US-based real estate giant CoStar Group is making a calculated push into the Australian property listings market.
While its proposed $3 billion takeover of Domain has captured headlines, a smaller but symbolically potent acquisition has quietly slipped into place.
According to Zoe Samios in the Australian Financial Review, CoStar has acquired the Homes.com.au domain for $22.8 million, an early signal of how the company might reshape its local presence, regardless of whether the Domain deal proceeds.
The domain buy, from a company founded in 2018 by property developer Pat Carbone, aligns with CoStar’s pattern of investing in strong, brandable web real estate ahead of market expansions.
Andy Florance, founder and CEO of CoStar, confirmed the deal this week, describing Homes.com.au as a “clear, strong and memorable URL.”
More than just a digital asset, the purchase gives CoStar flexibility to introduce flanking brands or explore a major rebrand of Domain if its takeover is approved.
Andy Florance, founder and CEO of CoStar
A platform rivalry with high commercial stakes
For advertisers, agents and platform stakeholders, the implications are significant.
Domain and REA Group’s realestate.com.au have long formed a tight duopoly in Australian property listings.
But Florance, whose company runs Homes.com in the US and recently acquired the UK’s OnTheMarket, has suggested publicly that both Domain and REA underperform by international standards.
Speaking to analysts last month, he was direct: “We will bring what we built in Homes.com to Australia and the United Kingdom to win over consumers.”
The company has poured more than $1 billion into marketing Homes.com, chasing consumer mindshare and, crucially, advertiser budgets.
With a market cap north of $47 billion, it has the firepower to replicate that playbook in Australia.
Media, money and market realignment
At the heart of this industry shake-up is Domain’s former majority owner: Nine Entertainment Co.
With CoStar’s $3 billion acquisition of Domain now moving forward, Nine is poised to receive a $1.4 billion windfall, nearly half of which will be returned to shareholders via a fully franked special dividend.
That cash injection reshapes Nine’s balance sheet, reducing its market capitalisation from approximately $2.6 billion to just over $1 billion.
While Domain had been a core pillar in Nine’s cross-platform commercial strategy, particularly in real estate advertising, the sale reflects a strategic shift.
Nine now has the opportunity to refocus on its broader media assets, including broadcast, streaming, radio and publishing.
How it deploys the proceeds, whether into original content, digital transformation or M&A activity, will be closely watched by investors and trade partners alike.
CoStar former CEO Jason Pellegrino
Domain’s next chapter under CoStar
With the acquisition a done deal, CoStar is wasting no time planning Domain’s next evolution.
The US giant has already started sounding out potential candidates to lead the business post-acquisition. According to the Australian Financial Review, CoStar has floated the return of former CEO Jason Pellegrino, who previously led Domain after a stint at Google, as one option.
His prior tenure was marked by some tension with Nine’s leadership, but his product and platform credentials remain strong.
This leadership transition underscores a broader challenge: how to modernise Domain’s brand, tech stack and market proposition without alienating long-standing clients and media partners.
With the recent purchase of Homes.com.au, CoStar now has the optionality to reposition Domain entirely, either as a standalone portal, a flanking brand, or something new altogether.
A moment of inflection for Australia’s property platforms
With Domain officially changing hands and Homes.com.au under its belt, CoStar is no longer the new kid on the block, it’s a global heavyweight with clear ambitions to reshape the Australian property listings landscape.
For vendors and buyers, the goal is a better digital experience. For advertisers and media agencies, the prize may be more meaningful engagement, broader reach, and improved ROI.
One thing is certain: the long-standing balance between REA and Domain has shifted.
And with CoStar’s backing, a new phase of platform competition, and commercial innovation, is about to begin.