Benchmark · Updated 18 May 2026
Real Estate Agency Fees Benchmark Australia 2026
Sales commission, property management fees, letting fees and ancillary charges across Sydney, Melbourne, Brisbane, Perth, Adelaide, the smaller capitals, and regional Australia. Includes tiered vs flat structures and when commission reduction makes commercial sense.
Sales side
Sales commission by city
Commission rates are negotiable and vary by suburb, agency brand, vendor profile, and current market. The ranges below are the observed band of arm's-length transactions in 2025 to 2026.
| Market | Full range | Typical | Notes |
|---|---|---|---|
| Sydney | 1.8% to 3.0% | 2.0% to 2.5% | Higher median sale price ($1.4m+) pulls effective rates lower in absolute terms. Eastern suburbs and Lower North Shore often quoted at 1.8 to 2.2%; outer west typically 2.2 to 3.0%. |
| Melbourne | 1.6% to 2.5% | 1.8% to 2.2% | Lowest commission rates of the capitals, driven by high median price and intense agent competition in inner and middle ring. Outer suburbs typically 2.0 to 2.5%. |
| Brisbane | 2.2% to 3.0% | 2.5% to 2.8% | Strong middle ground. Inner ring 2.2 to 2.5%; middle and outer rings 2.5 to 3.0%. Tiered commission structures common. |
| Perth | 2.0% to 2.9% | 2.2% to 2.5% | Recovered from extended downturn, fee resistance lower than 2019 to 2022 era. Coastal and northern suburbs sit at lower end of range. |
| Adelaide | 2.5% to 3.5% | 2.7% to 3.0% | Highest typical commission rates of the mainland capitals. Reflects lower median sale price (commission needs to be a higher % to generate viable fee revenue). |
| Hobart | 3.0% to 4.0% | 3.2% to 3.5% | Smaller market, longer marketing campaigns, fewer agents, supports higher rates than mainland capitals. |
| Canberra | 2.2% to 3.0% | 2.5% to 2.7% | Relatively narrow range; auction culture and high median price keep effective rate moderate. Many agencies use tiered structures. |
| Darwin | 2.5% to 3.5% | 2.8% to 3.2% | Small market, fewer competing agents. Commission rates similar to Adelaide. |
| Regional NSW / VIC / QLD | 2.5% to 3.5% | 2.8% to 3.2% | Wider territories, fewer comparable sales, longer marketing campaigns. Rural and lifestyle blocks regularly 3.0 to 4.0%. |
| Rural & lifestyle | 2.5% to 4.0% | 3.0% to 3.5% | Specialist stock-and-station / rural agents charge higher rates reflecting longer campaigns (3 to 9 months) and narrow buyer pool. |
Sales commission rates are negotiable in every Australian jurisdiction (no regulated minimum or maximum). All rates exclude GST unless stated.
Property management side
PM management fees by city
Management fees are charged as a percentage of rent collected. Different agencies quote inc-GST and ex-GST, always check the basis. Tight rental markets (Perth, Sydney since 2023, parts of Brisbane) have pushed PM fees up over the last three years.
