PHOTO: ABC NEWS.
ACCC Takes Aim at REA Group’s Sky‑High Home‑Sale Advertising Fees
🌏 Global‑Leading Ad Fees
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Selling a home in Australia now costs more to advertise than in almost any other country.
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REA Group—with its flagship platform realestate.com.au—controls the lion’s share of all online listings and is majority-owned by News Corp.
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Agents report premium listings for major cities can cost up to $4,000, a staggering ~50× increase since 2009.
⚖️ ACCC’s Investigation
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The Australian Competition and Consumer Commission (ACCC) has issued a formal inquiry and a Section 155 order for information on REA’s subscription and pricing structures.
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The probe began after sustained complaints, including from the Real Estate Institute of NSW (REINSW), which flagged fee increases of 10–30% per year—far above CPI.
🏢 Market Dominance & Ecosystem Expansion
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REA Group reaches over 12 million unique monthly users, holding roughly 50% more traffic than its nearest rival, Domain.
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Beyond listings, REA has grown aggressively—owning digital forms providers, agent software tools, mortgage comparison sites, and PropTrack data services.
😡 Industry and Consumer Pushback
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Agents say they’re trapped—forced to advertise on REA or lose visibility, inflating costs for vendors and clients.
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Early 2024 saw 170 agencies seek ACCC backing to collectively negotiate or boycott the platform. They argue REA’s pricing “distorts market competition.”
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REINSW CEO notes annual fee hikes “well above CPI” with some rises reaching 30%, raising affordability concerns.
🔍 REA’s Defense
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REA says pricing reflects the significant value it provides—reach, leads, tools, and data.
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The company confirms it’s cooperating with the ACCC and remains committed to delivering “value and flexibility.”
🚨 Why It Matters to You
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For home sellers: Steep listing fees may be passed on in agent commissions or limited marketing scope.
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For buyers: Reduced competition could lead to fewer listing options and higher prices.
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For agents: Smaller agencies risk being squeezed out or forced into costly subscriptions.
🔭 What Comes Next?
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The ACCC probe is at an early stage; no conclusions yet.
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Regulators may impose new rules or enforce fair competition in digital property platforms.
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The outcome could rebalance online property-ad pricing and reshape REA’s business operations.