Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Underquoting

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Tim Heavyside was "doing the best possible job for vendor clients," RateMyAgent co-founder Mark Armstrong said in defence of the website's controversial naming of the underquoter as RateMyAgent's 2018 agent of the year.
"Underquoting works! That’s the reality," Armstrong said.
"To market a property effectively and auction it for the highest possible price, the agent must pitch the advertised price below the level they believe buyers will be prepared to pay in an openly competitive arena," he said.
The 2018 agent of the year winner, Tim Heavyside is a director of Fletcher &amp; Parker, which was slapped with a $880,000 penalty by the Federal Court last December.
The Federal Court judge pinpointed Heavyside as involved in 15 of Fletchers’ 22 proved underquoting contraventions which resulted in the state's record fine against an estate agency.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/23/heavyside.jpg" alt="">
The Federal Court ruling concluded Fletchers’ directors and sales consultants in its Canterbury and Blackburn offices acted with a "cavalier disregard for legal obligations that they well understood."
But RateMyAgent co-founder Mark Armstrong said in a blog that "like it or not, buyers have conditioned themselves to the practice of underquoting."
"Applying misleading and deceptive conduct provisions to the widespread pre-auction practice known as underquoting is fraught with problems," he said.
The website launched in June 2014. It recently launched into the US market.
The RateMyAgent Agent of the Year Awards are designed to recognise agents and agencies who provide excellent client service.
It’s based on the number of positive client reviews posted on RateMyAgent as a proportion of each agent’s total sales for the previous calendar year.
Armstrong noted the fine related to 22 of 2,004 available sales files over the period of investigation back in 2014–2015. 
"In other words, just one per cent of sales at Fletchers during that time incurred a fine," he said.
"The fines could cause a disproportionate level of misunderstanding amongst the public, when in fact Tim Heavyside and other agents are doing the best possible job for their vendor clients," Armstrong suggested.
"We now have the ridiculous scenario of two principles of consumer law working against each other.
"On one hand, a selling agent is contractually obligated to the vendor, not the buyer. 
"At the same time, putting the onus on agents to advertise the expected selling price gives them a de facto responsibility to advise buyers – a clear contradiction."
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jchancellor-FAypfDUnLy

