PHOTO: More Money Than Drug Dealers’: The Brutal Truth About Aussie Real Estate Commissions. FILE
🧨 “It’s a kick in the guts.” That’s how frustrated insiders are describing the sky-high commissions Australia’s real estate agents are pocketing as ordinary families buckle under one of the worst housing affordability crises in the nation’s history.
As property prices hit record highs — and with no signs of slowing — agents are earning tens of thousands more for the same amount of work, critics say. In some cases, they’re walking away with six-figure paydays after a few open homes and a glossy listing.
All while Aussies battle to keep a roof over their heads.
Real estate agents are charging more for the same amount of work, experts say (an aerial shot of Rozelle, in Sydney’s inner west is pictured)
📈 The Commission Boom No One’s Talking About
According to data from bRight Agent, a Perth home valued at $1 million in 2020 is now worth closer to $1.7 million. That means an agent charging 2% commission could now earn $34,000 on that same house — compared to $20,000 five years ago.
“Aussies are working overtime to hold onto their homes, while agents are partying on yachts in designer suits,” said Aaron Scott, co-founder of the comparison platform.
Scott argues that while agents deserve to be paid for their time and expertise, their income should not be tied to skyrocketing property values — especially when their workload hasn’t changed.
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🧾 ‘Admin in a Suit’: What Are Agents Actually Doing?
Former real estate agent Simon Murphy didn’t mince words:
“Agents throw the property online, run a couple of open homes, pass on some feedback — and somehow walk away with $20,000. That’s not strategy. That’s admin in a suit.”
Murphy, now a buyer’s advocate, says the entire commission system is broken. He argues most agents aren’t selling anymore — they’re simply listing and collecting.
🏡 The Numbers Don’t Lie
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Some elite agents earn over $1 million a year — selling just one house per month.
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In parts of Sydney, commissions have jumped tenfold since the 1990s.
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A house that fetched a $3,500 commission in 1995 now nets agents around $35,000, according to former agent Neil Jenman.
Jenman described the industry as “more lucrative than drug dealing,” adding:
“Governments deregulated commissions on the promise they’d fall. Instead, they exploded.”
⚖️ Is It Time to Regulate Agent Commissions?
Scott believes it’s time to ask tough questions:
“If we regulate rent hikes to protect tenants, why can’t we do the same for selling costs to protect homeowners?”
Historically, states like Queensland had commission caps — scrapped in 2014 — which limited agents to 2.5%. While the Real Estate Institute of Australia (REIA) claims deregulation boosted competition and lowered fees in metro markets (some agents charge under 1%), that’s not what many Aussies are experiencing.
In regional areas, 3% commissions are still common.
💡 The Industry Responds — But Is It Enough?
The REIA insists most agents operate on modest commissions in a competitive landscape. But critics argue that modest doesn’t match the windfall many top-performing agents receive in a hot market.
“There’s no link between the agent’s work and what they get paid,” said Jenman.
“It’s just a percentage of whatever the market does.”
🧨 Middle-Class Pain, Millionaire Profits
While families are scrimping, delaying retirement, or being locked out of the market entirely, the image of champagne-soaked celebrations and six-figure commissions stings.
As property values inflate, so too do the profits of those facilitating the deals — often without lifting a finger beyond the bare minimum.
“This is what happens when the system rewards access, not effort,” said Murphy.
“Most agents are middlemen making millions off a broken model.”
SOURCE: THE DAILY MAIL