{"id":611832,"date":"2026-09-25T23:12:12","date_gmt":"2026-09-25T23:12:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/611832\/"},"modified":"2026-09-25T23:12:12","modified_gmt":"2026-09-25T23:12:12","slug":"nsw-crackdown-on-ai-doctored-real-estate-listings-hits-mural-covered-wall-housing","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/611832\/","title":{"rendered":"NSW crackdown on \u2018AI-doctored\u2019 real estate listings hits mural-covered wall | Housing"},"content":{"rendered":"

The New South Wales<\/a> government\u2019s crackdown on \u201cAI-doctored\u201d rental listings has hit a wall, after it made an example of a supposedly manipulated ad that turned out to be a genuine photograph of a $5,000 courtyard mural of Bondi beach.<\/p>\n

In a media release on Friday announcing protections against misleading rental ads, the state government provided a link to a property in Leichhardt, claiming it was an \u201cAI-doctored rental listing in Sydney\u2019s inner west\u201d.<\/p>\n

But the listing agency IB Property denied the images were altered.<\/p>\n

A spokesperson confirmed the photograph showed a mural of Bondi beach on an internal courtyard wall visible through the unit\u2019s windows, rather than a false digital depiction of coastal views.<\/p>\n

\u201cWe can confirm that the image has not been altered or digitally generated using AI, Photoshop or any other image-editing software,\u201d the spokesperson said.<\/p>\n

The apartment\u2019s original view, when listed in August 2014. Photograph: realestate.com.au<\/p>\n

Leichhardt is about 12km away from Bondi beach.<\/p>\n

When Guardian Australia visited 2\/14 Norton Street, the artwork was not visible from the street. IB Property explained the mural sits within an internal courtyard and provided photos taken inside the unit confirming it remains in place.<\/p>\n

\u201cThe mural was commissioned and paid for by the landlord at a cost of approximately $5,000, and we can also confirm that there are no plans for it to be removed,\u201d the spokesperson said, adding that the property was leased in February 2026 and had not been advertised since.<\/p>\n

A photo from 2026 showing a different view from the kitchen windows. Photograph: IB Property<\/p>\n

The better regulation and fair trading minister, Anoulack Chanthivong, whose office issued the media release, didn\u2019t respond directly to questions from Guardian Australia about the mural, but issued a subsequent statement on Friday afternoon.<\/p>\n

\u201cEvery renter knows the frustration of seeing a property online, only to turn up and find it looks nothing like the listing,\u201d Chanthivong said.<\/p>\n

\u201cThese laws are about putting an end to misleading practices and making sure renters get a fair go. We will always stand on the side of renters.\u201d<\/p>\n

Tackling \u2018housefishing\u2019<\/p>\n

Despite the mix-up, the new laws target an increasing issue.<\/p>\n

Under the legislation, real estate businesses in NSW will face fines of up to $22,000 for failing to disclose digitally altered or AI-generated property images.<\/p>\n

The legislation targets the rapid rise of \u201chousefishing\u201d<\/a> \u2013 where digital alterations distort the true size and condition of a home.<\/p>\n

NSW fair trading minister Anoulack Chanthivong says \u2018we will always stand on the side of renters\u2019. Photograph: Bianca de Marchi\/AAP<\/p>\n

Chanthivong said the new laws would establish strong protections against misleading property marketing and support ethical AI use. The regulations take effect in early 2027.<\/p>\n

Virtual staging v distorting reality<\/p>\n

The legislation arrives as artificial intelligence embeds itself in property marketing nationwide.<\/p>\n

Tim McKibbin, the chief executive of the Real Estate Institute of NSW, said generative AI complicates pre-existing digital enhancement in the industry.<\/p>\n

\u201cThis technology has been available for some years now \u2013 people have used Photoshop,\u201d he said. \u201cPeople were removing trees and removing telegraph poles \u2026 clearly that is false and misleading.\u201d<\/p>\n

McKibbin draws a line between virtual staging and false advertising.<\/p>\n

\u201cI\u2019ve seen instances where agents have put furniture into the photographs. Now, that is merely giving you an indication of what you could do,\u201d he said.<\/p>\n

Stewart Bunn, of First National Real Estate, said consumer trust was being tested by poor industry examples, referencing a 2024 instance where an LJ Hooker branch used AI to generate a listing with nonexistent schools<\/a>.<\/p>\n

\u201cWe have seen examples across the industry where AI-generated images have depicted renovations that have not occurred, furnishings that create an unrealistic impression of scale, landscaping that does not exist or finishes that materially differ from the actual property,\u201d Bunn said.<\/p>\n