| Market | Mgmt fee range | Typical | Notes |
|---|---|---|---|
| Sydney | 7.0% to 10.0% | 7.7% to 8.8% (inc GST) | Highest PM fees of the capitals. Letting fee 1.0 to 2.0 weeks rent (typically 1 week). Routine inspections quarterly. |
| Melbourne | 5.5% to 8.0% | 6.6% to 7.7% (inc GST) | Lower mgmt fee than Sydney but higher letting fee in some agencies (1.5 to 2.0 weeks). Inspections quarterly to six-monthly. |
| Brisbane | 7.0% to 9.5% | 8.25% to 9.0% (inc GST) | Letting fee 1 to 2 weeks rent. Routine inspections quarterly. Lease renewal fees common ($50 to $150). |
| Perth | 7.0% to 10.0% | 8.5% to 9.9% (inc GST) | Tight rental market has pushed fees up over 2023 to 2025. Letting fee 1.5 to 2.5 weeks rent (Perth runs higher letting fees than other capitals). |
| Adelaide | 7.5% to 10.0% | 8.8% to 9.9% (inc GST) | Higher % management fee reflecting lower rent base. Letting fee typically 1.5 weeks rent. Quarterly routines. |
| Hobart | 7.0% to 10.0% | 8.8% to 9.9% (inc GST) | Smaller market; less competitive pressure on PM fees. Letting fee 1.5 to 2.0 weeks rent. |
| Canberra | 6.5% to 8.5% | 7.7% to 8.25% (inc GST) | Government-tenant share supports more stable rents; ACT-specific tenancy rules add cost to managing renewals and inspections. |
| Darwin | 8.0% to 11.0% | 9.0% to 10.0% (inc GST) | Highest typical PM fees of the capitals, driven by smaller market and turnover risk. |
| Regional | 7.0% to 10.0% | 8.0% to 9.0% (inc GST) | Lower density forces more travel time per inspection; PM fees similar to capitals but inspection/travel fees additional in some regions. |
Beyond the headline rate
Letting, inspection, and marketing fees
Headline commission and management fees are just the starting-point. Ancillary fees and disbursements add up, and transparent disclosure on the agency agreement is increasingly expected by both vendors and landlords.
Letting fee (initial)
1.0 to 2.5 weeks rentCharged when a new tenancy is signed. Covers advertising, viewings, application processing, lease preparation, and ingoing inspection. Typically 1 week (Sydney, Melbourne, Brisbane) to 2 weeks (Perth, Adelaide, regional).
Re-letting fee
0.5 to 1.0 weeks rentCharged when an existing tenancy ends and a new tenant is placed. Sometimes the same as the initial letting fee; sometimes discounted for the existing landlord.
Lease renewal fee
$50 to $250Charged when an existing tenant renews their lease. Covers renewal paperwork, rent review, condition check. Some agencies waive this; many charge a flat fee.
Routine inspection fee
$20 to $50 per inspectionCharged per routine inspection (typically quarterly). Some agencies absorb this into the management fee; others charge separately. Disclose upfront on the management agreement.
Ingoing / outgoing condition report
$80 to $250 eachDetailed photographic + written condition report at lease commencement and end. Critical for bond claim defence. Many agencies use third-party inspection software (Inspection Manager, Routine Inspect) with per-report costs.
Tribunal / VCAT / NCAT appearance
$200 to $500 + hourlyCharged when the agency appears on the landlord's behalf at the state tribunal for tenancy disputes (bond, repairs, termination). Hourly rate beyond a base appearance fee.
Marketing / VPA (Vendor Paid Advertising)
$2,500 to $15,000+Sales-side. Vendor-paid campaign covering REA & Domain premium upgrades, signboard, professional photography, floor plan, copywriter, drone, video, social media boost. Inner-city Sydney/Melbourne campaigns regularly exceed $10k.
Auction marketing / auctioneer
$700 to $2,000Separate from VPA, the licensed auctioneer's fee on auction day. Some agencies bundle into commission; many bill separately as a vendor disbursement.
Administration / sundry fee (PM)
$5 to $15 per month per propertySome agencies charge a monthly admin fee covering postage, statements, bank fees, water/utility coordination. Increasingly bundled into the management fee in 2024 to 2026.
How to structure commission
Tiered vs flat: choosing a structure
The structure of the commission can matter as much as the headline rate. Four common structures, each with different incentive properties.
Flat percentage commission
The simplest structure, agency charges X% of sale price regardless of price achieved. Clean, easy to explain, but doesn't give the vendor any reason to push the agent towards a stretch outcome.
Pros
Simple, predictable, easy to compare.
Cons
Agent earns same % at $900k as $1.1m, limited incentive to push past the vendor's reserve.
