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

<html><body>
There has been a bit of talk in The Age recently with two articles on underquoting.
Generally speaking The Age’s Alice Stolz – ‘Underquoting needs to be addressed’ (May 2) seems to be most on the money as far as buyers are concerned.
My thought is: let’s reduce the emotional heat in the argument and drop the word underquoting and call it agent ‘step quoting’, as we do.
Why?
Because many agents are not really lying. What they are doing is informing buyers of a number, in a way that best represents their clients’ interests, which are not necessarily the same as your interests if you are a buyer. (Even if you feel they are lying, responding with anger and bad emotions are not always helpful in good buyer decision making.)
So, step quoting from agents is mainly about buyers not understanding what the agents quote really is, and what it isn’t.
Remember that an agent quote:
<ul>
<li>Is a number designed to get you the buyer to visit the property – nothing more. 
</li>
<li>Isn’t a cast iron guarantee of what the property will go for, or indeed what the seller will definitely sell for.</li>
</ul>
Our article on step quoting may be worth a read if you are a buyer and  want to reduce quoting angst by understanding <a href="/expert-insights/investing/a-smart-buyers-guide-to-step-quoting">how agent quoting really works</a>.
Another article in The Age titled: “Underquoting not a big problem” (also May 2), was, we felt, unhelpful if buyers perceived that agent quoting wasn’t a real issue because Consumer Affairs Victoria (CAV) hadn’t received many substantiated complaints.
To us that’s a bit like assuming the chickens are happy with the RSPCA endorsement of chicken meat in supermarkets because there are few complaints. In other words, just because formal CAV complaints are low, this does not necessarily mean that agent quoting is not a problem with buyers. All it may mean is that very few buyers want to go through a formal process of complaining – i.e., what’s in it for them, it’s hard to prove and the government has done little in the past.
In our opinion there is no link between the number of CAV complaints and the level of buyer unhappiness and confusion on agent quoting.
However, this is not an agent bashing exercise. While some have been the cause in the past, all can actually be the solution in the future if they want to be – so let’s keep it civil.
Agents across the board have to want to fix the quoting issue and currently there is no consensus to do so.
Agent quoting is a real and significant problem for buyers because:
<ol>
<li>Many buyers do not understand what the agent quote is actually saying. 
</li>
<li>The agents also do not have a consistent view as to what the agent quote is saying. Is the agent quote an agent guess, a seller reserve, a buyer estimate, or what? This creates much confusion. 
</li>
<li>The agent body, the REIV (of which we are members), has only made a lukewarm attempt to address this issue. In fact they shut down their ethics committee a couple of years ago (I was on it at the time) and little has been heard on agent quoting since. 
</li>
<li>The government has not successfully legislated to make the agent’s quote consistent and easily understood by the public.</li>
</ol>
All four of the above (buyers, agents, REIV and the government) need to be on the same page for anything to work.
The Queensland solution, as we understand it (and we may not fully), of removing all quoting appears to be an attempt to do the right thing. But it appears poorly conceived, impracticable and unpoliceable.
At some stage an agent will have to say a price. He or she is a conduit between buyer and seller and price is an unavoidable discussion point. At some stage, whether formally or informally, the buyer will say “give me an idea on price” and the agent will have to respond. We can’t see how that can be made illegal. But we may not know all the facts on the Queensland solution.
Buyers, sellers and agents all have rights and obligations in the matter of quoting; just like tradesman, Myer and petrol stations do when they are quoting.
One option is that the agent auction quote range (say $3 million to $3.5 million) must include the reserve in it at all times – irrespective of the timing of the quote. Rather than adjust the range during the campaign – just make it bigger.
If two buyers force the price beyond the range to, say, $3.8 million then so be it. That is market forces and no agent can predict that every time (ourselves included). But an ethical and skilled buyer or seller agent can get the range estimate right between 80% and 95% of the time (as we do), depending on the type of market we are in.
If a seller doesn’t want that range estimate restriction then they shouldn’t don’t use the auction process; they could use the EOI (expression of interest) and boardroom process instead.
If a buyer wants more pricing information then they need to do their research and either engage an independent buying professional or educate themselves somehow.
Finally the government and the REIV could be running a “real life and accurate” education campaign to explain what an agent quote is and what it is not. They make a lot of money from stamp duty and could put a little bit back.
Private sales and EOIs also need some attention. Nothing complicated, just a few simple rules around processes.
Auctions can be very transparent buying processes when run ethically for all parties, and they are part of Melbourne’s societal fabric. We should want to enhance what we have, not just complain about it.
Auctions are great!
Mal writes weekly auction reports, advice and in-depth market analysis on <a href="https://www.jamesbuyeradvocates.com.au/" target="_blank">James' website</a>.
</body></html>

