<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

<main data-perf-region="main">
Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

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”

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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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