CoStar Considers Domain Rebrand After Multi-Million Dollar Homes.com.au Purchase

CoStar Group is set to undertake a major rebrand for Australian real estate portal Domain after purchasing the Homes.com.au domain for a reported A$22.8 million (USD 14.7 million).

The Australian Financial Review says CoStar's purchase opens the door to a major rebrand for Australia's number two portal, which has struggled to keep pace with market leader realestate.com.au in recent years.

AFR stated that two anonymous sources said the domain purchase happened shortly after CoStar opened talks with Domain about a potential acquisition. CoStar boss Andy Florance reportedly said the purchase would open up options for marketing Domain post-acquisition.

However, sunsetting the Domain name will come at a reputational cost—the company was founded before realestate.com.au.

Andy Florance told the AFR:

"[Homes] is a clear, strong and memorable URL. Owning the brand gives us the optionality to go to market with flanking brands or to make a big statement with a major rebrand. Our goal is to give vendors and agents more value for their investment and buyers a more enjoyable experience."

Florance previously hinted that CoStar is ready to rebrand its main British asset, OnTheMarket, to Homes.co.uk, during the Online Marketplaces European Property Portal Watch conference in 2024.

A domain name purchase of this magnitude indicates a seriousness on CoStar's part to rebrand its network of residential portals under one international brand.

While Homes.com continues to make inroads in the United States, British challenger OnTheMarket has yet to be rebranded. A Domain rebrand to Homes.com.au is unlikely to be at the top of CoStar's to-do list when it completes its purchase, probably later this year—but at nearly $15 million, it won't be put off forever.

Meanwhile, CoStar has reportedly added Jason Pellegrino to its shortlist of CEO options, suggesting an unexpected return for the former CEO after he stepped down in 2024.

The reported deal means property developer Pat Carbone, who founded a company called Homes.com.au and paid for the domain name in 2018, will receive a hefty windfall.