maljames-vHwm28JUAa

We need to enhance the auction system, not just complain about it

<html><body>
Discussing the issue of the potential price guidance ban in Queensland, the Real Estate Institute of New South Wales president Malcolm Gunning expressed his support for a recent petition for agents to publish reserve prices a week out from auction.
The <a href="/expert-insights/buying/louis-christopher-and-patrick-bright-say-media-outlets-are-ignoring-underquoting-petition">petition, from EPS Property Search's Patrick Bright</a>, looks to increase transparency by requiring real estate agents to publish the reserve prices to the public.
Gunning told Property Observer that he doesn't support the banning of price guides in Queensland, believing that they're "trying to exonerate the responsibility of under or over quoting". Just today, Property Observer reported that the Real Estate Buyers Association of Australia believe that <a href="/expert-insights/buying/coercion-will-be-rife-under-new-queensland-price-guide-laws-rebaa">coercion will be rife if the changes go through</a>.
With Brisbane labelled one of the upcoming investment hotspots, he also expressed concern for buyers in New South Wales and other states and territories who would be heading to the south-east Queensland suburbs for purchasing, unaware of what prices could be attained, where a local might be more familiar.
"In NSW, the institute uspports the agent giving an indication. Agents are dumb when they [underquote]and have no confidence in their ability," said Gunning.
In fact, he pointed to education being the real issue for New South Wales instances of underquoting.
"We think the problem is that in New South Wales the level of entry into real estate is the lowest in Australia and we think that [when agents underquote it is] reflective of agents not being confident in themselves."
He noted that in the last 18 months it has been difficult for agents, particularly those with little confidence in appraising a property, to provide an accurate price guide, with buyers getting desperate to purchase and chasing the properties beyond market expectations.
However, he said, the agent should be able to give a purchaser an indication of the vendors expectation, and perhaps mention the level of competition. If a buyer wants to compete at auction with other bidders, then this is their decision, however they should not be competing with a reserve price set higher than expectation.
Gunning expressed his support of John McGrath, who has been actively against removing the price guidance.
Despite the opposition, however, it might go through.
"The REIQ are supporting it, and they’re a strong organisation, so I think the government might pass it," he said.
He also told Property Observer that he has recently spoken with the Office of Fair Trading who have said that underquoting is not as high on their agenda as looking to knock out dodgy Registered Training Organisations.
"There are a lot of training organisations offering sub-standard training, we’re trying to lift the standard of the industry. We’re getting people coming in with just a week of training," he said.
He noted that the better agents who do not fall into underquoting tend to be those with higher levels of education.
</body></html>

