Is under-quoting creeping back

I have noticed recently a number of properties I have been watching (South East Melbourne) have sold significantly over the advertised range. Has anyone else noticed this? And what could it mean for market direction?

Example: 4/5 Palermo Street, Mentone, Vic 3194
Advertised $600-650k, sold on Saturday for $733k

 

I don’t think it ever left. Underquoting laws came in they continued underquoting because it’s hardly being enforced as it’s almost impossible to prove

 

Is it the expectation of a softening market or under-quoting?

 

As a buyers agent i am noticing more and more that its not so much under quoting to the public as the reserve tends to be around the top end of the quote but rather that agents are under quoting to the vendors. That way they are able to quote a very low fee in order to win the business guarantee a sale on auction day but may even have included a kicker in terms of their fee if they achieve over a certain amount on auction day!

 

@Alastair Mairs - an agent looking after their own interests? Never!!