Purplebricks fees rise up to 33 per cent In Australia

Purplebricks has increased its charges in Australia by up to 33 per cent.

The Australian Financial Review reports that the 33 per cent hike - in Victoria - comes as the market in the state’s capital, Melbourne, is cooling.

Vendors in the state using the agency now pay Aus$5,999 to market their home compared with $4,500 when Purplebricks launched in Australia in September 2016.

Taking their home to auction, will take the total Purplebricks fee to $7,369 compared with $5,870 previously.

In Queensland and South Australia the agency has increased fees 11 per cent to $4,999 from $4,500 ($6,369 if auctioned).

In another state, New South Wales, fees have increased 10 per cent to $5,999 from $5,500 with an auction taking the fee to $7,369.

The AFR says the additional revenue will fund back office improvements.

The AFR also says Purplebricks did not advertise the increases in advance and they come “despite [global] chief executive Michael Bruce saying the Australian business was performing ahead of targets when interim results were published in London in December.”

The article - which is behind a paywall - quotes an independent Australian estate agency as saying in parts of Sydney agents charge one per cent commission, meaning that on a $600,000 home they are charging $6,000 - the same as Purplebricks, but only on a successful sale rather than as an up-front fee.

The AFR says latest figures from Purplebricks show that revenue from its Australian business surged to $11.9m during the six months to the end of last October.