Domain Freezes Prices as CoStar Strategy Comes Into Focus

The Australian number two portal Domain has moved to cap price increases for agents and vendors, signalling a more aggressive play in Australia’s long-running portal duopoly.

According to an article in the Australian Financial Review, the CoStar-owned business will limit annual rises on both agent subscriptions and vendor-paid listing fees to 4% from July, undercutting expectations that rival REA Group could push through increases of 8–10% this year.

In an email to agents, Domain President Jason Pellegrino positioned the move as a clear challenge to the status quo and told agents that they will soon have to choose where their business stands. Domain is also bundling additional value into its higher-tier products, including free access to Matterport 3D imaging and drone photography, which could save vendors up to AUD1,000 per campaign.

The move comes amid significant change at Domain following its $1.9 billion acquisition by CoStar. The US giant is already reshaping the Australian portal, with plans announced in its Q4 release to integrate Domain into the Homes.com ecosystem and deploy its AI and software stack across the platform within 12 to 18 months.

At the same time, Domain has begun divesting non-core assets, including agent workflow tools, as it refocuses on its core marketplace and data proposition.

Financially, the portal remains a smaller challenger. Domain generated $73 million in Q4 revenue with a 28% margin, still trailing REA’s scale and profitability.