Fairfax Purchases Allhomes For $50 Million
30 September 2014 Symon Badenoch
Fairfax has recently purchased Allhomes.com.au for a reported $50 million. Fairfax have their own residential portal site (Domain.com.au) and have ownership of The Canberra Times so it will be interesting to see how this will purchase will change the advertising landscape in the ACT.
As far as we see it, Fairfax could not compete with Allhomes.com.au on a local level so it was easier to buy them out than to compete. Compared to other residential portals covering ACT, Allhomes.com.au was the most expensive with Domain.com.au being the cheapest. Fairfax will want a return on their purchase so I suspect they will push the prices higher in the coming 12 months.
Whilst the ACCC has approved the sale, reducing the competition further in the ACT is potentially dangerous and we hope that realestate.com.au can continue to make inroads into the online market in the ACT otherwise you will see online marketing costs increase dramatically for all vendors and landlords.