jduke-EHk3XBmHkn

REINSW's Malcolm Gunning supports early publishing of reserve prices

<html><body>
Underquoting has received a lot of air time on Property Observer recently, and it's starting to make its way through mainstream media as well.
With <a href="/news/online-petition-for-mandatory-reserve-price-publishing-launched">a recent petition from Patrick Bright, asking for reserve prices to be published to solve this problem</a>, seeing an uptick in signatories it's clear that we're only going to hear more about the issue.
Here are six things you should know about this topic.
<ol>
<li>
It's often referred to as 'bait pricing'  Underquoting is often referred to as 'bait pricing', in the sense that it baits buyers by suggesting they may be able to snap up a bargain. 
</li>
<li>
It is unlawful, and is attracting official scrutiny  Underquoting is not a legal, or ethical, practice, and recently has had <a href="/news/misleading-auction-price-advertising-to-be-targeted-by-consumer-affairs-victoria">Consumer Affairs Victoria pledge to look more deeply into the issue</a>. However, they are not the first official body to try looking into the practice. Previously, Fair Trading has also apparently conducted an investigation. 
</li>
<li>
The frequency of underquoting is hotly debated  There have been no official estimates, and industry bodies, and members, argue that it's anywhere from infrequent to every agent but a few. It appears this cannot be agreed upon. Property Observer has <a href="/news/qld/letter-from-the-editor-more-information-not-less-please-queensland">regularly asked experts about this issue, with very little consensus</a>. In our exclusive, we <a href="/news/take-that-price-guide-with-a-grain-of-salt-underquoting">asked a number of experts 'Is underquoting an issue we should be focussing on? If yes, how should we go about addressing it?', you can see all their answers here</a>. 
</li>
<li>
Buyers lose out financially  While some will argue that a buyer will not bid beyond what they can afford, and one would hope this is true, buyers will lose out financially if they believe they have a chance of achieving the property at the lower price. Pest and building inspections, solicitors fees and the cost of their own time attending open homes and researching a property - these are all costs that a buyer will have to foot the bill for, without any chance of achieving the home. 
</li>
<li>
Queensland is so concerned about underquoting that they're considering losing price guides completely  One of the most discussed stories in the industry over the past few months has been Queensland's potential removal of price guides, which the <a href="/news/nsw/real-estate-institutes-go-head-to-head-over-queensland-auction-price-guide-debate">Real Estate Institute of Queensland's Anton Kardash has noted is to avoid 'such complaints' that are rife in 'other states'</a>.  “We all know that by advertising a price guide or giving an indication of the reserve price, an expectation may be set at a level that is too high or too low and this may impact on the outcome of the auction,” he said.  “It is with great pride that Queensland can say that it has largely avoided claims of misleading and deceptive conduct in relation to property price guides. Unlike in some other states where such complaints are rife, Queensland has not been subject to constant complaints of such a nature and will continue to prevent any future issues with the passing of this legislation.” 
</li>
<li>Underquoting might not even get vendors the best price</li>
</ol>
While the phrase 'Quote it low, watch it go' and variations have regularly been used to explain why real estate agents use bait pricing, it's interesting to see this in practice. At a recent auction, where underquoting was suspected, the auction actually achieved less than an earlier private treaty offer through a different agency.
If the buyers that attend cannot afford the true price the vendors want, then it's not the right crowd at the auction. All that happens is that a lot of people show up, which makes the agent look like they're doing a great job, however they are people who may not necessarily have deep enough pockets.
YOU MAY ALSO WANT TO READ Mark Armstrong's <a href="/expert-insights/investing/underquoting-the-clear-and-transparent-solution">Underquoting: The clear and transparent solution</a>
Room for debate: <a href="/expert-insights/investing/room-for-debate-are-melbourne-agents-underquoting">Are Melbourne agents underquoting?</a>
</body></html>

