Underquoting in WA's Property Market: A Deep Dive into Current Trends
Underquoting, a practice where real estate agents deliberately advertise properties at prices below reasonable estimates to attract buyers and create artificial competition, is illegal across all Australian property markets. This issue has garnered significant attention, particularly in eastern states like Victoria and New South Wales, where auctions are prevalent, leading to strengthened laws in those regions.
Western Australia's Robust Market Conditions
Western Australia is currently experiencing an exceptionally strong property market, characterized by high demand and limited supply. Agents typically conduct due diligence and use recent comparative sales to set listing prices, but intense competition often drives final sale prices well above initial expectations. According to REIWA research, only 9.9 percent of houses in Perth sold for less than the asking price in the December 2025 quarter, highlighting the market's vigor.
These conditions can spark concerns about underquoting, but it is crucial to note that a property selling above its listing price does not automatically indicate illegal activity. REIWA has analyzed the relationship between discounting rates, discount sizes, and days on market over time, revealing that these metrics are strongly correlated and reflect prevailing market dynamics rather than deliberate underquoting.
Market Dynamics and Legal Reminders
In a fast-moving seller's market, such as the current one in WA, final sale prices exceeding initial listings are a common occurrence, even with reasonable pricing guidance. With new listings falling below long-term averages in late 2025 and sustained strong demand, the median time to sell a house dropped to a record low of eight days in September and October. The proportion of vendors selling below listing prices declined throughout the year, dipping below 10 percent by the end of 2025.
This contrasts sharply with buyer's markets, like in 2019, when houses in Perth took nearly two months to sell, and almost 60 percent of vendors discounted their prices. While current trends show around 90 percent of houses selling at or above listed prices, REIWA emphasizes that underquoting remains illegal and does not condone such behavior. Consumers with genuine evidence of intentional underquoting are urged to report agents to Consumer Protection to uphold market integrity.
