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REA Group has announced today that it will freeze its prices until at least May 2016.
It comes after the company had previously guaranteed not to raise prices on realestate.com.au until at least January 2016.
The extended price freeze should be welcomed by agents, many of whom were upset when REA Group introduced its controversial market-based pricing model in mid-2014.
Chief executive Tracey Fellows said the price freeze would put the pressure on Domain Group.
“We know our number two competitor has chosen to raise their prices, so agents and vendors will need to decide whether their value proposition measures up. What we do know is that realestate.com.au has more listings and has twice the visits of the nearest competitor,” she said.
“Our ability to hold our prices and provide price certainty until mid-next year is part of our ongoing commitment to partner with our customers and build a long-term sustainable relationship and a thriving real estate industry.”
REA Group posted a $210.2 million annual profit in August. Earlier this month, it made a $578 million offer for the 77.33 per cent of iProperty Group it doesn’t already own.
[Related: REA Group poised to enter home loans market]
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