Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Trade Me will probably lure back real estate listings

Trade Me will probably lure back real estate listings from rival after backing down on fees

By Tina Morrison

July 31 (BusinessDesk) - Trade Me Group, New Zealand's largest auction website, will probably lure back real estate listings from its rival realestate.co.nz after yesterday backing down on a 10-month push to hike fees under a new structure, an analyst says.

The Wellington-based company's shares have shed 24 percent since October last year, lagging a 9 percent gain in the benchmark NZX 50 Index over the same period, when the company tried to boost revenue by shifting all real estate agents onto a fixed fee-per-listing structure from a capped monthly subscription plan. Trade Me backed down on the plan yesterday following resistance from some agents, and will now offer either a lower fee per listing or a higher capped monthly plan.

"We think Trade Me's revised fee structure is a necessary back-down in the face of strong agent opposition and will result in a recovery in listing volumes," Stephen Ridgewell, an analyst at Craigs Investment Partners, said in a note. " Agents reverting to the monthly subscription fee - which we think will be most agents - will be incentivised to place all their listings on Trade Me. This should lead to a recovery in Trade Me's market share of listings."

Trade Me's share of listings has fallen to 84 percent of the total listings of industry-owned competitor realestate.co.nz from 87 percent in June, Ridgewell said.

Still, an improvement in the volume of listings will likely be offset by a fall in average yield, leaving the brokerage's overall forecasts for Trade Me's property revenue relatively unchanged, Ridgewell said.

In the year ended June 30, Ridgewell expects a 20 percent rise in Trade Me's property yield to be offset by a 6 percent reduction in volume, resulting in a 14 percent gain in property revenue to $26.5 million. Trade Me will report its 2014 earnings Aug. 20.

For 2015, Ridgewell is forecasting a 12 percent gain in yield to be offset by a 4 percent decline in volume with property revenue up 8 percent to $28.5 million.

Shares in Trade Me touched $3.36 in intraday trading today, their lowest level since April 2012. They recently traded at $3.44.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news