Illegal Auction Tactics Driving Up Property Prices in Australia

At AusNewsLanka, we aim to keep the Australian community informed with timely updates.

The Real Estate Buyers Agents Association of Australia (REBAA) is sounding the alarm about this illegal auction tactic that’s still popping up, despite being banned.

So, what exactly is dummy bidding?

According to REBAA president Melinda Jennison, it’s when someone places a fake bid at an auction — not because they want the property, but just to drive up the price.

“A dummy bid is a false bid by a non-genuine bidder, often a friend or family member of the seller, or even someone linked to the sales agent,” she explained.

And yes — it’s 100% illegal.

Even though auctions have strict registration rules in place, Jennison says these fake bids still sneak through. And they can do real damage.

“Dummy bidding misleads real buyers,” she said. “It creates fake competition and can push people to pay way more than the property’s true market value.”

In one recent Brisbane auction, Jennison said there were blatant dummy bids designed to artificially inflate the sale price. This kind of thing can leave buyers in financial trouble — or worse, struggling with mortgage stress down the line.

The biggest issue? It also erodes trust in the entire auction process. If buyers feel they can’t rely on a fair playing field, they might walk away from auctions altogether.

Jennison’s advice? Stay sharp.

Know the auction rules, do your homework on property values, and keep an eye out for bidding that seems suspicious.

If something doesn’t feel right, you’re within your rights to ask the auctioneer who made a bid. And if you genuinely suspect dummy bidding, report it to your state’s property regulator.

“Dummy bidding is illegal, and those responsible should be prosecuted,” she said.

At the end of the day, auctions should be about fair competition — not shady tactics that hurt genuine buyers just trying to get a foot in the door.

More updates to come on AusNewsLanka.