A new pricing model that linked ads with postcodes, factored in median house prices and supply and demand dynamics led to price points rising.
REA chief executive Tracey Fellows told the Australian Financial Review that due to feedback from customers, the number of price points for premier property listings will be reduced.
“The connection of the price that the vendor pays for selling their property, based on the location of that property, makes complete sense to our customers,” Ms Fellows said.
“In the implementation of this change, of course, our customers had thoughts that they shared with me. And my job as CEO is to respond to what the customer has said.
“I can confirm we are reducing the complexity and number of price points for premier property across Australia.”
A spokesperson for the REA Group said the company had offered Victorian agents the choice of receiving a 7.5 per cent royalty payment to be handed onto vendors or $22 price per property sold in return for sales information, provided they signed up to the new market-based pricing model by 1 September.
REA claims Premiere property listings receive an average of 16 times more views and eight times more enquiries than standard listings.