In April 2025, U.S.-based real estate technology giant CoStar Group announced its acquisition of Domain Holdings Australia Ltd. for a total of €1.78 billion, marking one of the largest real estate portal acquisitions in Asia-Pacific history. This strategic move significantly expands CoStar’s global footprint and signals the company’s serious intent to compete in the digital property space across the Southern Hemisphere.
Deal Structure and Market Context
Domain is one of Australia’s most recognized online real estate platforms, second only to REA Group’s realestate.com.au. With a strong consumer base, media integration, and established brand equity, Domain has long served as a key player in property listings and search.
CoStar already held a 16.9% stake in Domain, acquired in early 2025. It has now offered A$4.43 per share to acquire the remaining equity, representing a 42% premium on Domain’s average trading price prior to the announcement. The deal was strongly supported by Nine Entertainment, which held 60.1% of Domain’s shares and will receive approximately A$1.4 billion for its stake.
The transaction is expected to close in the second half of 2025, pending shareholder and regulatory approvals, including a review by Australia’s Foreign Investment Review Board.
CoStar’s Global Strategy
The acquisition aligns with CoStar’s broader ambition to become the dominant global player in digital real estate services. Known for its extensive platforms in the U.S. and Europe — such as LoopNet, Apartments.com, and OnTheMarket — CoStar has increasingly turned its attention to international expansion.
Australia is seen as a strategic market due to its highly digitized property sector, a population concentrated in urban centers, and a strong tradition of using online platforms to rent, buy, and sell property. The purchase of Domain offers not only access to this active market but also a base of operations for further regional growth across Asia-Pacific.
Competition and Market Challenges
This acquisition places CoStar in direct competition with REA Group, the long-standing leader in Australia’s online property space. While Domain has historically trailed REA in market share and user traffic, the infusion of CoStar’s technology, capital, and analytics could narrow the gap.
REA Group currently dominates with a more expansive user network and deep advertiser relationships. However, CoStar brings a powerful arsenal of AI-driven search tools, data intelligence, and valuation technologies that have proven successful in North America and Europe. If successfully deployed, these features could differentiate Domain’s platform and enhance its value proposition for both consumers and agents.
Moreover, CoStar is known for developing tools not only for consumers, but for professional investors, developers, and brokers, offering comprehensive data services that go beyond listing search — a space REA Group has yet to fully occupy.
Financial Implications and Market Response
Following the announcement, Domain shares rose by over 5%, while Nine Entertainment saw an 8% increase in its stock price. Meanwhile, REA Group’s stock declined by 4.2%, reflecting market concerns about increased competition and potential shifts in user and advertiser loyalty.
Analysts expect CoStar to initiate a multi-phase integration strategy, including marketing expansion, pricing incentives, and significant tech upgrades for Domain’s platform. This could spark a new wave of innovation and investment in the sector but may also compress margins for competitors.
Asia-Pacific as a Launchpad
CoStar’s acquisition of Domain is not only about Australia. Industry experts view this move as a gateway to broader expansion across the Asia-Pacific region, including potential entries into New Zealand, Singapore, Malaysia, and India.
Australia’s regulatory transparency, common-law legal framework, skilled workforce, and tech-savvy user base make it an ideal staging ground for further growth. CoStar is reportedly exploring regional partnerships and data acquisition strategies to establish a scalable regional model.
Given the increasing digitization of real estate transactions across Asia-Pacific — from property searches to mortgage origination — CoStar’s arrival may accelerate standardization and innovation across borders.
Integration and Technology Deployment
Post-acquisition, CoStar is expected to gradually integrate its proprietary tools into the Domain platform. These include:
- AI-powered search and recommendation engines
- Automated property valuation models
- Virtual tour and 3D visualization features
- Market analytics dashboards for professionals
- Machine learning algorithms to match listings with high-intent users
These upgrades are likely to benefit both consumers and real estate professionals, delivering a more seamless, intelligent, and data-rich experience across platforms.
Additionally, CoStar may introduce premium subscription tiers and services aimed at developers, landlords, and institutional investors, expanding Domain’s current B2B offerings.
Strategic Implications
From a strategic standpoint, CoStar’s acquisition underscores three key industry trends:
- Consolidation of PropTech platforms globally as companies aim for cross-border dominance.
- Shift toward data-centric models, where value lies not just in listings but in analytics and decision support.
- Localization of global tools, blending international technology with region-specific market dynamics.
The move also reflects broader investor confidence in digital real estate platforms, despite macroeconomic headwinds, as property markets continue to rely more heavily on data, efficiency, and reach.
Conclusion
By acquiring Domain for €1.78 billion, CoStar has taken a bold and calculated step toward building a truly global real estate ecosystem. The deal not only strengthens CoStar’s presence in a mature and competitive market, but also opens the door to Asia-Pacific — a region with massive untapped digital potential.
For Domain, the acquisition marks a new chapter: one that brings with it the resources and technological capabilities to evolve into a next-generation property platform. For CoStar, it is a long-term investment in regional influence and technological leadership.
And for the global industry, this move signals an era of intensifying competition, innovation, and cross-market disruption — one in which digital giants like CoStar are redefining what it means to search, sell, and succeed in real estate.
