Breaking news across our desk is that the REA Group is closing their New Zealand operations.
Dave Platter, Group Manager of Public and Investor Relations, issued this statement:
“In New Zealand, the REA Group plans to end operations of its residential real estate website, allrealestate.co.nz, on 30 November 2008.”
“The company will continue to operate its successful commercial real estate website, realcommercial.co.nz, which is the market leader by unique browsers. (Nielsen//NetRatings)
We are grateful to our residential real estate customers for their support and we wish them the very best in the future.”
Internal sources say the reasons for closing the New Zealand operations were the tough competitive market in New Zealand and the challenges that allrealestate.co.nz faced. The closure of the New Zealand office will result in 5 people being made redundant.
According to information released to the Australian Stock Exchange at the end of June 2008, 527 agents used the site and listed 41,000 properties. propertyportalwatch.com estimates revenues would have been around $1 million per annum, based on each agent paying market prices of approx $200 per month. For the 2008 financial year, the REA Group reported total revenues of $156 million.
The REA Group entered the New Zealand market in mid 2005, initally by adding a map of New Zealand to the realestate.com.au site. In September 2005 it launched with a unique URL: allrealestate.co.nz.
Sources tell us that in June 2008, there were 230,000 unique visitors to allrealestate.co.nz, a similar sized audience as its nearest competitor, the Real Estate Institute backed realestate.co.nz.
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