The flat housing market which has gripped much of the country for the past two years has taken its toll on real estate companies in the southern region.
Figures from the New Zealand Real Estate Agents Authority showed in the year to November 16, 2011, eight real estate companies in Otago and Southland suspended their licences, and 88 companies nationwide had suspended their licences as of November 30, 2011.
There are 65 active company licences in Otago and Southland at present - 836 nationwide.
The licences allow companies to operate as a real estate agency, and at least one officer of the company must hold an agent's licence as an individual.
Real Estate Institute of New Zealand southern area spokeswoman Liz Nidd said the suspensions were mainly due to mergers and company director retirements.
In Wanaka alone, Mrs Nidd said she was aware of five real estate companies merging into two, and a smaller-scale merger had taken place in Dunedin.
"The market has had an effect on real estate companies.
"They've seen an opportunity to reduce overheads in what has been a difficult market."
Former REINZ Otago branch president Stephen Johnston said real estate licences were expensive to keep current, and many with licences who were not working in the industry at present were suspending them to keep costs down.
As of January 1, 2011, levies for licence holders were set at nearly $700 per annum. The annual fee for a suspended licence is $109.25.
Despite some real estate companies merging to cut costs, one Otago company is expanding.
Hoamz Otago Ltd has applied to the REAA registrar for an agent's licence to operate in Mosgiel.
Hoamz director Stephen Hebbend, of Invercargill, believed there had been a lot of growth in the Mosgiel market recently, and predicted a lot of future growth.
"We are testing the water, you could say. We will start quietly and build from there."
