The NSW Government has passed new legislation aimed at increasing transparency in the property market by tackling underquoting and strengthening protections for homebuyers.
The reforms, passed by Parliament this week, will require all residential property advertisements to include a price or price guide. Real estate agents will also be required to publish a statement of information featuring comparable sales and the suburb’s median sale price to help buyers better understand how asking prices are determined.
Under the new laws, agents must keep advertised prices up to date throughout a sales campaign. Price guides cannot be lower than a previously rejected written offer or the highest unsuccessful bid at auction. Penalties for underquoting and dummy bidding have also been significantly increased, with fines for dummy bidding doubling from $55,000 to $110,000.
The changes are intended to create a fairer and more transparent property market, although the exact commencement date is yet to be confirmed while the Government undertakes consultation on implementation.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the reforms would prevent buyers from wasting time and money by ensuring advertised prices more accurately reflect market expectations.
The legislation brings NSW closer to transparency measures already in place interstate, although approaches differ. Victoria requires agents to publish a statement of information with indicative pricing based on comparable sales and is considering requiring reserve prices to be disclosed before auctions. Queensland, by contrast, prohibits price guides for auction properties, allowing only comparable sales information with the vendor’s approval.
While industry representatives support providing buyers with better information, some have questioned whether the reforms adequately consider vendors’ interests. Real Estate Institute of NSW CEO Tim McKibbin said sellers are also entitled to seek the best possible price and argued that property values are difficult to standardise because every home is unique and influenced by changing market conditions.
The NSW Government says the reforms are designed to improve honesty and confidence in the buying process while helping buyers make more informed decisions in a competitive housing market.
