NSW Tightens Property Regulations: Price Guides to Be Mandatory — Sydney Auction Clearance Rate at 61%

Weekly Market Focus

The New South Wales government is set to introduce new property market regulations that will require sellers to disclose a price guide in all advertising, while imposing tougher penalties on agents engaging in underquoting. Under the proposed legislation, real estate agents who breach the rules could face fines of up to AUD $110,000 or three times the commission received, whichever is higher. The bill is expected to be introduced to Parliament this week.

Under the new rules, agents must include a price or price range in all property advertisements, along with comparable recent sales and the suburb’s median price. Agents will also be prohibited from quoting prices below a written offer that has already been rejected by the seller, or below the highest bid made at auction that did not result in a sale. The reforms are aimed at curbing long-standing underquoting practices and improving market transparency.

Previous media investigations found that nearly half of auctioned properties in Sydney sold for more than 10% above the quoted price, leaving many buyers spending significant time and money on due diligence, inspections and bidding, only to find the final sale price far exceeded their expectations. However, the proposed laws still do not require vendors to disclose their reserve price, nor do they mandate that it align with the advertised guide — an issue that continues to draw debate.

Under the new regulatory framework, penalties for dummy bidding will also double to AUD $110,000, while enforcement powers of NSW Fair Trading will be expanded. These include the ability to require offending agents to publicly acknowledge misconduct or have property prices reassessed by an independent valuer. Agents who fail to complete mandatory professional training may also face penalties.

Last Week’s Auction Results

Sydney: A total of 1,308 properties were taken to auction, with results reported for 817 properties. Of these, 495 were sold, resulting in a clearance rate of 61%. The total auction value reached AUD 503,644,643, with a median price of AUD 1,544,000.

Melbourne: A total of 1,324 properties were taken to auction, with results reported for 979 properties. Among them, 594 were sold, achieving a clearance rate of 61%. The total auction value amounted to AUD 444,316,118, with a median price of AUD 960,000.