Tiered (stretch) commission
A base rate up to a reserve price, then a higher rate on the upside. Example: 2.0% up to $900k, then 5.0% on the portion above. Aligns the agent and vendor on getting maximum sale price.
Pros
Strongly incentivises stretch outcomes. Vendors typically prefer this structure when negotiating.
Cons
Reserve setting becomes a negotiation. Agent has incentive to under-quote the reserve so they earn the higher tier on more of the sale.
Flat dollar fee
Fixed dollar commission regardless of sale price, e.g., $15,000 flat. Common for premium fixed-fee disrupter brands and very high-end properties where % commission would be excessive.
Pros
Predictable cost. Removes percentage-vs-price negotiation.
Cons
Vendor and agent have no shared upside on stretch results. Agent's incentive is to sell quickly, not necessarily at the top of the range.
Hybrid: base + bonus
A lower base commission, plus a bonus if specified conditions are met (e.g., sold within 30 days, sold above $X). Useful when vendor and agent disagree on expected price.
Pros
Flexible, can be tailored to vendor priorities.
Cons
Complex to document. Disputes more common at settlement when bonus conditions are interpreted differently.
When (and when not) to discount
When to offer reduced commission
There are legitimate reasons to reduce commission, and one very common trap to avoid.
Internal referral or repeat vendor
Selling for a vendor who has already paid you a commission in the last few years, or who has been referred by a happy past client, is a legitimate basis for a small (5 to 10%) commission reduction.
Multi-property listing
Vendor instructing you on 2+ properties simultaneously, or a developer with multiple lots, can warrant a sliding scale, full rate on the first, reduced on subsequent.
Off-market with motivated buyer in hand
If you have a confirmed buyer (typically from your database or buyer's agent network) and the campaign can be very short, a modest reduction reflects lower marketing and time cost.
Avoid: 'win the listing' discount
Reducing commission purely to win a competitive listing pitch is a trap, discounts compound across your area as vendors talk, and your service standard often unconsciously drops to match the lower fee. Win on service, not price.
Practical tips for principals
Quote inc-GST in the listing presentation
Vendors compare your ‘2.5%’ against a competing ‘2.5% + GST’ without realising they're not comparing like for like. Always quote inc-GST or make ex-GST clear in bold, clarity wins, surprises lose.
Track realised commission, not headline rate
A 2.5% headline rate after fee resistance and discounting routinely realises 2.1 to 2.2%. Track your gross commission divided by total sales pipeline value quarterly, that's your actual rate.
Disclose all PM ancillary fees upfront
Landlord complaints to Fair Trading / CAV / OFT spike when fees aren't disclosed before the management agreement is signed. List every fee, letting, re-letting, lease renewal, inspection, tribunal, on the agreement in dollar or weeks-of-rent terms.
Don't absorb VPA to win listings
Funding the vendor's marketing campaign out of your own pocket is a cash-flow killer and trains vendors to expect it from your next listing. Vendor-paid is the industry standard , there are legitimate ways to support marketing spend (e.g., deferred VPA, marketing finance partners) without absorbing the cost yourself.
Frequently Asked Questions
Why do commission rates differ between cities?
Two main drivers: median sale price and agent density. Sydney and Melbourne have very high medians ($1.4m+ and $900k+ respectively), so even at 2.0% the dollar commission is substantial, agents accept a lower % rate. Adelaide and Hobart have lower medians but similar marketing campaign costs, so they need a higher % to make the fee economically viable. Agent density (more agents = more price competition) pulls Melbourne rates down further.
Are commission rates negotiable?
Yes, there are no statutory or regulated commission rates in Australia (commission deregulation occurred decades ago). Every commission is negotiated between agent and vendor and documented in the agency agreement / appointment to act. Vendors can and should ask for rate justification, but should also recognise that the lowest rate often correlates with the lowest service standard.
What's the typical letting fee in Australia?