\u201cThe best practice is simple: if a buyer would be surprised by what they see when they arrive at the property, the advertising has gone too far.\u201d<\/p>\n

AI \u2018hallucinations\u2019<\/p>\n

An RMIT University report<\/a> led by Dr Leah Li, funded by the Australian Property Institute, found a \u201csignificant lack of sector-specific AI frameworks to guide responsible AI practice within the property profession\u201d.<\/p>\n

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Public confidence remains fragile: a 2026 Cotality<\/a> study showed only 40% of Australians trust AI-generated outputs, compared with 62% in Canada, 52% in the US, and 46% in the UK.<\/p>\n

Dr Shuai Wang, a research fellow at the University of Queensland, said generative AI systems prioritise visual appeal over accuracy. In real estate, this can manifest as \u201challucinations\u201d.<\/p>\n

\u201cAI hallucinations can occur when AI-generated images introduce features that were never part of the property,\u201d Li said, fundamentally changing a prospective tenant\u2019s perception of \u201csize, layout, condition, or amenity\u201d.<\/p>\n

Leo Patterson Ross, the chief executive of the Tenants\u2019 Union of NSW, said deceptive imagery could artificially inflate rental markets \u201cby inflating the number of people who appear interested in a place and increasing pressure on someone to rush to put in an application or even offer above the advertised rent\u201d.<\/p>\n

Patterson Ross said stricter measures were necessary, rather than just disclosure. \u201cThe bill only requires disclosure of the use of digital alterations. We think any use of imagery that misrepresents the property should be disallowed.\u201d<\/p>\n

Li said a long-term solution would require national coordination combining \u201ctransparency requirements, professional accountability, industry standards, regulatory oversight and consumer education\u201d.<\/p>\n

\u201cTrust does not come from simply adopting AI; trust comes from transparency about how AI has been used and confidence that it is being used responsibly.\u201d<\/p>\n

\u2018Haunted houses with a digital paint job\u2019<\/p>\n

For tenants navigating tight rental markets, AI distortion has added a frustrating layer of deception.<\/p>\n

Roxanne Gardiner, 26, said AI-generated imagery was \u201crife\u201d during her search for a rental in Brisbane\u2019s eastern suburbs.<\/p>\n

\u201cI was constantly getting scammed by listing photos,\u201d she said. \u201cWhat\u2019s so embarrassing is we didn\u2019t even realise one of the first houses we saw was AI until we rocked up there.<\/p>\n

\u201cThe AI furniture is not accurate to the rooms and would usually make them look bigger than they were.\u201d<\/p>\n

Beyond virtual staging, Gardiner observed artificial greenery and soft lighting that changed the true character of a home.<\/p>\n

\u201cIt feels cheap \u2026 lazy and insulting,\u201d she said. \u201cWe just stopped going to AI listings, period. We started asking: \u2018What are they compensating for?\u2019\u201d<\/p>\n

Gardiner eventually signed a lease on an unedited property within three days of manually filtering out AI-altered ads.<\/p>\n

Matt Stitt, 25, faced similar issues searching in south Brisbane.<\/p>\n

\u201cListings had completely replaced floorboards to look new, edited in area rugs that near-covered entire rooms,\u201d he said. \u201cIt was such a waste of time seeing these haunted houses with a digital paint job.\u201d<\/p>\n

Crackdown on data collection and hidden fees<\/p>\n

The NSW legislation also protects privacy for more than 2.3 million renters by curbing excessive data harvesting. Landlords and property managers must use standardised application forms, banning requests for personal photos, social media handles, tattoo details or children\u2019s information.<\/p>\n

Sensitive identity documents, such as driver\u2019s licences and passports, will only be collected from the single preferred applicant prior to lease signing, eliminating roughly 187,000 document collections annually, according to the government.<\/p>\n

Penalties for privacy breaches will reach up to $11,000 for individuals and $49,500 for corporations. The legislation also mandates the disclosure of embedded utility networks upfront, so tenants know if they\u2019ll be locked into a gas or electricity supplier.<\/p>\n

Chanthivong said privacy protections built on broader rental reforms, including fee-free payment options and ending no-grounds evictions.<\/p>\n

\u201cWhether you have a tattoo, or what school your kids go to, is not relevant to whether you\u2019ll be a good tenant.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The New South Wales government\u2019s crackdown on \u201cAI-doctored\u201d rental listings has hit a wall, after it made an…\n","protected":false},"author":2,"featured_media":611833,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,145],"class_list":["post-611832","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-new-zealand","tag-newzealand","tag-nz","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/611832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=611832"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/611832\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/611833"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=611832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=611832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=611832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}