From The Australian:
REA Group has extended a price freeze across its premium advertising packages for residential properties, heaping further pressure on rival Domain to curb its price increases.
The operator of realestate.com.au, Australia’s No 1 property website, has committed to holding the line on prices until at least May next year at a time when Domain is charging real estate agents higher rates even though its online audience is vastly smaller.
…A downturn in auction clearance rates in Sydney and Melbourne has boosted REA’s advertising take because property ads stay on site for longer, while a big surge in website visitors has paid off by driving more vendor inquiries for agents. “Realestate.com.au is the clear market leader across every device that consumers use to search for property,” Ms Fellows said.
It’s not a very bright strategy to compete on price in a duopoly. In fact it’s bloody stupid, as any good oligopolist will tell you. This only happens if and when volume becomes an issue, and clearly it is!
