Exploring the Australian Real Estate Market

Canada and Australia share many similarities, but their real estate industries differ significantly.

Both countries have strict regulations for the real estate sector, requiring agents to be licensed and facing issues like housing supply shortages, affordability problems, foreign buyer restrictions, tenancy reforms, and rising costs.

However, the differences become apparent when comparing the two markets.

No MLS? No buyer agents?

In Australia, real estate agents are not commonly referred to as Realtors, and there is no standardized MLS platform. Buyers usually do not have their own agent, and the commission typically goes to the selling agent.

Salaried agents and minimum income

Commissions in Australia vary, with agents sometimes being salaried, particularly when starting out. There is a minimum income threshold before agents can switch to a commission-only model.

This system provides agents with salary and commission potential but can make it challenging to manage non-performing agents due to labor laws.

Australia’s unique sales methods

Real estate sales methods in Australia include auctions, with Melbourne having a strong auction culture. Misrepresentations around prices can be an issue, but reliable auction companies prioritize transparency.

Buyers must have their deposit ready and settlement terms confirmed to bid at auction, and auction sales are unconditional.

Another common sales technique is “expressions of interest,” where buyers submit their best offer by a set deadline.

Misrepresentation and underquoting in property listings

Underquoting and misrepresentation in property listings are frowned upon in Australia, with the government actively investigating and penalizing agents found guilty of such practices.

Money laundering has also been a long-standing issue in the industry, with new legislation addressing it.

Taxation, debt levies, and the investor exodus

Challenges affecting consumer confidence in Australia include elevated interest rates and changes in government taxation, particularly in Melbourne and Victoria, where investors are facing a post-pandemic debt levy.