Rate My Agent boss defends award to underquoter Tim Heavyside

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The Fletchers Balwyn-headquartered real estate agency has been fined $880,000 for underquoting on 22 properties in 2015, the strongest penalty ever for the outlawed practice in Victoria.
Justice Bernard Murphy said the size of the punishment ought deter other agencies from similar behaviour, which he described as widespread.
The 22 offences took place after Bradley Brown, the agency's chief executive officer, sent an email in 2014 to group sales staff informing them that Consumer Affairs had written to Fletchers seeking documents. He advised them to stay on top of their quote range, that in a rising market there was danger in underquoting and that Fletchers faced risks of large fines and bad press.
Fletcher and Parker (Balwyn) Pty Ltd was fined $40,000 for each underquoted property by sales representatives in its Canterbury and Blackburn offices in 2015.
At the time of the contravening conduct the maximum penalty for each contravention was $1.1 million.
Its leading agent Tim Heavyside was "involved" in 15 of Fletchers’ 22 contraventions, the judgement noted.
The Fletcher agency began in the then newly developing suburb of North Balwyn in the late 1930s.
The $880,000 penalty was reportedly more than double the commission it made from the sales, costing around one third of the company’s recent annual profit.
The Federal Court's Justice Murphy highlighted one sale where the seller of a Balwyn North property asked her agent why her house was marketed between $1.1 million and $1.2 million when the agency estimated it would sell for between $1.5 million and $1.65 million.
She was told the quote was low because “it brings in a broader market range” and "people with a low budget will often come up, and it will also catch the people with bigger budgets as well”.
The agency had a cavalier attitude to its responsibilities, Justice Murphy said. The evidence included the quote of the week at one 2015 sales meeting as “market the f— out of it and then underquote the shit out of it – good vendor management."
A sales agent Michael Richardson went as far as to acknowledge that “if [Fletchers] tell a buyer what (the vendor) actually want it destroys the campaign”.
Cristina Fotia, part of the sales team at Fletchers, sent an email to Blackburn office staff which included statements that: “A wise man once taught me when I first started real estate… “Quote them low watch them go” and “Safe to say we are doing a good job at it!!”;
One of the properties Fletchers sold was a three-bedroom house in <a href="https://www.realestate.com.au/sold/property-house-vic-vermont+south-120549605" target="_blank">Dorene Court, Vermont South</a> (below). It sold for $1.6 million in September 2015 after first hitting the market with an advertised guide of $900,000-plus.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/15/under2.jpg" alt="">
Another property in Monash Street, Box Hill South, sold for $1.731 million in May 2015 after being advertised for $1.1 million-plus (below). Fletchers advertised the property online on real.estate.com.au, in the Weekly Review magazine and in the Places magazine with a price quote of “$1.1 million plus”.
In the authority Fletchers based the estimated commission payable on the Box Hill South sale prices of $1.65 million and $1.75 million. Jacqui Versteegen, a member of the Fletchers sales team, sent an email to Fletchers’ sales and marketing group regarding the Monash Street Property and provided a price guide “POA (over $1.350M)”.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/15/underq.jpg" alt="">
Michael Richardson, an employed sales agent and auctioneer in the Fletchers’ sales team, advised the Monash Street vendor that senior staff from Fletchers’ Canterbury office believed potential buyers should be provided a price quote of “$1.25 million plus”.
Richardson said that buyers in Surrey Hills had been adding on $200,000-300,000 to an advertised sale price and that at a quoted price of $1.25 million plus Fletchers wanted buyers to think $1.45 million/$1.55 million. Mr Richardson said that was the best way to “get a record price”. He said that he wanted six bidders that were willing to bid strongly around that mark and the competition would push the price up.
Fletchers admitted misleading or deceptive conduct in relation to the sale of 22 properties in 2015, being properties situated at: 
(a)    6 Monash Street, Box Hill South;
(b)    2 Troy Court, Forest Hill;
(c)    8/842 Toorak Road, Hawthorn East;
(d)    9 Marina Street, Vermont; 
(e)    3 Gunyah Road, Blackburn North;
(f)    8 Polydor Place, Blackburn North; 
(g)    34 Moona Street, Burwood East; 
(h)    38 Bentley Street, Surrey Hills; 
(i)    9 Dorene Court, Vermont South; 
(j)    3/12 Arcadia Street, Box Hill South; 
(k)    4 Kitchener Street, Box Hill South; 
(l)    3/43 Glen Ebor Avenue, Blackburn; 
(m)    54 Linda Avenue, Box Hill North; 
(n)    46 Barter Crescent, Forest Hill; 
(o)    20 Gordon Crescent, Blackburn; 
(p)    307 Station Street, Box Hill South; 
(q)    2/15 Olympiad Crescent, Box Hill North; 
(r)    1/445 Mitcham Road, Mitcham; 
(s)    45 Tannock Street, Balwyn North; 
(t)    87 Stevenson Street, Kew; 
(u)    18 Lynden Street, Camberwell; and
(v)    3/12 Charlotte Street, Blackburn South. 
Victorian Consumer Affairs has agreed not to proceed in relation to Fletchers’ conduct in respect to the sale of three properties, situated at 33 Gray Street, Doncaster, 10/8 The Avenue, Windsor and 2 Bermuda Drive, Blackburn South.
The underquoting took place before new price guidance rules were introduced by the Victorian Government.
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j.ballantyne1990-6AQqhLzZaK

“Market the f— out of it and then underquote the shit out of it – good vendor management”: Fletchers sales quote

