth avenues. Notably, Rea Group’s ability to increase average revenues per listing while maintaining brand dominance (with realestate.com.au as an undisputed market leader) represents a substantial competitive advantage. Strategic expansion in India and innovative technology solutions such as the AMAX advertising platform further amplify Rea’s market opportunity. The company’s annualised yield growth targets (13–15% for FY25) provide clear visibility and support for ongoing upward rerating.
Volume and liquidity
With an average 3-month daily trading volume of roughly 174,450 shares and a free float of over 47 million shares, Rea Group’s liquidity ensures ease of entry and exit for both institutional and retail investors. Consistent, high trading volumes signal robust investor engagement and sustained interest, contributing to relative price stability and dynamic price discovery. Such liquidity, paired with a focused capital structure, reflects a tightly held yet institutionally attractive stock—conditions often associated with dynamic valuation adjustments and favourable responses to earnings surprises or corporate developments.
Catalysts and positive outlook
Rea Group’s outlook is underpinned by a variety of bullish catalysts that position it attractively into FY26. Most notable is the rollout of AMAX, which is set to add an estimated 3–4 percentage points to revenue yield growth, reflecting the company’s persistent innovation and capacity to monetise digital real estate traffic more effectively than competitors. Rea Group’s exit from the Rightmove pursuit allows management to double down on the high-growth Australian and Asian markets, leveraging its technology edge and market share in core geographies. India’s operations have exhibited 31% revenue growth in Q3, tapping into a large and increasingly digitised property market. ESG positioning, particularly through new sustainability-focused digital offerings, adds another layer of appeal for contemporary investors. The strategic use of data analytics and targeted advertising further supports higher margins and recurring revenues. Relative to their global competition, Rea’s high-quality technology stack and proven network effect ensure that the business is well-placed to harness both cyclical upswings and secular shifts to online property solutions.
Investment strategies
For short-term traders, the current technical support levels around 231 AUD and the recent market consolidation phase offer a potential entry window, especially ahead of upcoming quarterly results and the anticipated positive effect of the AMAX product roll-out. Medium-term investors can take advantage of the expanding EBITDA margin, consistent dividend payments (annual yield of 0.91% with full franking for Australian residents), and strong price momentum demonstrated over the past year. Long-term buyers are likely to appreciate the combination of continued revenue growth, expanding addressable markets (notably in India and via product innovation), and the company’s proven ability to deliver resilience across property and advertising cycles. Rea Group’s capital structure, significant insider ownership, and history of prudent capital allocation all further support a constructive view for investors seeking stable, growth-oriented exposure in the digital economy.
Is it the right time to buy Rea Group?
Rea Group offers a compelling combination of market leadership, consistent revenue and margin expansion, and multiple structural growth engines. Supported by a healthy balance sheet, robust cash flows, and innovative product introductions, the company’s fundamentals justify renewed interest at current levels. Technically, Rea shares are consolidating at a critical support zone with signals pointing toward a potential bullish shift. With strong demand for digital property solutions in Australia and Asia, new product catalysts on the horizon, and clear visibility on both income and capital growth, the stock seems to represent an excellent opportunity for investors to position themselves for the next leg of sector growth. For those seeking innovative, blue-chip technology exposure with both defensive and offensive attributes, Rea Group warrants serious consideration as we look toward a promising 2025 and beyond.
How to buy Rea Group stock in Australia
Buying Rea Group stock online is simple and secure, especially when you use a regulated broker in Australia. Investors can easily purchase Rea Group shares for direct ownership, or they may choose to trade using contracts for difference (CFDs) that offer the flexibility of leverage and short-term speculation. Each approach has its own advantages, and understanding the difference is key to finding your best fit. You’ll find a detailed comparison of the main brokers further down the page to help you get started.
Spot buying
A cash, or spot, purchase of Rea Group stock means you become a direct shareholder and hold the shares in your own name, benefiting from any potential dividends and capital gains. Typical brokerage fees in Australia are usually a fixed commission per order, like $5 to $10 per trade, in Australian dollars.
Example of a share investment gain scenario
If the Rea Group share price is $231.83 AUD, you can buy around 4 shares with a $1,000 AUD stake, including a brokerage fee of around $5.
✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100. Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading lets you speculate on Rea Group’s price movements without owning the shares, using leverage to potentially magnify gains (or losses). Fees typically include the spread (the difference between buy and sell price) and overnight financing costs if you hold positions open for more than a day.
Gain scenario
You open a CFD position on Rea Group shares, with 5x leverage. This gives you a market exposure of $5,000 on a $1,000 AUD deposit.
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before investing, it’s crucial to compare brokers’ fees, platform features, and customer service. The most suitable method will depend on your financial objectives, risk profile, and investment horizon. Check out the broker comparison further down the page to choose the solution that fits your needs.
