PHOTO: The case is expected to send shockwaves through the industry, as Harcourts is one of the country’s biggest real estate brands. FILE
New Zealand’s property market has been rocked by explosive allegations that four Harcourts franchisees colluded in cartel-style agreements—potentially driving up costs for home buyers and sellers across Christchurch.
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According to the Commerce Commission, the alleged cartel conduct involves:
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Four Seasons Realty 2017 Limited
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Gold Real Estate Group Limited
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Grenadier Real Estate Limited
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Holmwood Real Estate Limited
Together, these franchisees held a “significant share” of the Christchurch real estate market, raising serious questions about fair competition.
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🔎 What the Commission Says
Commerce Commission chair Dr John Small revealed that the franchisees entered into agreements that impacted pricing structures, including commission rates, despite supposedly competing against each other.
“For most Kiwis, buying and selling a house is a major transaction. People should be able to trust the process is free of collusion,” Dr Small said.
The Commission stressed that cartel laws apply even within franchise networks, warning that breaches could carry criminal sanctions and hefty financial penalties under the Commerce Act.
⚖️ Harcourts’ Response
Harcourts New Zealand has confirmed it received official proceedings, stating:
“We take any allegations seriously and have co-operated with the Commerce Commission’s process.”
The case is expected to send shockwaves through the industry, as Harcourts is one of the country’s biggest real estate brands.
Why This Matters
If proven, this case could mean Christchurch homeowners paid more than they should have when selling property—potentially setting a precedent for future real estate investigations nationwide.