REA Group valuation slashed by billions as brokers cut targets on budget tax fears

REA Group faces a significant repricing of its equity value after major brokers Macquarie and UBS slashed their price targets for the Australian property listings giant.

The downgrades wipe billions off the company's market valuation, driven by concerns that recent federal budget tax changes will suppress transaction volumes in the housing market.

The broker cuts reflect a growing consensus that the new fiscal policy will create a "lock-in" effect among homeowners and investors.

With higher tax liabilities on the horizon, owners are expected to stay put rather than sell, potentially slashing the number of properties coming to market over the next three years.

For a platform like REA, whose revenue is tightly coupled with listing volume and transaction activity, a contraction in supply poses a direct threat to near-term growth.

The move underscores the broader market sensitivity to the 2026 federal budget, which has triggered a wave of reassessment across sectors exposed to property and construction.