Homebuyers in this Aussie city are being ripped off my underquoted prices

Tiny foot square cottages now cost more than $800,000 but hopeful buyers are missing out at auction as agents continue to under-quote them.

“Some of the worst suburbs in Victoria are seeing differences between the starting quote price and the final selling price of up to 30%,” realAs chief executive Josh Rowe said.

New figures suggest Melbourne is in the grip of an underquoting epidemic.

Also read: Some Aussie property markets correcting, others booming

The top 5 suburbs where you’re most likely to pay well over the quote price are Caulfield South where you can expect to pay around 30.6%, Keysborough at 26.4%, Toorak at 25.9%, Gladstone Park at 25.0% and up to 24.8% more than the quoted prices in Donvale.

Suburbs where you can expect to pay much closer to the quoted prices are the city, Altona, North Melbourne, Oak Park and Altona North.

The state government is cracking down on rogue agents with 13 currently under investigation.

From next year, agents face hefty fines under new laws targeting underquoting.

Also read: Melbourne price growth leads the nation while other cities fall behind

“It must have 3 comparable properties, the indicative selling price as well as the median selling price of that suburb,” Consumer Affairs Minister Marlene Kairouz said.

Soaring house prices and low interest rates have helped fuel an affordability crisis, which is seeing an entire generation being locked out of the market.

“If young people can’t afford a home then that opportunity for wealth creation in the future will be cut off,” Shadow Treasurer Chris Bowen said.