The property market correction, driven by a series of interest rate rises and cooling buyer sentiment, has left many agents struggling to close deals. In private online groups and social media threads, agents have been sharing their experiences, with some admitting to resorting to stunts such as faking a burglary at a listing to create urgency, while others swap scripts for deflecting lowball offers.
According to industry sources, the sentiment in these forums has shifted from optimism to alarm over the past six months. One agent, speaking on condition of anonymity, said: "We're all feeling the pressure. Listings are sitting longer, and vendors are getting nervous. Some agents are doing whatever it takes to get a sale across the line."
However, the tactics being discussed have raised eyebrows among consumer advocates and regulators. The staged robbery stunt, for instance, could amount to misrepresentation or even fraud under state property laws. The Real Estate Institute of Australia (REIA) has warned agents to maintain ethical standards, even in a tough market.
"We understand the market is challenging, but there is no excuse for behaviour that could mislead buyers or damage the profession's reputation," said a REIA spokesperson.
Buyers, meanwhile, are reporting increased pushback from agents when they try to negotiate. Some agents have reportedly been instructed by vendors to hold firm on prices, while others are actively seeking ways to create a sense of competition, such as promoting multiple offers even when interest is low.
The downturn is part of a broader correction after a pandemic-era boom that saw prices soar in most capital cities. According to CoreLogic, national home values have fallen by around 5% from their peak, with some markets seeing steeper declines. The Reserve Bank of Australia's cash rate has risen by 375 basis points since May 2022, cooling demand and reducing borrowing capacity.
For agents accustomed to the frenzied conditions of 2021, the current environment represents a stark reversal. Many entered the industry during the boom and have never experienced a sustained downturn. The shift is also affecting their incomes, as most agent compensation is commission-based.
Some industry observers argue that the market is simply returning to a more normal state after an unsustainable period of price growth. Nevertheless, the anecdotal evidence of agents resorting to gimmicks suggests that the pain is real and widespread.