Melbourne's construction boom appears to have slowed, with permitted construction at a nearly one-year low

Nearly 60 per cent of real estate agents recently audited by Victorian Consumer Watchdog have been fined for underquishing their offers. As property sales have increased, the industry has also received attention.

(Image source: Die Zeit)

Inspectors from the Victorian Consumer Affairs Bureau raided 29 intermediaries in Greater Melbourne in May after receiving a whistleblower, 17 of which were fined more than $300,000 for underquishing their offers, according to The Times.

Consumer Affairs Director Melissa Horne said consumers should not be deceived when making one of life's biggest decisions. Horne said: "Quoting low prices is a clever sales strategy, but it is not legal, and these results are a strong warning to intermediaries that if you violate the rules, you will be discovered." ”

Concerns about low prices have intensified as the median melbourne home price has soared to $1037923. Over the past year, Melbourne house prices have risen by an average of almost $150,000, or 16.8 per cent.

Buyer advocate David Morrell welcomed the government's crackdown but called for tougher penalties for violating intermediaries, such as suspension of licenses. He said: "If you use this way to sell a house for $110,000, then a fine of $10,000 is not a big deal. "The Victorian Consumer Affairs Department did not disclose details of the agencies and intermediaries who were fined.

Morrell, who is launching a campaign to provide more protection for potential buyers, said the case of quoting low prices in Melbourne was very common.

Morrell said: "I often see homes selling for $1 million more than the advertised maximum price, and intermediaries do this to gather information about buyers. Adam docking of the Victorian Real Estate Association said most agents hate the practice of quoting low prices, which is not common.

He said: "People have a misconception that the sales price is higher than the advertised price is to quote the low price, in fact, due to the unpredictable housing market, it is difficult for intermediaries to accurately define the house price." ”