Hidden sale prices, underquoting in firing line under new property laws

Two of Australia’s largest property markets are preparing to introduce tougher rules for real estate agents, with both New South Wales and Victoria moving to tighten laws designed to combat underquoting and improve price transparency for home buyers.

While the measures differ in approach, both state governments say the reforms are intended to address long-standing complaints that misleading price expectations and hidden sale data are distorting the housing market.

Together, the reforms signal a broader shift toward stricter regulation of residential property sales.

Underquoting occurs when a property is marketed below the expected selling price in order to attract more potential buyers to inspections or auctions.

NSW targets underquoting with tougher penalties

In New South Wales, the state government has announced new laws requiring property listings to include a clear price guide, along with stronger penalties for agents who mislead buyers.

Under the proposed reforms, sellers and agents will be required to publish a price guide in all advertising, supported by a formal “statement of information” explaining how that price was determined. This documentation will include comparable recent sales and other market data used to justify the estimate.

Agents will also be banned from advertising properties at prices that vendors have already rejected, a practice regulators say can contribute to underquoting.

The new laws will significantly increase financial penalties for misconduct. Agents found to have underquoted could face fines of up to $110,000 or three times their commission, whichever amount is higher.

The reforms also introduce heavy penalties for “dummy bidding”, where fake bids are used to inflate auction competition.

The New South Wales government says the tougher rules are intended to ensure buyers have clearer information before attending inspections or auctions, particularly in a market where rapid price growth has heightened competition.

Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the reforms are a step forward in protecting home buyers from unscrupulous real estate agents taking advantage of a tight housing market.

“By significantly increasing penalties for underquoting, we are ensuring misconduct can no longer be written off as a cost of doing business, but as a meaningful deterrent.

“The changes will also empower NSW Fair Trading to tackle misrepresentations of property prices through stronger disciplinary action, better enforcement tools and improvements to mandatory education and professional standards.”

Victoria moves to end sale price secrecy

In Victoria, the state government is focusing on a different transparency issue: the widespread practice of withholding final sale prices from public listings.

Under proposed legislation, vendors and real estate agents will be required to publish the final sale price of residential properties shortly after a transaction becomes unconditional.

Currently, many listings are marked “price withheld” once sold, with official sale data often taking months to appear in public records.

Consumer Affairs Minister Nick Staikos said making sale prices public sooner would give buyers, sellers and agents a clearer understanding of market conditions.

Greater transparency around final sale prices is expected to help buyers better assess whether price guides are realistic and reduce confusion around auction outcomes.

The proposal is part of a broader push by the Victorian government to crack down on underquoting and improve information available to buyers.

Separate reforms already flagged would require reserve prices to be disclosed ahead of auctions, giving prospective buyers clearer expectations before bidding begins.

What the changes mean for buyers and agents

For buyers, the reforms are intended to reduce the uncertainty that often surrounds property pricing.

Mandatory price guides in New South Wales may help prevent buyers from attending inspections for properties that ultimately sell far beyond the advertised range.

In Victoria, earlier disclosure of sale prices could provide clearer evidence of recent comparable sales, a key metric used to estimate property values.

For real estate agents and vendors, however, the reforms introduce additional compliance requirements and increased regulatory scrutiny.

Industry groups broadly support greater transparency but have warned that the practical implementation of the new rules will be critical to ensure they improve confidence in the property market without creating unnecessary administrative burdens.