NSW and Victoria governments crack down on property underquoting and price transparency reforms

Consensus Summary

NSW and Victoria governments are implementing sweeping reforms to combat property underquoting and improve price transparency in their housing markets. In NSW, new laws will significantly increase fines for underquoting—from $22,000 to $110,000 or three times an agent’s commission—and mandate price guides on all property ads. Agents will also be barred from advertising prices lower than previously rejected offers, with dummy bidding penalties doubling to $110,000. NSW Fair Trading will gain stronger enforcement powers, including mandatory public disclosure of breaches or independent price verification. Investigations by the Sydney Morning Herald and The Age revealed that nearly half of Sydney property sales exceeded advertised price guides by over 10%, with 16% selling 20% above, highlighting systemic issues of misinformation. Meanwhile, Victoria will ban ‘price withheld’ listings, requiring sold property prices to be publicly disclosed by 2027, a move supported by consumer groups but criticized by opposition leaders for lack of detail. Victoria also plans mandatory building and pest inspections for buyers, though implementation timelines and costs remain unclear. While both states aim to curb unscrupulous agent practices, contradictions exist over timing (e.g., Victoria’s auction disclosure deadlines) and specific enforcement mechanisms, particularly around reserve price transparency and fuel supply assurances amid global instability.