Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Joel Robinson

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens, rooftop open space and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Ceerose, founded by Edward Doueihi in 1998, has become one of Sydney's more active apartment developers, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

First look: Ceerose doubles down in Leichhardt with adaptive reuse of former warehouse site

Underquoting

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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>
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Six must know facts about underquoting

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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”

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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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