New legislation proposed by the NSW Fair Trading signals a strong-move to restore confidence in Australia’s property market by targeting misleading price practices among agents. Under the reforms, property advertisements must clearly display a price or price guide, and agents who engage in “underquoting” might face fines up to AU $110,000 or three times their commission, whichever is greater.
You may wonder why this matters beyond typical regulation. The tactic of listing low price guides to attract more bidders has eroded trust, led to wasted time for buyers and undermined transparency in what is already one of the world’s most competitive real-estate markets. By requiring agents to publish a “Statement of Information” explaining how they arrived at an estimate, based on genuine comparable sales and median values, the reform addresses the root of the problem: asymmetric information.
For professionals operating in property, investment or financial services, the implications are clear. First, valuation accuracy and documentation will become operational essentials, not optional extras. Second, agents and firms now must adjust how they communicate and price properties – those who don’t risk reputational impact or regulatory sanction. Third, investors and lenders must reconsider assumptions around pricing transparency: the reform may slow rapid sales-cycle schemes or speculative upward price movements as the market adjusts to greater disclosure.
In sum, this legislative push is more than consumer protection – it is a structural shift in how value is signalled and verified in the property ecosystem. Companies and professionals that adapt – by upgrading their pricing systems, tightening controls and openly publishing reasoning – can gain a competitive edge. Those who treat old habits as benign may find themselves facing both financial and reputational consequences.
