The property market in New South Wales is set for a major shift, with new regulations coming into effect from 16 March 2026 aimed at eliminating one of the industry’s most controversial practices — underquoting.
These reforms are designed to improve transparency, rebuild buyer trust, and hold real estate agents accountable for misleading pricing strategies.
What Is Underquoting in Real Estate?
Underquoting occurs when a property is advertised at a price lower than its realistic selling value, often to attract more buyers and create competition.
While already illegal, the practice has remained widespread, with many buyers:
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Attending inspections for properties beyond their budget
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Spending money on legal checks and reports unnecessarily
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Experiencing frustration and loss of trust in the system
What’s Changing From 16 March 2026?
The NSW Government is introducing strict new rules that significantly reshape how properties are marketed.
Key Changes Include:
1. Mandatory Price Guides on All Listings
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All property listings must now include a clear price or price range
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This removes vague terms like:
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“Price on application”
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“Contact agent”
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The goal is to ensure buyers know what they can realistically afford
👉 This is one of the biggest changes, aimed at stopping buyers from wasting time on unsuitable properties.
2. Massive Increase in Penalties
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Fines for underquoting can now reach:
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Up to $110,000, or
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Three times the agent’s commission
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This is a significant jump from previous penalties and is designed to act as a real deterrent, not just a “cost of doing business.”
3. Mandatory “Statement of Information”
Agents will be required to provide a breakdown explaining:
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How the price guide was calculated
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Comparable property sales
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Market trends and suburb data
This helps buyers understand why a property is priced a certain way.
4. Ban on Misleading Pricing Tactics
Agents will no longer be allowed to:
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Advertise below previously rejected offers
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Use misleading phrases like:
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“Offers over”
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“Price guide +”
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Keep outdated price estimates live
All pricing must be accurate, updated, and evidence-based.
5. Why These Changes Were Introduced
The NSW Government’s crackdown comes after years of complaints about misleading property pricing.
Key Issues Identified:
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Buyers being misled into attending inspections
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Properties selling far above advertised guides
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Weak penalties failing to discourage misconduct
The new laws aim to:
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Improve market transparency
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Protect buyers from financial and emotional stress
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Raise professional standards in the industry
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6. What This Means for Buyers
For property buyers, these changes are largely positive.
Benefits for Buyers:
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Clearer understanding of property prices
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Less time wasted on unaffordable homes
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More confidence in listings
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Better ability to compare properties
However, buyers should still:
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Do their own research
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Check comparable sales
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Understand that final sale prices can still exceed guides in competitive markets
6. What This Means for Sellers
Sellers may see both advantages and challenges.
Pros:
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More qualified and serious buyers
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Reduced “window shoppers”
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Better alignment between expectations and market value
Cons:
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Less flexibility in pricing strategies
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Potentially fewer buyers drawn in through low pricing tactics
Final Thoughts
The 2026 reforms are likely to reshape how property is marketed and sold across NSW.
For businesses in real estate, construction, and development, this presents an opportunity to:
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Build trust-driven marketing strategies
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Focus on transparent communication
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Position brands as ethical and buyer-focused
Looking to Invest or Buy Property?
Navigating Australia’s property market requires the right strategy, research, and negotiation expertise.
If you would like to understand where to invest, what suburbs are growing, or how to secure the right property, speak with the team at Abode Oasis Properties.
Call Tasneem Rangwala : 0423012600 or visit our Contact Page to discuss your property goals: : https://abodeoasisproperties.com.au/contact-us-abode-oasis-properties/