By Stuart Condie


SYDNEY--REA Group Ltd. said Australian residential property listings fell by 18% on year in October and warned that more interest-rate rises could put further pressure on sale ad volumes.

The Australia-listed property advertiser on Wednesday said that property prices and volumes had declined following rapid interest-rate rises. The Reserve Bank of Australia last week raised interest rates for a seventh straight month, taking the country's cash rate to 2.85% from 0.1% at the start of May.

"Further rate rises may see this continue, however it is also clear the market is supported by positive fundamentals including record-low unemployment, high household savings and increasing international migration," REA said.

October volume declines were particularly pronounced in Australia's two largest cities. REA said that Sydney listings were down 31% on year, while Melbourne listings were down 29%. It said the size of the decline reflected a rush of listings in the prior corresponding period following the loosening of Covid-related restrictions.

Growth rates for the remainder of fiscal 2023 will continue to reflect strong prior-period listings volumes, REA added.

REA said that first-quarter revenue rose 16% on year to 305 million Australian dollars (US$197.7 million). Operating expenses for the three months through September jumped 22%.

Excluding the impact of its India business, REA said it still aims for FY 2023 revenue to grow at a faster pace than expenses.

REA is 61% owned by News Corp., which also owns Dow Jones & Co., publisher of this newswire and The Wall Street Journal.


Write to Stuart Condie at stuart.condie@wsj.com


(END) Dow Jones Newswires

11-08-22 1735ET