Six must know facts about underquoting

<html><body>
The proposed Queensland price guide ban is back on the radar, with a number of industry members speaking out in support of the legislation.
For those who are not aware of the potential changes, you can<a href="/news/new-queensland-legislation-to-leave-buyers-without-price-guides-reinsw"> see the passage in the legislation that has caused the outcry in this article here</a>.
Damian Hackett, CEO of Place Estate Agents, has said that banning the price guides will not make a significant change from what is currently in place, and will improve the professionalism of the real estate industry.
In fact, said Hackett, putting a price guide on an auction is contrary to its intended purpose – to let the market determine the final value of the property.
<blockquote>
DEBATE POINT: Is putting a price guide on an auction contrary to its intended purpose?
</blockquote>
“The notion of putting a price or a price range on a property going to auction is the reverse of what the process is trying to achieve,” he said.
Director of Place, and <a href="https://www.reiq.com/about-us/board-members" target="_blank">board director of the REIQ</a>, Paul Curtain, said that many currently did not put price guides on auctions – which is the intention of the current legislation.
“The current legislation was designed to move away from price guides, but over time it has been interpreted differently – it confused people,” he said.
“If you read it a particular way it allows for a price guide to be advertised, as long as you have the vendor’s permission in writing and some agents were interpreting it in this way.”
Hackett continued by noting that vendors still do have the option of providing a price guide.
“A seller should absolutely have the right to put a price on their property, but in simple terms, if they want to do this then it should be taken to the market via a tender campaign, rather than an auction.”
<blockquote>
DEBATE POINT: Vendors can still provide price guides by opting for private treaty sales
</blockquote>
Unsurprisingly, this echoes official sentiments from the Real Estate Institute of Queensland's CEO,<a href="/news/qld/letter-from-the-editor-more-information-not-less-please-queensland"> Anton Kardash, who said that other auctions go ahead without price guides</a>.
"Art, horses and motor vehicles, to name but a few, are regularly auctioned without a fixed price or a price guide because that is the very nature of auctions. The market will decide on the day of auction what it is prepared to pay for that particular asset," he said.
"It should also be highlighted that if a seller wishes to market a property with a price or using a price guide, they may do so by instructing their agent to sell via the much more popular private treaty method."
Curtain said that the changes would “tidy up” ambiguity at present, and help with the policing of real estate agents in the way they represent pricing, which in the past led to a lot of misrepresentation and complaints from disadvantaged consumers.
<blockquote>
DEBATE POINT: Currently there is ambiguity in the legislation that needs clearing up.
</blockquote>
“Agents would lead a buyer to a property on which they’d underquoted by 10 to 20% and the buyer would go the expense of getting building inspections and the like and then on auction day would realise they weren’t even in the running for the property,” he said.
“Essentially banning auction price guides is designed entirely to safeguard consumers and ensure we don’t return to those dark ages of misrepresentation. Arguments for price guides to be allowed potentially takes us back to those days, and this is something we categorically do not want.”
In fact, Curtain also pointed to other states as perpetrators, again much like the REIQ’s stance.
“It is with great pride that Queensland can say that it has largely avoided claims of misleading and deceptive conduct in relation to property price guides. Unlike in some other states where such complaints are rife, Queensland has not been subject to constant complaints of such a nature and will continue to prevent any future issues with the passing of this legislation,” said Kardash.
It appears Curtain agrees with this.
<blockquote>
DEBATE POINT: Other states are rife with underquoting, and they have price guides.
</blockquote>
“Certainly in other states underquoting is a huge problem – it has almost become the norm in states like Victoria for a price to be quoted and the property to sell above that level, sometimes significantly above, and this is only disadvantageous to the consumer,” said Curtain.
Hackett said that Place applauded the Property Occupations Bill 2013, with much of the other changes resulting in the reduction of red tape, despite the “controversy” surrounding price guides.
“Most of the members of the REIQ are supportive of the Bill as a whole, as are the majority of real estate agents, and indeed even consumers,” he said.
“The only issue that has been blown out of proportion is the section clarifying the rules surrounding auction price guides, but overall people are excited about the changes as a whole.”
Meanwhile, managing director of RE/MAX Australia, Michael Davoren, has urged the Queensland government to “stick with their plan and legislate for there to be no price indicators… despite a small number of people publicly lobbying for the opposite.”
One person publicly speaking for the other side of the argument is McGrath Estate Agents’ John McGrath, who has <a href="/news/qld/dark-ages-descending-on-queensland-as-auction-price-guide-ban-defies-common-sense-john-mcgrath">taken out full page advertisements in Queensland newspapers to argue against the proposal</a>.
"It does the people of Queensland a great disservice, in my opinion, to deny them such a fundamental right when it comes to the most important financial asset that any of us will ever own,” said McGrath.
"The banning of price guides will be a barrier to business for this great state. We should be open for business. Making it easy for others to research our property and invest in Queensland," he said.
However, despite the suggestion of a "small number" of people lobbying against the change, the REA and News Limited are also in opposition, and the <a href="/news/nsw/real-estate-institutes-go-head-to-head-over-queensland-auction-price-guide-debate">Real Estate Institute of New South Wales also spoke out against the ban</a>, suggesting that there is a heavy tide of opposition being faced. Notably, an online petition prompted by News Limited has <a href="https://www.change.org/en-AU/petitions/jarrod-bleije-mp-amend-proposed-legislation-aimed-at-banning-price-guides-on-properties-going-to-auction-in-qld?recruiter=83952376&amp;utm_campaign=signature_receipt&amp;utm_medium=email&amp;utm_source=share_petition" target="_blank">achieved 1,918 signatures</a>.
Davoren said that the reality in the industry is that the topic has been debated at length, and most accept the REIQ’s position on having no price guidance.
“While I accept that real estate practitioners and commentators from other jurisdictions can express an opinion on Queensland real estate, their own systems are far from perfect with cases of over quoting and underquoting regularly brought to public and legal attention,” said Davoren.
Despite this, it appears it’s uncertain how many agents actually are underpricing.
<blockquote>
DEBATE POINT: Could providing reserve prices one week before auction be an alternative solution?
</blockquote>
“A minority of agents are over quoting to the seller but then underpricing when going to the public – there is no transparency in that,” he said.
“The Bill proposes that an agent or auctioneer can provide a comparative market analysis in writing with the written consent of the seller and at the direct request of the buyer,” he said.
“We’ve invested so much already into making our real estate industry as transparent as possible; to encourage the use of price indicators is a backward step.”
He also said that, contrary to what some have been saying, the Bill will not stop buyers from using real estate portals to find properties in their price range, with any search parameter based on the property’s price range to be seen as a “search tool only” and not taken as the agent’s pricing guide or opinion.
Another solution to the underquoting issue has been suggested through the publishing of reserve prices a week out from the auction date. An <a href="/news/nsw/real-estate-institutes-go-head-to-head-over-queensland-auction-price-guide-debate">online petition for this change in New South Wales is circulating, launched by buyer’s agent Patrick Bright</a>, and has seen vocal support from SQM Research’s Louis Christopher. Bright has suggested to Property Observer that should the model be successful in New South Wales, other states may be interested to implement it.
Observer Terry Ryder, based in Queensland, has also been vocal on the issue of the Queensland price guide ban, <a href="/expert-insights/buying/dont-like-the-auction-price-guidance-ban-you-can-only-blame-yourself">telling those who dislike the ban that they can only blame themselves</a>.
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Queensland price guide ban garners support, with claims debate is “blown out of proportion”

