COLDWELL Banker JW Bermuda Realty yesterday denied gouging residents on real estate prices so its agents could take home greater commissions.

Progressive Labour Party MP Derrick Burgess last week laid the blame for the island's sky-rocketing property prices squarely on its shoulders, describing the international real estate franchise as "no good for Bermuda".

The Hamilton East representative told the House of Assembly on Friday that Coldwell Banker sold properties at high prices so that its agents could "make greater commissions". In the long run, he said, the island would suffer for the practice ? Bermudian college graduates and young professionals would take their talents abroad, where housing is more affordable.

According to Coldwell Banker JW Bermuda Realty's records for last year, the average price of all property transactions measured just under the $700,000 mark.

Included in the category were the sale of all single-family dwellings, vacant land, condominiums, commercial real estate, properties available to non-Bermudians, private transactions and properties sold with the assistance of real estate professionals.

And while figures of 30 years ago show three-bedroom homes available for $350,000, the average price of a single-family dwelling in 2003 was $865,000. The average price of a condominium was $615,000.

"The public should be aware of how the real estate agents are driving up the prices of housing," Mr. Burgess was reported as saying in . "This Coldwell Banker is no good for Bermuda."

The company yesterday expressed surprise that Mr. Burgess had chosen to make such comments in open Assembly, especially as they weren't based on fact. According to Kendra Mello, the company's corporate services manger, the cost of real estate here and elsewhere is determined by basic supply and demand principles.

"We were surprised by his comments in the House and we were saddened by the fact that this was the perception, particularly at that level of Government," said Ms Mello. "Bermuda's real estate market is affected by many factors.

"Like any other real estate market in a developed nation, it is a function of the economy of supply and demand. We, and when I say we I mean all real estate representatives on the island, not just Coldwell Banker, have spent years trying to educate the public about that ? as supply goes down and demand stays constant, prices are going to rise.

"I don't want to get into a slinging match with Derrick Burgess but I do think it is unfair that he targeted us. Just by virtue of the fact that we are one of the largest, and one of the leading companies in the market, if he was going to pick on someone I'm not surprised that he chose us.

"But I believe the real estate community in general is angered by his comments. Unfortunately, people are going to believe what he's saying and he chose not to consider the impact of those words."

She added that other factors in the economy also contributed to cost levels ? financial institutions are lending more, interest rates are lower and poor stock market performance had led many to invest in real estate instead of stocks.

"All of these things are impacting on the price of housing in Bermuda and around the world. It's not solely a Bermudian problem."

As Mr. Burgess had never contacted the company to discuss any concerns he had with its operations, Ms Mello said she could only speculate as to which of Coldwell Banker's practices Mr. Burgess felt was responsible for rising prices.

"(Maybe) he's referring to the level of professionalism which we apply to the business," she said. "Perhaps he has made assumptions because of the fact that we are affiliated with the global entity of Coldwell Banker. But what he negated to mention in the House, or even consider, is that all of the island's leading real estate companies have an international affiliation.

"Rego Realtors is affiliated with Knight Frank, The Property Group is affiliated with Sotheby's, we're affiliated with Coldwell Banker. This is the direction that the real estate industry has taken, not to drive up prices, but to improve the level of service to Bermudians; to have access to the knowledge and the tools that will allow us to fulfil our duty to our clients ? that is, to get the best price for them in the market as it stands. It's like any other business improving their marketing tools to improve service to their clientele."

Ironically, Ms Mello said, Bermuda's residents are faring better than those in many other communities attempting to buy homes. Citing statistics released by Total Marketing and & Communications Ltd. only this week, she said that the majority of the population ? 63 per cent ? have been able to purchase a home.

"You compare that to any other global area ? the US, Canada, England, wherever ? and I think you'd probably find that we're doing pretty well here in Bermuda. Those statistics are pretty impressive."