Trade Me's backdown in pricing for real estate agents was
strategically the right move, Craigs Investment Partners
broker Chris Timms said yesterday.
Trade Me has added a monthly listing subscription fee option
for realtors after some agents baulked at the online auction
site's move to pay-per-listing fees.
The $1399 monthly subscription offer for Auckland, Wellington
and Christchurch-based listings, and $999 for elsewhere, came
after some real estate agents boycotted the listed
Wellington-based company's move to a $159 pay-per-listing
charge last year.
Businesses that stick with the pay-per-listing model will pay
only $99 if the house is valued below $450,000.
Mr Timms said most agent offices would be better off with the
''all you can eat'' plan, encouraging agents to place all
their listings on Trade Me.
''We expect Trade Me's listing volumes to recover over the
balance of 2015, which will offset weaker yield.''
Craigs' target price for Trade Me shares remained unchanged
at $4. The key risks were execution and competition, he said.