<html><body>
Underquoting is a hugely tricky topic for many in property, with the “quote [or price] it low, watch it go” mantra said to be the modus operandi of many in the real estate selling business, especially when it comes to auction sales.
Recently, <a href="/news/online-petition-for-mandatory-reserve-price-publishing-launched">EPS Property Search’s Patrick Bright began a petition against underquoting</a>, and encouraging the consideration of early publishing of the reserve price for properties heading to auction. Property Observer covered this petition upon its launch, and <a href="/news/should-auction-reserve-prices-be-published">discussed it with him prior to its inception</a>.
<blockquote>
SQM Research’s Louis Christopher has also expressed his dislike of the practice of underquoting and is vocally backing Bright’s petition.
</blockquote>
Property Observer recently attended an auction in Sydney where there was around a $200,000 discrepancy between reserve price and the price guide provided by the real estate agent. The property sold at auction just above the reserve, and we have clear reason to believe that the vendors would never have considered an offer around the price guide provided. Certainly, there may have been buyers that were unable to afford this price and that may have spent money on inspections and conveyancing to prepare for the auction, let alone time. As a buyer's agent, Bright says that this is all too common and that he sees underquoting at the majority of auctions he attends.
SQM Research’s Louis Christopher has also expressed his dislike of the practice of underquoting and is vocally backing Bright’s petition.
"I am personally sick to death of underquoting in real estate.  It wastes time, money and breaks people’s hearts once they know they have been deceived. Ultimately it is damaging to the property sector and all those who participate in it,” said Christopher in his recent newsletter.
"One thing Patrick and I share in common is that we have a very strong belief in property market transparency and ensuring people don’t get ripped off in property transactions. Recently, Patrick has gone so far as to get a petition going to make it compulsory to advertise auction reserve prices to stamp out underquoting and dummy bidding,” he said, noting he 100% agrees with the objective, urging others to <a href="https://www.change.org/petitions/the-honourable-stuart-ayres-mp-nsw-government-make-it-compulsory-to-advertise-auction-reserve-prices-to-stamp-out-underquoting-and-dummy-bidding%20%20" target="_blank">sign the petition</a>.
However, Christopher also expressed his dislike at media ignoring the petition.
"Sadly, I can tell you now there are some dark forces out there who don’t want to see this happen. Indeed, Patrick has recently told me of some media outlets who won’t give this petition coverage, even after promises they would! No doubt they are worried they may lose advertising dollars due to these dark forces,” he wrote.
He said he had a message for those outlets: "Please show a bit of spine on this issue and give it the coverage it deserves.”
He told Property Observer that despite the pain some interests may feel in the short term, price transparency will create overall benefits across the market, and it should be given a run and prominence.
Recently, mainstream media outlets went gangbusters writing about Queensland’s potential change to ban price guides from auctions – something<a href="/news/qld/dark-ages-descending-on-queensland-as-auction-price-guide-ban-defies-common-sense-john-mcgrath"> Property Observer also wrote about</a> – and he noted that it is startling to see the contrast between some experts’ exposure and others.
"[Underquoting] does come out in a rising market,” Christopher explained. “Markets can move quickly, but what Patrick has put forward is that the reserve price isn’t provided until a week out.”
Discussing the Queensland potential price guide ban, he noted that he sat on the fence, saying there were many pros and cons. However, he noted that no guide is better than a phoney guide.
<blockquote>
"They’re big businesses protecting their bottom line, and it’s completely their right to do that,” Bright said.
</blockquote>
While neither would disclose which media outlets said they would cover the petition and since changed their minds, Property Observer notes that online there have been stories from Australian Property Investor magazine. Patrick Bright confirmed that API had been in support of sharing news of the petition.
Bright said that he doesn’t want to criticise individuals as he is sure there are powers above them calling the shots.
"They’re big businesses protecting their bottom line, and it’s completely their right to do that,” he said.
He also said that he is getting a lot of support when he personally speaks to sales agents, but finds that many are concerned of ridicule from their peers if they support the petition.
Disclosure: Jennifer Duke has signed the petition for reserve prices to be published, as well as <a href="/news/qld/letter-from-the-editor-more-information-not-less-please-queensland">a petition opposing the Queensland price guide ban</a>.
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Louis Christopher and Patrick Bright say media outlets are ignoring underquoting petition

