Sydney Homes Sell for Median $117,500 Above Advertised Price Guide

New data covering all published price guides for residential sales in the six months to April shows fewer than 4% of real estate agents list homes within 3% of the final sale price. Across all capital cities, the typical above-guide sale exceeds the advertised range by 4-9%, while below-guide sales fall short by 3-5%.

Perth and Adelaide lead the country, with 76% and 73% of sales respectively exceeding the guide ceiling.

The typical above-guide home in Perth sells for $56,000 more than advertised, while Adelaide properties exceed the guide by a median $75,000. Sydney records the largest dollar gap, with above-guide sales reaching a median $117,500 above the top of the advertised range.

Brisbane follows closely at $100,000. Melbourne is the national outlier, with 53% of properties selling below the guide compared to 37% above. Regional Victoria shows an even larger share selling below the guide at 71%.

The CEO of home buying app HOMER said the industry still has a widespread problem with transparency. Analysis by Guardian Australia in 2024 found underquoting, defined as sales exceeding 10% of the highest presale price guide, was most prevalent in Sydney at 20% of sales and Perth at 18%.

Laws against deliberate underquoting exist in New South Wales and Victoria. New South Wales now requires sellers to publish a price guide on all advertising, with agents caught underquoting facing fines up to $110,000. Victoria introduced guidelines requiring agents to use comparable local properties when setting price estimates before auction.

Consumer Affairs Victoria can request evidence from agents showing how they selected comparable properties, with penalties for non-compliance. The managing director of the Australian Housing and Urban Research Institute said the greater concern occurs when auctions reach a price within the advertised guide but are then passed in.