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The Doncaster office of the real estate agency Hocking Stuart has been fined $160,000 by the Federal Court for underquoting on property listings.
Hockingstuart Doncaster was ordered to pay the penalty, following an action brought by the Victorian Director of Consumer Affairs.
<div class="in-content-ad">The misleading prices occurred in advertisements published between June 2014 and December 2015 on nine offerings.</div>
<div class="in-content-ad"> </div>
<div class="in-content-ad">Justice Bernard Murphy it as “serious” and “plainly deliberate."</div>
<div class="in-content-ad">
The judge found their underquoting was widespread and a significant part of its sales strategy at the time.
It was intended to create the illusion of a bargain, Justice Murphy said.
“It involved the deliberate creation of an enticing, but illusory and misleading, marketing web for the sale of nine homes.
“The purpose of doing so was to attempt to generate a higher level of buyer interest in the property, in the expectation it would translate into a higher sales price.”
Hocking Stuart Doncaster’s defence that such practices were widespread in the industry.
Domain reported the franchise agreed it made the false representations and that it breached state and federal consumer laws.
The judge estimated the small business derived over $34,000 from the contravening conduct.
A Doncaster property advertised for more than $790,000 sold at auction for $1.01 million.
A Templestowe property, advertised at above $1.7 million after the owner signalled they wanted $1.8 million to $1.9 million.
<a href="https://www.realestate.com.au/sold/property-house-vic-templestowe-120292541" target="_blank">The home </a>sold for $2.04 million at auction.
The court ordered the agency keep records of price estimates for three years, publish a public notice advising consumers of their misleading and deceptive conduct, and review its compliance program.
It follows a fine of $300,000 imposed on Hocking Stuart Richmond for underquoting last year.
</div>
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Underquoting fine on nine Hockingstuart Doncaster listings

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ANZ has acquired the realAs website which exposes under-quoting among estate agents.
ANZ advised its purchase was to help home buyers access better information about the Australian property market.
RealAs was incubated in 2011 with an algorithm to predict property prices ahead of auction by the Melbourne buyer’s advocate David Morell, who claimed underquoting was “endemic."
"It’s grubby, it’s misleading and deceptive and it’s a fraud on purchasers," he said at the time.
RealAs says not all agents under­quote, but its chief executive since its 2014 launch, Josh Rowe said realAs aimed to "restore honesty" to pricing with its estimates.
The Collin Street based boss, who has been involved in the recent .au Domain Administration fracas, has long-viewed Victoria as "the underquoting capital of Australia."
In one expose he noted the hockingstuart Richmond agency was inaccurately quoting properties by 22 percent on average, ie a $1,000,000 agent quoted house would typically sell for $1,228,000, with Rowe subsequently advising the agency property price guidance had improved to 11 percent on average.
The website claims to have predicted prices within 5 percent of the eventual sale price over the 12 month period beginning September 2016 to August 17.
It recently advised the Sydney suburb of Eastwood topped the list for misquoting of property prices with underquoting being a way estate agents ­attracted bidders to an auction who assumed the price is within reach.
Melbourne’s Tullamarine was a close second.
Balwyn North ranked as the top suburb for accurate property price quoting in Melbourne and it was Blacktown in Sydney.
The REALas price prediction is calculated using the algorithm developed with RMIT University along with buyer feedback.
REALas.com will continue to operate independently as a wholly-owned subsidiary of ANZ.
The business was founded by David Morrell, who started the first buyers’ advocacy in Australia. He said the power was significantly stacked in the selling agent’s court and wanted to give buyers the ability to pay a fair price for their homes.
Morrell co-founded it with then Hawthorn Football Club president Andrew Newbold and former DDB creative director Jeremy Press.
It quickly upset agents and in 2015 Stockdale &amp; Leggo, a large Melbourne-based group of agencies, accused the property start-up of defamation.
The agency threatened legal action with lawyer John Gdanski, saying a televised report “had serious, reputational, commercial and legal repercussions for our client”.
“For the record, our client does not engage in the practice of underquoting property prices. Our client vehemently rejects this allegation,” it says.
RealAs chief executive Josh Rowe reportedly shrugged off the legal threat, saying it was baseless and symptomatic of an industry that was unaccustomed to scrutiny.
He noted he had not mentioned the firm in comments made for the report.
“Through our lawyers, we have rejected Stockdale &amp; Leggo’s allegations that we conveyed false, misleading and defamatory imputations about them,’’ he said.
“Stockdale &amp; Leggo’s attempt to mute a new voice for home-buyers will only reduce the trust home-buyers place in real estate agents.”
The site has 2900 followers on twitter, 4500 followers on Facebook and 150 followers on Instagram.
Commenting on the acquisition, ANZ Managing Director Customer Experience and Digital Channels, Peter Dalton said it was an important acquisition for ANZ's digital transformation.
"We know customers are increasingly turning to online resources for help as they navigate the Australian property market.
“It’s also a great success story of an Australian start-up, so we’re really pleased to be working with them and looking at how we might incorporate some of their features into ANZ’s products and services in the future.”
RealAs CEO Josh Rowe said he was thrilled that ANZ has recognised the value in what was built over the past six years.
Rowe said the deal had been in the works for a year as in mid-2016 they were looking for further investment from investors outside of the original group.
In 2014 when realAs won the Westpac Innovation Challenge it advised the site was getting about 10,000 unique monthly visitors, with half downloading the app.
</div>
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ANZ buys real estate honesty agitator, realAs