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The much discussed practice of underquoting, or bait pricing, has attracted the interest of Consumer Affairs Victoria, who have announced they will be keeping a close eye on the property market, and specifically auctions, this autumn season.
The practice of underquoting, much-discussed on Property Observer, has director of Consumer Affairs Victoria Claire Noone set to catch out real estate agents misleading prospective buyers. This is timely, considering the potential Queensland change to legislation to stop all price guides at auction in <a href="/news/qld/letter-from-the-editor-more-information-not-less-please-queensland">a bid to solve the issue of underquoting that the REIQ claims is rampant in the auction-heavy capitals</a>.
"In this peak auction period, we are gathering market intelligence through online monitoring and other data collection methods," Noone said. 
"We will be watching for any misconduct during the buying and selling process - from the moment a property is advertised to when deposits are paid and held in trust accounts.”
She also expressed that staff would be attending auctions to ensure they are “conducted according to auction rules”. Property Observer welcomes this attention into the issue, particularly surrounding the announced attention being paid to indicators of misleading price advertising and campaigns.
However, Noone also urged prospective buyers to ready themselves with auction rules, including price advertising and underquoting, prior to attending auction so that they can be prepared.
"Comparing the initial advertised price with the sale price is not evidence of underquoting," Noone explained. 
"Underquoting is when an agent misleads a prospective buyer about the likely selling price of a property for sale.”
She explained that examples of this included when a property is advertised or quoted to a prospective buyer at a price lower than the seller’s asking price or auction reserve price, the agent’s estimate of the selling price or a genuine offer or expression of interest.
Property Observer recently attended a Sydney auction that was potentially a case of underquoting, with a reserve price set some $200,000 above the price guide.
Noone also reminded buyers that, at auction, you will not be able to make a contract subject to conditions and that there is no cooling off period.
Underquoting is a regularly debated topic. Recently, <a href="/expert-insights/investing/underquoting-the-auction-system-s-necessary-evil-mark-armstrong">observer Mark Armstrong referred to is as the auction system’s “necessary evil”</a>, meanwhile a petition has been started by buyer’s agent Patrick Bright for the <a href="/news/online-petition-for-mandatory-reserve-price-publishing-launched">mandatory publishing of reserve prices</a>.
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