CoStar Group Acquires Domain, Creating a New Era of Innovation for Australia's Property Market

CoStar Group has completed its acquisition of Domain Holdings Australia, a leading property marketplace in Australia. The acquisition combines CoStar Group's global scale, technology leadership, and pro-agent approach with Domain's expertise and portfolio of trusted Australian property brands. The companies plan to invest in innovation, digital tools, and customer experience enhancements to empower agents and deliver value to sellers and buyers. The acquisition is expected to increase competition in the Australian property market.

CoStar Group, Inc. (NASDAQ: CSGP) has completed its acquisition of Domain Holdings Australia Limited, one of Australia's leading property marketplaces. The acquisition, announced on August 27, 2025, combines CoStar Group's global scale, technology leadership, and pro-agent approach with Domain's deep expertise and trusted Australian property brands.

CoStar Group, founded in 1986, is a global leader in commercial real estate information, analytics, and online marketplaces. Domain, with its 6.6 million monthly users and 60% market share in Australian property listings, brings significant local knowledge and a robust digital footprint. The acquisition aims to leverage Domain's user base and local expertise with CoStar's cutting-edge technology, such as 3D digital twins and AI-driven analytics, to enhance cross-border real estate transactions.

The companies plan to invest in innovation, digital tools, and customer experience enhancements to empower agents and deliver value to sellers and buyers. This strategic move is expected to increase competition in the Australian property market, challenging existing players and driving margin growth.

CoStar Group's acquisition of Domain is part of its broader strategy to expand in the Asia-Pacific region, leveraging Australia's $8 trillion market and its $3.7 billion cash reserves. The deal underscores CoStar's ability to justify the 23x EBITDA premium and sustain 15%+ revenue growth, as validated by regulatory approvals and proven integration success, such as its acquisition of Matterport.

For investors and financial professionals, this acquisition signals a significant shift in the global proptech landscape, demonstrating CoStar Group's strategic prowess and commitment to innovation. The real estate technology sector is no stranger to bold moves, but CoStar Group's acquisition of Domain stands out as a masterclass in strategic expansion and synergy realization.

References:
[1] https://www.stocktitan.net/news/CSGP/co-star-group-completes-acquisition-of-domain-ushering-in-a-new-era-97bwp4nkcb75.html
[2] https://www.ainvest.com/news/costar-aud-3-billion-bet-australia-game-changer-real-estate-tech-2508/