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Here's the The Lowdown
from DN Journal,
updated daily
to
fill you in on the latest buzz going around the domain name industry.
The Lowdown is
compiled by DN Journal Editor & Publisher Ron
Jackson. |
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GGRG
Report Says Chinese Buyers Gobbled Up a Bigger
Piece of the Liquid .COM Pie in 4Q-2016 -
Current Quarter Forecast Also Included
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Domain
brokerage and consultancy
GGRG.com
has just released their
latest
free quarterly report
breaking down aftermarket sales of
"liquid domains" (short
.com domains that are relatively
easy to sell at prevailing market
prices). The new
report (.pdf file)
covering the 4th quarter of 2016
that I received from GGRG founder Giuseppe
Graziano noted, "China continued to gain significant market share in the last quarter of 2016. Chinese registrants were the
only net gainers of liquid domains, with owners in the US, Europe and rest of the world
losing approximately 10% of their share. The biggest ownership change came in the
4L .com category
("L"= letter,
"N" = number), with China adding over
45,000 domains, or 10% of the category."
Graziano added, "While China is leading the market with
over 50% of the registrations in 2N, 3N, 4N and 5N .com,
the US is still the market leader for 2L and 3L .com domains, the
two most developed
categories . This suggests that while Chinese investors are clearly leading investor demand, US companies are still the ultimate end user
of liquid domain names."
The
report's Executive Summary section includes
some interesting sales data. It
notes,
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GGRG
Founder Giuseppe Graziano
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"Disclosed sales increased
12% to 5,455 domains
sold, and total sales volume
increased 7.7% to $5.48 million.
Transactions of top tier domains
typically remain undisclosed with
the exception of HG.com
(rumored to have sold for $3,770,000
to a Chinese company). There were no
recorded transactions of LL, NN and
NNN .coms in Q4-2016."
"The increase in sales volume came mostly from
lower tier categories like 4L and 5N .coms. As predicted in our Q3 forecast, these categories seem to have reached a support level: 5th percentile values increased 6.51% for 4L .com and
8.27% for 5N .com. Transactions of 3L .com domains registered a notable
57% increase in number of units sold; the increase in supply however translated into a sharp 17% decrease of the 5th percentile values, which decreased from $18,200 to $15,100. The number of disclosed 4N .com transactions was unchanged from last quarter (11 domains sold), but sales volume almost
doubled, increasing from $259,936 to $512,983."
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Image
from Bigstock |
Looking
ahead, the GGRG report sees
this for the first half of
Q1-2017: "We forecast a decrease in investor demand due
to 1) the slow period around
Chinese New Year; and 2) the increased activity in
bitcoins, an investment alternative to domain names for Chinese buyers."
"In terms of market opportunities,
LN & NL domains still appear to be undervalued because their retail price is quite low in relation to their scarcity
(520 domains) and high development index
(27.31%). The low concentration index, the lowest among liquid domains, suggests that this category is one of the least susceptible to market manipulation and therefore unexpected surges in supply."
"Also, since end user demand does not seem
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to favor domains with Chinese Premium letters, domains with vowels seem to
offer better prices than their Chinese Premium counterparts." |
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(Posted
February 14, 2017) |
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