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Domainers immune from the lockdown bump?

Kevin Murphy, July 30, 2020, Domain Sales

While the can be little doubt that the domain industry saw a boost in the second quarter due to the impact of coronavirus lockdown mandates, the same may not be true for those playing in the secondary market.

Data out from Escrow.com last night shows the weakest quarter for secondary market sales since the company started publishing its data two years ago, with average prices and overall sales volume down.

The company, which acts as a trusted intermediary for domain transfers, said it processed $55.2 million of sales in Q2, down from $85.8 million in the first quarter.

All of the primary geographical markets saw a decline apart from Hong Kong, with the US suffering the worst dip.

The US obviously has taken the biggest dose of the virus and has little in the way of a social safety net, so it’s perhaps not surprising that buyers are being more cautious with their cash.

The declines fly in the face of data and commentary from the primary market, where registries and registrars have generally been seeing unexpected boosts to sales as lockdown-impacted small businesses rush online.t

It’s tempting to speculate that while the virus has created more customers for domain names, fears over the incoming recessions have made buyers less likely to want to splash out on a premium domain.

Escrow.com said that the median price of a domain name without associated content dropped from $3,000 to $2,500 in the quarter.

Aussie ccTLD surges under coronavirus lockdown

Australia’s .au ccTLD may have been in decline recently, but it saw a surge in new domain registrations during its coronavirus lockdown, according to registry stats.

auDA said that 48,754 new .au domains were registered in April, a more than 23% increase on its April 2019 number.

The registry called this leap “the biggest month for new domain name creations we’ve seen in a while”. It averages about 40,000 per month, with seasonality.

The overall number of extant registrations was down a bit to 3,168,883, but auDA chalks this up to the expiration of domains registered during registrar promotions a year ago.

Australia was under its lockdown, which was less severe than in other countries, for the whole month of April. The measures were put in place March 21 and relaxed last week.

Numbers for March show a year-over-year decline of 1.4% in new adds.

While auDA does not attribute its April growth to lockdown, I think the numbers show that the movement restrictions imposed certainly didn’t hurt .au’s business.