Check out the best brokers in Australia!Compare brokers7 tips for buying Rea Group stock
📊 Step | 📝 Specific tip for Rea Group |
---|---|
Analyze the market | Review trends in the Australian property and advertising sector that impact Rea Group’s demand and growth. |
Choose the right trading platform | Select a trusted ASX-listed broker with competitive fees and good research tools for Australian equities. |
Define your investment budget | Decide how much to invest in Rea Group and ensure you diversify across several industries. |
Choose a strategy (short or long term) | Consider a long-term approach to benefit from Rea Group’s leading digital platform and regular dividend payments. |
Monitor news and financial results | Follow quarterly updates and product launches like AMAX, which influence the company’s performance outlook. |
Use risk management tools | Set stop-loss orders and think about using limit orders to protect your investment in volatile periods. |
Sell at the right time | Plan to sell when Rea Group reaches key price targets or ahead of potentially negative sector developments. |
The latest news about Rea Group
Rea Group reports Q3 revenue growth of 12% and EBITDA up 12% year-on-year. In the latest quarterly update, Rea Group achieved revenue of $374 million AUD, demonstrating resilient business fundamentals despite a challenging listings environment. EBITDA reached $199 million AUD, while free cash flow improved by 19% year-on-year, reflecting strong cost management and continued digital monetisation. Analyst commentary noted that Q3 performance was fully in line with expectations, helping anchor positive sentiment among the financial community.
Residential yield acceleration continues with 15% growth in Q3, outperforming previous quarters. Management highlighted a significant acceleration in residential yield growth, recording a 15% year-on-year increase compared to 13% in Q2. This yield momentum underscores the company’s robust pricing power and successful strategy to offset volume volatility through higher monetisation per listing, especially relevant in Australia’s evolving property market.
REA Group abandons Rightmove pursuit, refocusing strategic priorities on domestic and Asian markets. During the past week, Rea Group officially announced its decision to withdraw from its proposed acquisition of UK-based Rightmove. This move, following several rejected offers, allows the company to conserve capital and reallocate resources to its Australian and Asian growth platforms, which is expected to foster deeper local market leadership and regional expansion.
AMAX advertising product is forecast to add 3-4 percentage points to yield growth from FY26. The latest management guidance introduced “AMAX”, a new digital advertising product, projected to contribute an additional 3–4 percentage points to overall yield growth from the next financial year. This innovation is anticipated to bolster digital engagement, enhance revenue per transaction, and further entrench Rea Group’s competitive edge in the proptech landscape.
Market analysts maintain “Outperform” with an average target price of $250.07 AUD, projecting upside for Rea Group. Despite recent short-term price volatility and a minor weekly decline, broker consensus remains robustly optimistic. Analysts cite the group’s leading market position, resilient earnings, and impressive dividend reliability as drivers behind their "Outperform" rating, with forward projections indicating continued premium valuation relative to sector peers.
FAQ
What is the latest dividend for Rea Group stock?
Rea Group currently pays a dividend. The latest annual dividend is $2.12 AUD per share, fully franked for Australian taxpayers, with an interim dividend of $1.10 AUD paid for FY25. The company has a stable history of regular distributions, reflecting a prudent and consistent dividend policy backed by growing free cash flow.
What is the forecast for Rea Group stock in 2025, 2026, and 2027?
Based on the current share price of $231.83 AUD, the projected value for the end of 2025 is $301.38 AUD, for 2026 is $347.75 AUD, and for 2027 is $463.66 AUD. These outlooks are supported by strong fundamentals, positive analyst sentiment, and Rea Group’s leadership in digital property advertising in Australia.
Should I sell my Rea Group shares?
Holding onto Rea Group shares may be appropriate, as the company continues to demonstrate sector-leading profitability, strategic resilience, and market share. Its history of innovation and expanding presence on the Australian property market underpin its long-term growth outlook. With consistent dividends and a strong balance sheet, investors could benefit from staying exposed to its future performance.
Are Rea Group dividends eligible for Australian franking credits and what is the tax treatment?
Yes, Rea Group dividends are fully franked for Australian shareholders, meaning you receive the benefit of franking credits that reduce your tax liability. This makes the payouts more attractive after tax, as Australian residents can use these credits to offset income tax due on dividends. Capital gains are assessed under the standard Australian tax regime, with concessions for assets held more than 12 months.
What is the latest dividend for Rea Group stock?
Rea Group currently pays a dividend. The latest annual dividend is $2.12 AUD per share, fully franked for Australian taxpayers, with an interim dividend of $1.10 AUD paid for FY25. The company has a stable history of regular distributions, reflecting a prudent and consistent dividend policy backed by growing free cash flow.
What is the forecast for Rea Group stock in 2025, 2026, and 2027?
Based on the current share price of $231.83 AUD, the projected value for the end of 2025 is $301.38 AUD, for 2026 is $347.75 AUD, and for 2027 is $463.66 AUD. These outlooks are supported by strong fundamentals, positive analyst sentiment, and Rea Group’s leadership in digital property advertising in Australia.
Should I sell my Rea Group shares?
Holding onto Rea Group shares may be appropriate, as the company continues to demonstrate sector-leading profitability, strategic resilience, and market share. Its history of innovation and expanding presence on the Australian property market underpin its long-term growth outlook. With consistent dividends and a strong balance sheet, investors could benefit from staying exposed to its future performance.
Are Rea Group dividends eligible for Australian franking credits and what is the tax treatment?
Yes, Rea Group dividends are fully franked for Australian shareholders, meaning you receive the benefit of franking credits that reduce your tax liability. This makes the payouts more attractive after tax, as Australian residents can use these credits to offset income tax due on dividends. Capital gains are assessed under the standard Australian tax regime, with concessions for assets held more than 12 months.