It doesn't look good for New Zealand's biggest name firms after 13 real estate agencies have been accused of price-fixing.
NZ Herald reports that a New Zealand consumer advocates says that house buyers and sellers alike may have suffered from the alleged price-fixing. Suzanne Chetwin, Consumers Institute chief executive, voiced out her concern in the massive house selling industry which involves about $1.2 billion turnover annually.
The chief executive's reaction is based on the annoucment made that prominent real estate agencies across the country are facing charges raised by Commerce Commission due to the allleged price fixing and anti-competitive behaviour.
The increase in Trade Me listing, which increased in 2013, was allegedly paid by the vendors, not the agencies, the agents agreed.
Speaking to NZ Herald, Ms. Chetwin said, "From a consumer perspective, the actions of the real estate agents meant properties for sale were not being viewed as widely as they should and vendors were being asked to pay to have properties listed on Trade Me."
"In that regard, real estate agents were not acting in the best interests of sellers or buyers, but trying to force Trade Me to give them a better offer for advertising," she added.
The alleged conduct was said to have transpired in 2013 and 2014 when Trade Me have changed its subscription fee from a monthly to a per-listing for properties being advertised for sale on its website.
Trade Me is an auction website, the largest one operating in New Zealand.
One of the agencies in question, Bayleys, has agreed a settlement in the principle with the Commission, the report continues. When asked for a comment, a Bayleys representative said that matter is already at court and no further comment can be provided.
It may be noted that none of the other agencies involved has settled. Barfoot & Thompson plans to issue a press release while Ray White has not agreed to any settlement according to Ray White NZ chief executive Carey Smith himself.