PBL Media and Microsoft are closing real estate website myhome.com.au, just over a year after it was launched.
The 35-strong staff was told of the decision to close the site on Friday following a decision by the company directors that day. It is believed the majority of staff will loose their jobs when it shuts on 31 May.
A spokeswoman for PBL Media confirmed the decision but refused to make any further comment.
PBL launched the site in March 2007 to take on established players including REA Group’s realestate.com.au and Fairfax Media’s domain.com.au.
It was backed by more than $20m in development and marketing, and had a weekly program on the Nine Network.
It is understood that a deal to sell part of the business to real estate agents LJ Hooker collapsed last week, and combined with its financial losses led to the decision to close the site.
While the online property market is buoyant, it is currently dominated by the majority News Ltd backed REA Group which accounts for 71% of market share with its realestate.com.au and associated web sites. Fairfax Digital’s Domain has the second largest markets share, followed by the recently launched homehound with myhome.com.au languishing in fourth place.
A report issued by Frost & Sullivan last week forecast 23% annual growth over the next four years for the online real estate classified market, resulting in a total of $242.1m in revenues by 2011.
