SYDNEY, NSW – June 11, 2025
*Aggregated content obtained using Google Gemini AI
-Australia’s competition watchdog, the Australian Competition and Consumer Commission (ACCC), has confirmed it is in the early stages of an investigation into REA Group, the $33 billion owner of realestate.com.au.
-The probe comes amid mounting allegations of price gouging and concerns about competition within the nation’s soaring real estate sector.
In a rare public statement, the ACCC on Thursday acknowledged its concerns regarding the “important real estate sector.” Typically, the regulator refrains from commenting on ongoing, confidential investigations, but made an exception in this instance. “As the investigation is ongoing, the ACCC won’t comment further at this time. The investigation is at an early stage, and we’re yet to form a view,” an ACCC spokeswoman stated.
The investigation follows revelations by The Australian Financial Review that the ACCC was looking into REA, which is majority-owned by News Corp, over claims it is exploiting its dominant market position to charge excessive fees. REA Group has since confirmed it received a Section 155 Notice from the ACCC, requiring it to provide information about its subscription offerings, and has pledged full cooperation.
Soaring Listing Costs and “Postcode Tax”
REA Group generates revenue primarily through subscription fees charged to real estate agents and additional charges for each property listing.
These listing fees vary significantly, depending on the desired prominence of the advertisement and its geographical location, with some premium listings in high-end suburbs reportedly costing as much as $5,000 – a dramatic increase from approximately $75 in 2009.
Agents lament that REA has consistently hiked its listing prices annually.
“While subscription fees remained largely unchanged for a decade, REA has informed agents of upcoming increases from July 1. One anonymous Victorian agent reported a staggering 110 percent monthly increase in their subscription fees, from $190 to $399.”
“Critics, including Aaron Scott, co-founder of bRight Agent, describe REA’s pricing model as a “postcode tax,” where advertising costs are dictated by the affluence of a property’s location rather than the actual cost of providing the online service.”
“The ACCC needs to look at whether charging different amounts based on the affluence of a postcode is fair and appropriate,” Mr. Scott urged.
The impact of these rising costs is directly felt by consumers. Pam Tindill, who sold her unit in north-east Melbourne recently, was “quite surprised” to find a significant portion of her nearly $5,880 marketing bill—specifically $3,289—went to listing her property on realestate.com.au. “We had no choice really to pay the price – no negotiating,” Ms. Tindill told ABC News.
Market Dominance Under Scrutiny
Former ACCC chair Allan Fels noted that while REA wasn’t subject to investigations during his tenure, the company has since become “immensely powerful.” The regulator’s intervention comes after years of complaints that REA Group, now the largest real estate listings company in Australia, is leveraging its market power to the detriment of both agents and consumers.
The company’s significant growth has been fuelled by heavy investment in its primary portal and the acquisition of numerous businesses that provide valuable data on consumer habits. This expansion has led to concerns among agents that REA could eventually charge for buyer/seller leads or even evolve into a mega real estate agency, potentially sidelining independent agents.
“Tim McKibbin, CEO of the Real Estate Institute of NSW (REINSW), previously wrote to the ACCC, citing evidence of REA’s escalating fees. He argues that REA is nearing “complete market saturation” and “very close to having a monopoly,” allowing it to impose “extraordinary” price rises at a time when housing affordability is a critical issue for many Australians.”
Another point of contention is REA’s policy that prevents individual consumers from directly listing their homes for sale on realestate.com.au, mandating the use of a licensed real estate agent.
While REA’s rival, Domain, also increases listing prices annually, some agents estimate REA Group controls over 80 percent of the listing market, enabling it to implement more significant price hikes.
REA Group has released a statement affirming its commitment to providing “choice, value and flexibility” to its customers and consumers, and reiterating its full cooperation with the ACCC. The investigation is ongoing, and the ACCC is yet to form a definitive view on the allegations.
