Underquoting in Alexandria: why this Sydney hotspot tops the list.
Sydney buyers have long been frustrated by misleading price guides, but new data confirms some suburbs are far worse than others. Underquoting in Alexandria now stands out as one of the most serious issues in the city, with houses routinely selling well above their advertised guides. Interestingly, when I saw this story on the news, my immediate thought was of Alexandria. Underquoting is absolutely rife in this area, and there are a couple of particular agents you can easily identify as serial underquoters if you have been watching their campaigns closely.
What the latest Homer data shows
New analysis by Homer, a property data platform that tracks price guides against actual sale results, confirms that Alexandria is now the worst Sydney suburb for properties selling significantly above the quoted price guide. Their figures show that the vast majority of Alexandria houses sold at least 10 per cent above the guide provided to buyers. Other underquoting hotspots in the same period included Camperdown, Marrickville, Double Bay and Stanmore, but Alexandria topped the list.
Homer collects every sales listing nationally and compares the public price guide with the final sale figure. This reveals patterns where underquoting behaviour consistently puts buyers at risk. Many buyers invest in building pest and/or strata reports and legal contract reviews. If you add up the cost for each property that is underquoted, it runs into the thousands and potentially into the $10.000’s.
Why underquoting in Alexandria is so widespread
Alexandria has the perfect mix of conditions that make underquoting more likely and more effective from a campaign perspective.
Underquoting has become schematic that if sales agents don’t engage in underquoting, they won’t get any buyers through the properties they are selling. It makes the property appear expensive, and buyers don’t inspect because they see it outside their budget or don’t value it for money compared to the underquoted properties.
Strong and sustained buyer demand
Alexandria has undergone a significant transformation, shifting from an industrial to a highly desirable residential area. Renovated terraces, townhouses and warehouse conversions attract buyers looking to be close to the City. High demand means strong competition from the first inspection.
The underquoting issues are far beyond this, though. The problem is that buyers rely on the search fields in major property portals, which are manipulated by up to $500,000 in the back end to bait buyers. Despite all the financial loss consider their weekends inspecting properties that are not within their budget. They don’t even know they are doing it. When they attend inspections, the agent quotes a price a lot lower than what the owner would accept and what a buyer would pay.
Limited supply of quality homes
Quality properties in Alexandria are tightly held. When one becomes available, the buyer pool often outweighs supply. A low guide increases inspection numbers, which pushes momentum and reinforces competition early in the campaign, given the price the agent has advertised and the price they are quoting.
Auction-driven selling strategies
Many Alexandria homes are sold via auction. A sharp guide boosts interest in the early weeks, leading to crowded inspections and competitive bidding on auction day. This environment can produce results far beyond the initial guide.
Emotion and fear of missing out
Alexandria’s lifestyle appeal creates emotional attachment early in the campaign. Buyers who have been searching for months often refuse to miss out again, which fuels fast bidding and higher sale prices, even when those prices are far above the guide that brought them into the campaign.
The impact on Sydney buyers
Underquoting wastes time, energy and significant money. Buyers pay for contract reviews, building and pest inspections, and strata reports on homes that were never realistically within their price range. The emotional toll is also substantial, as we have highlighted throughout this blog.
At MULLIGAN Buyers Agents, we regularly support clients who have spent six to twelve months chasing homes in suburbs such as Alexandria, only to uncover a consistent pattern of sale prices well above the guide. By this stage, buyers often feel defeated and assume they cannot compete in the market, when in reality, the problem is not their budget; it is the underquoting behaviour.
How buyers can protect themselves when purchasing in Alexandria
Treat the guide as marketing, not market value
In underquoting hotspots, guides are often more reflective of campaign strategy than true value. Add at least 10% but up to 20% to the price the agent quotes you.
Rely on comparable sales
Comparable sales show real market behaviour. Match land size, layout, condition, street position and renovation level.
Check the agent’s history
Look at the selling agent’s recent campaigns. If they consistently sell 10 to 20 per cent above their guide, assume the current property will follow the same trend.
Use the sold property search feature on the major portals
On realestate.com.au, you can search the same way for sold properties as you do for properties on the market. You can compare similar properties and see the real market price of a property.
Set your maximum price early
Determine your ceiling based on borrowing capacity and recent comparable sales. Decide this before wasting your time and money on what the property is worth to you.
Consider engaging a buyers’ agent
A buyer’s agent can analyse true value, interpret agent behaviour, structure a bidding or negotiation strategy and protect you from overpaying. At MULLIGAN Buyers Agents, our work is grounded in consumer advocacy, evidence and clarity for Sydney home buyers.
What needs to change, and Who created the problem
Although laws exist requiring agents to provide a reasonable estimate supported by evidence, enforcement has not kept pace with buyer frustration. Stronger penalties, clearer quoting standards and better transparency would help restore confidence in the market.
Until regulatory changes are fully implemented, buyers in Alexandria need to rely on independent research, comparable sales and informed strategy rather than assuming the guide reflects real value. The Regulator is working on reforms to increase fines up to three times the commission on that property or $155,000 penalty. The current $2,200 fines are not working.
Agents or agents and the industry created the problem, so they are the ones who can effect change and fix it. The problem is so widespread that it requires sectoral involvement, not just regulatory compliance.
Conclusion
Underquoting in Alexandria is driven by strong buyer demand, limited stock, auction-led campaigns and emotional competition. The latest Homer data confirms Alexandria is now Sydney’s most significant underquoting hotspot. With proper preparation, realistic expectations and the right support, buyers can navigate this market with more confidence and avoid the pitfalls of misleading price guides.
Questions and Answers about
Underquoting is common in Alexandria because demand for quality homes is extremely high and supply is limited. Many properties are taken to auction, and sharp price guides are often used to lift inspection numbers and increase competition. When multiple buyers are emotionally invested, the final sale price can far exceed the original guide price.
Buyers can protect themselves by relying on recent comparable sales rather than price guides, reviewing the selling agent’s quoting history, and setting a clear maximum price before entering a campaign. Working with a buyer’s agent also helps buyers understand true value and avoid wasting time on campaigns that were never within budget.
Not always. A property selling above the guide can result from strong competition, unique features or fast-moving market conditions. Underquoting occurs when the guide is set below the agent’s reasonable estimate of value. The key is whether the guide was supported by comparable sales and recent evidence, not just where the final bidding ended.
Paul Mulligan is the Principal Buyers Agent & Expert Negotiator at MULLIGAN Buyers Agents, Sydney. One of only two buyer’s agents in Australia to complete Negotiation Mastery at Harvard Business School, Paul combines advanced negotiation skills with over 30 years of market expertise to achieve outstanding results for property buyers. Passionate about helping clients avoid costly mistakes, he provides expert guidance throughout the buying process from search to settlement.
