CoStar Group Inc. offered to buy Domain Holdings Australia Ltd. in a deal valuing the property portal at A$2.65 billion ($1.7 billion), betting that falling interest rates will boost local home sales.

U.S. real-estate advertiser and analytics provider CoStar is looking to follow its recent U.K. expansion with a move into Australia.

U.S. online real estate firm CoStar is preparing a A$2.7 billion ($1.72 billion) bid for Australian property classifieds firm Domain Holdings, said a person with direct knowledge of the matter. CoStar declined to comment.

CoStar founder and boss Andrew Florance is understood to have been in Australia late in 2024 as part of his quest to gain control of Domain Group, sources say.