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Underquoting, or the illegal practice of understating property prices, by NSW real estate agents is up almost 50 per cent this year, according to NSW Fair Trading.
There were 38 penalty infringement notices for underquoting issued by Fair Trading in the first eight months of the year, compared with 26 for the whole of 2016. 
There is a fine of $2,200 for each infringement.
In NSW, agents cannot give consumers understated or vague property prices, including "offers above" a certain value. They must also provide Fair Trading officers – if asked – with appropriate documentation to show that they have complied with the new laws.
But some agents have found a way out by not quoting a price at all in their advertising and instead verbally underquoting the price when asked.
The new laws were introduced in NSW last year, while Victoria followed suit in May this year.  
Sydney estate agent Edwin Almeida, who regularly calls out dodgy practices on social media, said underquoting was widespread in Sydney.
He provided Fairfax Media with anecdotal examples. 
A home in Kellyville with a price range of $1.35 to $1.4 million was passed in at auction. Almeida cited the neighbour of the house told him the owner wanted $1.45 to $1.5 million. 
For another property in Blacktown, Almeida said the agent had given him a price guide in the mid-$800,000s when the owner had told him he was expecting more than $1 million.
"It's not so much a problem with new people entering the industry, but its the 'old dogs' with their 'price it low watch it go' approach who are doing it," Almeida said.
However, Fair Trading figures also show that public complaints alleging underquoting have slid sharply to 34 for the year to date from 216 last year.
"The number of reports received about underquoting has steadily declined and both consumers and industry participants have welcomed the [rule] changes," a spokeswoman for Fair Trading said.
"Fair Trading conducts regular inspections of real estate agencies as part of targeted and random compliance programs or in response to specific complaints to ensure compliance with the legislation."
 
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Underquoting up 50 percent, NSW Fair Trading figures show

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Melbourne real estate agencies — JRW Property Investments and Barry Plant Glenroy — have been found to be underquoting by a Victorian taskforce, after the new laws on such practice came into force on May 1. 
JRW Property Investments and Barry Plant Glenroy acknowledged they violated consumer and property laws relating to house sales after investigations by Consumer Affairs Victoria, its website said in a release.
Taskforce Vesta, which conducted the investigations, was formed in 2015 to address concerns about agents misleading prospective buyers about the likely selling price of a property.
The final two active investigations concluded with Consumer Affairs Victoria accepting enforceable undertakings from JRW Property Investments Pty Ltd (ACN: 122 029 725) and Superior Realty Pty Ltd – trading as Barry Plant Glenroy (ACN: 098 225 248).
JRW Property Investments and Barry Plant Glenroy will contribute $75,000 and $45,000, respectively, to the Victorian Consumer Law Fund, for misleading and deceptive price advertising, including underquoting.
Both companies have also agreed to implement a compliance programme and display a public notice at their respective company offices.
The taskforce inspected the offices of 34 selling agents, and examined 1,400 sales files, leading to 14 major investigations, Consumer Affairs Victoria said.
The changes to the Estate Agents Act 1980 requires estate agents or agents' representatives selling residential property to set an estimated selling price that is reasonable and takes into account the prices of the three most comparable property sales in the area.
The agents must “consider the standard, condition and location of the property and the date of sale, when selecting the most comparable property sales” says a note on the Consumer Affairs Victoria website.
They are also required to inform the seller and update the sales authority if the estimated selling price changes.
The underquoting investigations have led to the commencement of six cases in the courts and tribunals, and the acceptance of six enforceable undertakings.
The penalties for underquoting can be more than $31,000 and loss of sales commission.
The new laws will only apply to properties for which the seller signs a sales authority on or after May 1.
JRW Property International advertised a Glen Waverley property for $800,000 despite the estimated selling range being $950,000 to $1.045 million, reported the Herald Sun. 
The agency also told prospective buyers in Wheelers Hill a property was expected to sell for about $1.1 million despite the vendor asking for a reserve price of $1.5 million.
Barry Plant Glenroy’s breaches included a Meadows Heights property advertised at $450,000-plus despite the vendor nominating a reserve price of $500,000.
Also, a Broadmeadows property advertised at $300,000-plus despite the vendor not being prepared to sell beneath $340,000.
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Two Melbourne real estate agencies face the music for underquoting 

