The Australian real estate landscape is undergoing scrutiny as the Australian Competition and Consumer Commission (ACCC) delves into the rising advertising costs on the dominant property portal, realestate.com.au. Operated by News Corp’s REA Group, the platform has been under investigation after complaints from real estate agents regarding the increasing fees, which have surged by 30% in recent years.
REA Group’s realestate.com.au has long been Australia’s most popular online property listing service, boasting over 12 million monthly users. However, the platform’s dominant position in the market has raised concerns that it has fostered an environment where advertising costs for property listings are disproportionately high, ultimately pushing up the costs of buying and selling properties. For example, the cost of a premium listing in cities such as Sydney and Melbourne can now reach up to $4,000. This has sparked frustration among real estate professionals who argue that the pricing model is unsustainable and harmful to both agents and consumers.
Industry stakeholders, including over 170 real estate agencies, have voiced concerns that these inflated advertising fees are affecting their ability to provide affordable services to clients. Some agents even attempted to secure approval in 2016 to collectively negotiate or boycott the fees, believing that such a move could push for a fairer market. The ongoing investigation by the ACCC is expected to explore whether these price hikes are a result of anti-competitive behaviour and whether action is required to foster better competition within the real estate sector.
REA Group defends its pricing structure, maintaining that the fee increases reflect the enhanced value and digital tools provided to agents and vendors through its platform. However, critics suggest that these rising costs may be passed on to consumers, further inflating property prices and making the market less accessible.
As the ACCC investigation continues, it remains to be seen whether the regulator will take further steps to address the concerns raised by the industry. The outcome of this probe could have significant implications for the future of real estate advertising in Australia, particularly in ensuring that the costs associated with buying and selling homes remain within reasonable limits for all parties involved.
