REA did this in 1999, Now its Openns Turn

The Rise of Disruptive Technology in Real Estate: A Look at REA Group

From Humble Beginnings

The story of REA Group's is nothing short of inspiring. Launched in an Australian garage in 1995, this enterprise soon paved its way to become a prominent disruptor in the real estate industry.


Listing and Challenges

REA made its debut on the ASX in December 1999 at 1.09 AUD. However, this proved to be a challenging period. Internet access was scarce, with only 19% of Australians online. Additionally, the looming dot-com bust and market crash of 2000 led to a turbulent start for many technology-driven companies.


A Look at REA's Stock Price Evolution

Dec 1999: Launched at 1.09 AUD

Sept 2001: Stock price fell to 0.06 AUD – $60 then bought you 1000 REA shares

Mar 2010: The share price rose to $10/share – $60 becomes $10,000

Jan 2013: $20/share – $60 becomes $20,000

Dec 2013: $40/share – $60 becomes $40,000 

March 2014: $50/share – $60 becomes $50,000

March 2020: Dipped to $72 during the pandemic onset – $60 becomes $72,000

Nov 2021: Peaks at $176.80 – $60 becomes $176,800

Presently in 2023: $60's becomes $163,000


My Take on Openn Negotiation

In my opinion, Openn Negotiation holds the potential to mirror REA's success in the coming 10 years, especially given the vast North American market. My reasoning includes:


1. Internet Accessibility Evolution

From 1999 to 2023:

Australia connectivity: From >20% to 96.2%

USA: A rise from 35% to 92%

2. Property Obsession

Both Australians and North Americans exhibit a strong passion for property ownership and investment. The North American real estate market vastly overshadows Australia, with 38 times more agents and 17 times more property sales.

3. The Power of Data & AI

The increasing focus on AI technology means data becomes more vital. Large hedge funds and corporations are now targeting data, as evident from REA Group's significant investors.

4. Protecting Assets & Partnerships

In 2022, Openn secured patents in North America, strengthening its position and collaboration with prominent associations like the Canadian Real Estate Association (CREA) and

5. Aligning with Giants

Openn's affiliation with Core Logic, the world's Number 1 property data company owned by Stone Point Capital, enhances their ability to monetize unique data.

6. Data Collection

Openn's data collection surpasses even REA. This encompasses full buyer details, financing specifics, price increments, and real-time participant data and more.

7. Market Dynamics

Changing market conditions, with more properties needing to be sold due to global financial changes, will likely increase the demand for platforms like Openn.

8. Proven Track Record

Openn has consistently achieved quick sales and secured higher-than-anticipated prices through transparent bidding.

9. Adapting to Technology

Real estate agents in Australia will need to embrace new technology to remain competitive. Oddly, Australian agencies often await validation from the US market.

10. Quick Adoption in North America

With 1.7 million agents selling around 7 million homes annually, North American agents are agile in adopting new technology.

11. Simplified Training

The North American version of Openn requires no agent training, in contrast to the first inception of the Australian platform.

12. Broad Integration

Openn now integrates with the software used by a significant number of Australian Agents and Multi-listing services in North America, giving them access to vast numbers of agents.

13. Addressing Market Needs

Openn addresses long-standing issues in the real estate industry, such as transparency, fairness, and efficiency.

14. Market Dynamics

In contrast to the Australian market, both selling and buying agents dominate the US and Canadian markets, enhancing Openn's potential for success.

15. Path to Profitability

With a 'Software as a Service' model, Openn expects to be in profit by December 2024.


Disclaimer: The above is based on my opinion and observations and should not be construed as financial advice.