There were numerous instances of price increases in the industry over the last month, supporting our view of high pricing power of
the business model. Online classifieds in the real estate space raised prices by 10%-25% in Australia, the world?s most heavily
monetized market, suggesting scope for further growth in market size; this should be reassuring for other real estate online
classifieds properties.
In the Australian real estate classifieds market, both market leaders raised prices recently. REA indicated it has raised listing
prices by at least +10%, while Domain has raised listing prices by +20%-25%.
OLX has introduced listing fees and premium visibility features in real estate and auto verticals in Brazil.
Marktplaats, a subsidiary of eBay Classifieds Group, has raised listing fees across the board.
Hemnet?s acquisition by Schibsted was in focus in May as the Swedish Competition Authority took a negative stance on the deal in
the proposed form. However, we note that the company continues to have a dialogue with the regulator to explore potential
remedies that could address regulatory concerns. We believe the market will follow the process closely given the potential
implications for Swedish market competition and consolidation potential in the region overall.
Although native mobile only online classifieds apps are barely three years old as a phenomenon, initial consolidation efforts in the
space have started; letgo (1 year old) of Naspers and Wallapop (c.2 years old) have announced a merger and received US$100 mn of
financing to compete with OfferUp. This suggests there is potential for rationalisation of competition while financing of assets with
uncertain payback becomes scarce.