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Victoria will bring into force underquoting laws from May 1 as a measure to bring more transparency into property transactions and crack down on dodgy real estate agents.
The changes to the Estate Agents Act 1980 will require estate agents or agents' representatives selling residential property to set an estimated selling price that is reasonable and takes into account the prices of the three most comparable property sales in the area.
The agents must “consider the standard, condition and location of the property and the date of sale, when selecting the most comparable property sales” says a note on the Consumer Affairs Victoria website.
They are also required to inform the seller and update the sales authority if the estimated selling price changes.
Potential buyers will receive a statement of information that has an indicative selling price, which must not be less than the estimated selling price or the seller's asking price, or an amount already rejected by the seller, which is essentially underquoting.
The statement must also have details of the three most comparable property sales and the median house or unit price for the suburb.
Agents have also been directed to advertise properties with a single price or a price range that does not exceed 10 per cent.
In addition, they cannot also use qualifying words or symbols, such as 'from', 'offers above', or '+', when advertising a price or price range.
Advertising needs to be updated as soon as the seller rejects a higher written offer to buy the property, says CAV.
The penalties for underquoting can be more than $31,000 (200 penalty units) and loss of sales commission.
The new laws will only apply to properties for which the seller signs a sales authority on or after May 1.
The changes come amid recent action against erring real estate agents by the regulator through its Taskforce Vesta operation.
Hocking Stuart’s Richmond office was fined $330,000 and ordered to pay up to $90,000 in costs in October for underquoting on 11 properties.
Similarly, CAV also lodged claims against Hockingstuart, Doncaster agency for alleged underquoting. Victoria’s consumer watchdog alleges the Hockingstuart agency underquoted on nine properties in legal action launched against the office late last year.
Legal action was launched against Fletcher &amp; Parker, Balwyn, in December for alleged underquoting on 25 properties — the largest amount under the current crackdown.
Manningham Property Group, trading as Hocking Stuart, Doncaster, and its directors Kenneth John Chappell and Anastasios John Adgemis, have also fronted court over nine homes.
Former REIV chief executive officer Geoff White had said earlier that the changes would create a more transparent market, providing clear information to all stakeholders.
“A key objective of the new laws has been to ensure that they are effective in a rising or a falling market, and we believe they have delivered on this objective," he said. 
Real Estate Institute of Victoria president Joseph Walton was cited by www.realestate.com.au as saying that the body had worked with the Victoria government to develop the legislation.
“The REIV and Consumer Affairs Victoria have commenced delivery of detailed information to agents to streamline the introduction for agents across Victoria,” he said.
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Victoria underquoting laws start May 1

