Hocking Stuart responds to charges of underquoting properties in Richmond, Kew



Real estate agency Hocking Stuart has defended itself against allegations of repeated underquoting from its Richmond office.

The Bridge Road branch is facing court, charged with underquoting on 11 properties following a state government audit.

The agency has pointed to strong interest in the Melbourne property market in response to allegations in the Federal Court on Friday.

Hocking Stuart allegedly misled prospective buyers on the price of 10 Richmond properties it listed, and one in Kew, during 2014 and 2015, the court was told.

The properties include, according to court documents, a detached Victorian in Mary Street, Richmond, which sold for $955,000 in August, 2014; a two-bedroom apartment in Richmond’s Coppin Street that was listed for $550,000; a two-bedroom apartment in Docker Street, Richmond, which was snapped up last May for $667,000  and a grand Edwardian in Kew’s Barkers Road, but sold for $955,000 in October, 2014.

The charges are the first to arise from a Consumer Affairs probe of 100 properties over spring last year.

As a result of the crackdown, 880 investigation files were opened.

Another 100 inspections are scheduled over autumn.

Consumer Affairs Minister Jane Garrett said eight major investigations are under way of both large and small agencies.

Hocking Stuart’s head office said in a statement yesterday that it was “currently working through the allegations” made by Consumer Affairs.

“We are not in a position to discuss the specific details until further progress has been made,” the statement said.

“What we can say is our head office takes its responsibility to prospective buyers seriously.

“Furthermore, we actively encourage vendors to advertise their properties with a price guide to ensure transparency for buyers and sellers alike.

“Under the current law, while vendors may seek the advice of agents, they are not required to disclose their reserve to agents until the day of auction and it can be higher than the advertised price if the interest is strong.”

Hocking Stuart Richmond’s managing director Peter Perrignon could not be reached for comment.

Ms Garrett said the government was putting agents on notice.

“Buying a house is one of the biggest decisions people make,” she said.

“It’s heartbreaking for potential buyers when they are lured into properties they can’t afford.

“The government is coming after anyone doing the wrong thing.”

Ms Garrett could not comment directly on the Hocking Stuart case, which is due to return to court.