9News: Real Estate giants in crisis

Real Estate giants in crisis

Peter Overton: Two of Australia’s real-estate stars are at the center of massive corporate shake-ups, pointing to tough times ahead for housing.

The Nine Networks Finance Editor Ross Greenwood has been following developments.

Ross Greenwood: Shares in both companies – McGrath Real Estate and Domain Group fell spectacularly today.

John McGrath, boss of McGrath Real Estate and regular on The Block television program, today saw his Chair, his Chief Executive, Company Secretary plus half the board resign.

It coincides with McGrath, Australia’s largest Real Estate Agents, saying it will lose money in the next six months as property listing have slowed with cooling capital property prices.

McGrath share prices fell plunged from $2.10 when it floated two years ago to just 52 cents. The shares today were down almost 10 per cent, and that says everything about what investors think about the housing outlooks for 2018.

Also – online real estate giant Domain Group said its CEO Anthony Catalano quit, just two months after the companies’ shares were listed on the ASX.

Domain’s major shareholder – Fairfax Media – owner of the Sydney Morning Herald and The Age.

Catalano, the father of eight, and owner of luxury resort Rae’s on Watego’s in Byron Bay citied family reasons for the resignation.

He didn’t want to move from Melbourne to Sydney – but its an embarrassment for Fairfax

Domain shares today collapsed 12 per cent on that news.

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