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Village Real Estate, which has offices in Seddon and Newport in Melbourne's inner west, have been found to have breached consumer law after being investigated by Consumer Affairs Victoria (CAV) for underquoting the advertised price of a property.
Marty Rankin, a director of Village Real Estate has spoken candidly about the underquoting.
The worst example was a <a href="https://www.realestate.com.au/sold/property-house-vic-seddon-121648866" target="_blank">Seddon property</a>. 
The three-bedroom house was advertised for as low as “$770,000 plus” in January last year, despite agents having already rejected a private offer of $900,000 the previous month.
The vendors had also been advised they would not consider anything below $950,000.
<div>During the auction marketing campaign he advertised price was revised to “$800,000 plus”.</div>
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<div>Auctioneer Huss Saad announced to bidders they were “playing for keeps” — suggesting it had reached its reserve price — when the bidding reached $950,000.</div>
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<div>It sold under the hammer for $995,000.</div>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/27/25%20Pilgrim%20Street.jpg" alt="">
Village Real Estate have resolved to implement changes in line with the new forthcoming regulations in addition to instilling company best practice policies to amend the whole property pricing process.
“We hold ourselves accountable for our actions.” said Mr Rankin. 
“We are not proud of the incident," he said.  
“Ultimately, if representatives of the industry cease trying to compete with other agents to irresponsibly promote properties with misleading price ranges, then all buyers and sellers will enjoy a more open and honest transaction."
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Seddon auction underquoting prompts Village Real Estate to review property pricing process

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A Croydon estate agency will contribute $45,000 to the Victorian Consumer Law Fund, after acknowledging contraventions of Victorian consumer and property laws relating to property sales.
The Director of Consumer Affairs Victoria has accepted undertakings from O'Brien Real Estate Croydon Pty Ltd (ACN 150 146 008) and its sole director, Mr Jerry Caleca, for making false or misleading representations about the sale price of a number of properties.
"We commenced an investigation after receiving a complaint alleging that an agent's representative at the company was misleading potential buyers by advertising a property at a price that was less than the vendor's price.
"We found that seven properties in Croydon, Mooroolbark, Chirnside Park and Wonga Park were advertised with a price range lower than what was listed as the vendor's price on the sales authority.
"We also found that four of the properties were advertised at a price that was less than the agent's estimated selling price."
Consumer Affairs Victoria considers that the company has engaged in conduct that was misleading and deceptive, or likely to mislead or deceive, and has contravened the Australian Consumer Law (Victoria).
O'Brien Real Estate acknowledged that it had contravened sections of the Australian Consumer Law (Victoria) and the Estate Agents Act 1980.
As well as the $45,000 contribution to the Victorian Consumer Law Fund, Mr Caleca, 49, of Croydon Hills, offered an undertaking that at its own expense, the company will:
<ul>
<li>establish a compliance program within three months of the undertaking, and maintain the compliance program for three years. Mr Caleca must also provide our Director with a signed affidavit verifying that the compliance program has been implemented</li>
<li>display a public notice stating its contraventions:</li>
<li>on the company website (www.methven.com.au), and</li>
<li>at or near the reception desk of each of its existing or new premises from which the company carries on real estate services.</li>
</ul>
This public notice will be displayed within 14 days of the undertaking and remain displayed for three months.
This enforceable undertaking will be in effect for three years.
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Croydon's O'Brien Real Estate pays $45,000 fine for underquoting

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Twenty formal warnings have been issued to Victorian estate agents as a result of a recent review, with 13 continuing investigations into underquoting at agencies across the state currently underway.
“Consumer Affairs Victoria is determined to level the playing field for Victorian home buyers,” Consumer Affairs Victoria director Simon Cohen said.
Victoria has seen court action with agency Hocking Stuart last month ordered to pay $330,000 for “serious” underquoting.
Legislation has been passed by the Victorian Parliament that will force agents to give greater context around how they reached an estimated sale price, including using at least three comparable sales as a reference point for advertising the estimated price.
A survey by Consumer Affairs Victoria as part of its 12-month review into real estate agent underquoting found a quarter of the properties sold for between 10 and 20 percent more than their advertised estimated price.
Taskforce Vesta reviewed 200 Victorian properties from first listing to sale over the past year, and 63 percent of them sold for above the estimated price.
Some 30 percent of properties sold for between 0.1 and 10% above the estimated price; 26 percent sold for between 10.1 and 19.9 percent above the estimated price; and 7 percent sold for 20 percent or more above the estimated price.
The findings led the consumer watchdog to review 1400 files at 34 real estate agents across the state, SmartCompany reported.
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