17 June, 2026
The Hon. R.A. SIMMS (12:24): I move:
1. That a select committee be established to inquire into and report on the conduct of real estate agents, property managers and other real estate professionals in South Australia, with particular reference to:
(a) the adequacy of existing regulations and codes of practice;
(b) regulations and codes of practice that exist in other jurisdictions;
(c) the prevalence of misleading, deceptive or unreasonable conduct impacting on property vendors, purchasers and renters, including (but not limited to) the use of tactics such as underquoting, inaccurate appraisals, non-disclosure of building faults, rent bidding and unreasonable rental inspection reports;
(d) adequacy of dispute resolution and review mechanisms available to purchasers, vendors and renters;
(e) regulations and codes of practice that exist in other jurisdictions;
(f) any recommendations to improve protections for consumers across the real estate sector; and
(g) any other related matters.
2. That this council permits the select committee to authorise the disclosure or publication, as it sees fit, of any evidence or documents presented to the committee prior to such evidence being presented to the council.
It is my intention to bring this motion to establish a select committee to a vote after the winter break. I think all members will be aware of the issues that have been reported over many years now within the real estate industry, and some of the unethical or misleading practices that can be adopted by real estate agents and, indeed, property managers. These are practices that impact people right across the market.
We know that we are in the middle of a housing crisis, the worst housing crisis that we have seen in generations. As a result, there is a chronic shortage of housing and that really strengthens the hand of people who own property, but it also strengthens the hand of real estate agents who are seeking to sell properties or find tenants.
Some of the horror stories that I have heard have included people being encouraged to pay significantly more rent than that for which a property is advertised; people flagging issues with properties and not having them addressed; underquoting and properties being listed on a market for a price that is far less than they are likely to go for; or, on the other end of the spectrum, sellers of properties being given inflated appraisals that induce them to sell their properties.
I think, like all South Australians, I was horrified to hear the ABC's report last week of someone buying a new property—that is, a property off the plan—considering that it had been built by a reputable builder and then getting a building inspection that has said that the property was just not suitable. They are now left carrying the can in terms of having to remedy all of the defects within the property.
Sometimes these matters are dealt with through CBS, and I understand that there is a code of conduct for real estate agents and, of course, those who actively mislead can face repercussions, but I think there is a question around how adequate these current penalties are and whether they are really meeting the needs of South Australians at the moment, particularly when a lot of them rely on consumers taking action for breach of contract, which just is not always possible or viable.
What this committee is seeking to do is shine a light on some of these practices. We know that a lot of the practices that are being adopted by real estate agents are actually inflating the cost of housing, because when you underquote, when you give false appraisals and the like, you are artificially lifting the market. I think what we should be doing at the moment is applying every lever we can to try to get the property market under control, and to ensure that both renters and prospective buyers are protected.
One option that I am attracted to, and I know other states are looking at, is imposing a requirement for building inspection reports to be commissioned by the vendor—that is the seller of the property—and made available as part of the Form 1 process. This works in the ACT, I understand, and New South Wales have recently announced support for similar reforms. Something like that, I think, would provide more protection for prospective buyers here in South Australia rather than what we have at the moment, which is really just buyer beware. I encourage members to think a little bit about this during the winter break, and I intend to seek to establish this committee when parliament resumes in the middle of August. With that, I conclude my remarks.
Debate adjourned on motion of Hon. M. El Dannawi.