The Domain Holdings Australia (ASX: DHG) share price is near a record high at $3.31 this afternoon as investors cheer news that Australian property listing and auction clearance rates are both rising over 2019.
As the operator of property classifieds website domain.com.au the business is a direct beneficiary of rising confidence in property markets translating into growing listings by sellers.
Helping power the sentiment higher is data out of the ABS showing that credit or home loan growth climbed a strong 3.9% over July 2019, while falling benchmark lending rates and serviceability rate assessments are all also encouraging buyers.
Over fiscal 2019 Domain disappointed investors with a slightly lame result for what was considered a 'hot' digital growth asset, as normalised revenue and profit fell 6.1% and 29.3% respectively.
This was a result management blamed on "property sales as a percentage of dwelling stock" being at their lowest levels in 20 years.
However, with all the data and fundamentals pointing to a rebound in property listings and prices over the second half of calendar 2019 the pressure is on Domain to deliver a return to growth.
The REA Group Limited (ASX: REA) share price has also been flirting with record highs this month for similar reasons, as both groups are also actively looking to expand vertically into mortgage broking and wider consumer solutions type services.
Both these digital players also offer exposure to Australia's most potent asset class in property that is commonly supported by government and regulatory policy.
While the digital business models are also capital light which should mean plenty of free cash flow available for dividends down the line.
Domain currently trades on a lower price-to-earnings multiple then REA Group, but this reflects its soft fiscal 2019 and limited track record.
As such these two internet players and other digital leaders like Carsales.Com Ltd (ASX: CAR) and SEEK Limited (ASX: SEK) could be worth a look.
