New Zealand Real Estate Agencies Accused of Price Fixing

The property market in New Zealand is current drenched in controversy as accusations of price-fixing is being reported.  Consumers Institute chief executive, Suzanne Chetwin, expressed concern regarding agencies involved in the said price-fixing, especially that charges were reportedly filed by the Commerce Commission against real estate agencies across the New Zealand involved in price fixing and anti-competitive behaviour. Chetwin via nzherald cited that agents were not looking for the best interest of the sellers or buyers involved in a transaction, she detailed that;

"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," Chetwin also said that, "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."

In line with this, 13 national and regional real estate agencies are being accused of the said price fixing and now facing some charges in High Court at Auckland by the Commerce Commission. Aside from the 13 agencies, another 8 agencies received warnings from the Commission. Newstalkzb shared that "proceedings relate to alleged conduct in 2013 and 2014 by the head offices of Barfoot and Thompson, Harcourts Group, LJ Hooker New Zealand, Ray White and Bayleys, and separately by agencies in Hamilton and Manawatu."

Up to now no comments were given by the parties involved in the said controversy. However, "Commission alleges the parties agreed that vendors would have to pay the listing fee to have their property advertised on Trade Me, and that the agencies would not commit to any preferential or discounted listing fees with Trade Me," said nzherald. And some of the companies went for settlement and would be paying some penalties as imposed by the court.