Price guides may soon become mandatory to publish, according to regulation updates proposed by the NSW State Government as part of the nation-wide state government crackdown on underquoting. 

The NSW Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, stated that the need for tighter regulation regarding underquoting is paramount to restoring trust and improve transparency in the property industry.  

“By outlining our vision for clearer documentation and stronger penalties, we’re making it easier to hold agents accountable for underquoting.” He said, later adding “the proposed Statement of Information and advertising rules will help buyers make informed decisions and reduce wasted time and money – a win for consumers already struggling with cost of living pressures.”

The proposed changes focus on broadening transparency in how pricing is set and communicated with prospective buyers by mandating the disclosure of a ‘statement of information.’ This document would outline how the selling price was calculated and must include not only comparable sales, but also median prices for the suburb. The purpose behind it is to prevent buyers from being misled by inaccurate price guides and gives them ample opportunity to challenge prices that appear not to accurately reflect the industry. In addition, the inclusion of prices on listings would be mandated.

Penalties for underquoting would be increased from $22,000 to $110,000, or three times the agent’s commission (whichever is greater), and those in breach would have the details of their offences published. As NSW’s Real Estate licence register is public, breaches against licenced agents would be viewable to anyone who searched their name or licence number. Further penalties would also be introduced for agents who failed to meet their continuing professional development (CPD) requirements during the eligible period (1 July-30 June, annual).

These proposed changes come in the wake of Victoria’s recent tightening of their own regulations on underquoting. In a nation-first, Victoria has mandated the publishing of a price guide, including the vendor’s reserve, at a minimum of five days prior to the date of an auction. Opponents to these changes have warned they may result in a reduction of auctions in favour of ‘expressions of interest’ campaigns, where buyers submit their highest and best offer directly to the agent. This would mean they are effectively bidding blind, as there is no mandate for an agent to disclose opposing expressions of interest to buyers, and therefore transparency is actually being reduced.

However proponents of the changes note that auctions are the environment that drive up the price most, when compared to private sales. Victoria’s Minister of Consumer Affairs, Nick Staikos, said “Underquoting isn’t fair, and it’s young Victorians and families paying the price.”

The NSW government’s proposed changes are due to be introduced to parliament in the new year. If approved, they would likely come into effect in late 2026.