PHOTO: REA Group (ASX: REA)
The operator of realestate.com.au has revealed social distancing measures related to COVID-19 have taken their toll on new listing volumes.
REA Group (ASX: REA) says during April national residential listings were down 33 per cent, with listings in Sydney down 18 per cent and 27 per cent in Melbourne.
To mitigate expected losses the company is implementing a cost-savings plan, including workforce planning measures, reduced marketing expenditure, and a review of supplier arrangements.
Overall REA’s Q4 core operating expenses are expected to be approximately 20 per cent lower compared to the same period of time last year.
According to REA Group CEO Owen Wilson, pivoting to digital initiatives like virtual tours has been welcomed by clients and customers during the pandemic.
“Our priority has been to help our customers and consumers adapt to the new market conditions by providing the right support measures and new product features,” says Wilson.
“Features like Digital Inspections are receiving rapid uptake by both customers and consumers. Since launching in March, over 47,000 Buy and Rent listings now feature digital video tours and we are seeing over 2 million views across digital inspections and 3D tours each week.
“This is connecting Agents with buyers, sellers and renters, even during these challenging times.”
The COVID-19 operational update comes as REA Group announces its results for the third quarter of FY20.
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