1 to 2 weeks rent is the standard range. Sydney and Brisbane typically 1 week. Melbourne, Perth, Adelaide and regional typically 1.5 to 2 weeks. The letting fee covers advertising the property, conducting viewings, processing applications and reference checks, preparing the lease, and the ingoing condition report. Re-letting fees (for the same property to a new tenant) are sometimes discounted to 0.5 to 1 week.
Are the benchmark fees on this page quoted inclusive of GST?
Yes, real-estate agency commission is a taxable supply for GST purposes. Most agencies quote commission rates as 'plus GST' on their listing presentation. Some quote inclusive, check carefully. The same applies to PM management fees, letting fees and inspection fees.
How are sales commissions paid, at exchange or at settlement?
Almost always at settlement, deducted from the sale proceeds by the conveyancer/solicitor and remitted to the agency via the trust account. The agency agreement typically specifies the trigger event (settlement, or specified earlier event). Cash payment of commission before settlement is rare and procedurally awkward.
How often should I review my fee structure?
Annually as a minimum, ideally aligned to your end-of-financial-year planning. Track your actual realised commission rate (gross commission ÷ total sales pipeline value), your management fee yield (PM revenue ÷ portfolio rent), and how those compare to local market benchmarks. If you're consistently 0.5+ percentage points below the local benchmark, you're either under-pricing your service or over-discounting to win listings, both are fixable.
Track your realised fees automatically
OneBookPlus reports realised commission, PM fee yield and ancillary fee revenue per agent, per branch, per period, so you can benchmark your agency against this guide and act on the gaps. Free to start, AUD billing.
Rather look before you sign up? Open a live demo account with real data in it, or compare the AUD plans on the pricing page.
Reviewed by Bishal Shrestha
About the author
Bishal Shrestha
Founder & CEO, OneBookPlus
Bishal spent a decade running digital projects for Australian small businesses before founding OneBookPlus. He writes and maintains these pages, and publishes what OneBookPlus does not do alongside what it does.
Read the founder bioHow this page was researched
Every figure above is either linked to the body that published it or recomputable from the numbers shown on the page. Plan prices come from the OneBookPlus price registry, so the page and the checkout cannot disagree. Everything said about OneBookPlus describes what the product does today, and the page says so where it does not do something.
From the blog
Related reading for real estate
Practical guides and explainers from the OneBookPlus blog, grouped by topic.
Best Real Estate Agency Software in Australia (2026): CRM, Proposals & Commissions
Real estate agency software in Australia for 2026: CRM, digital listing proposals, CMAs and commission tracking, compared for agents.
9 min readRead articleFrom Quote to Paid in One App: The Australian Job Workflow
One landscaping job followed from quote to money in the bank, with the customer, quote, job, invoice, payment and BAS all staying linked.
24 min readRead articleThe Australian Small Business Cash Flow & Late Payments Report 2026
In the March quarter 2026, Australian small businesses waited an average of 24.1 days to be paid and were paid 6.9 days late (Xero Small Business Insights). This fully-sourced report aggregates the latest getting-paid, cash-flow, insolvency and payments-reform figures from Xero, the Payment Times Reporting Regulator, the RBA, ASBFEO, the ABS, CommBank-UNSW and CreditorWatch into one extractable resource.
27 min readRead articleBest Plumbing Software in Australia (2026): Quoting, Invoicing & Job Management Compared
Choosing plumbing software in Australia for 2026: which features matter on the tools, how the main options compare, and quoting to paid in one app.
9 min readRead article
More in this guide
Related resources
Start a Real Estate Agency
8-step founder guide, ABN, GST, agent licence, trust account, PII, software stack, first listings.
Read Start a Real Estate AgencyReferenceReal Estate Licence by State
Class 1/2/AOREB, NSW/VIC/QLD/SA/WA/TAS/ACT/NT licensing pathways, CPD, principal in charge.
Read Real Estate Licence by StateComplianceTrust Account Rules by State
Sales trust vs property-management trust, audit cycles, breach reporting under PSBA/REBA.
Read Trust Account Rules by State