From 17 November 2026, NSW real estate agents must follow new requirements when selecting comparable property sales to support an estimated selling price (ESP).
One important distinction is whether the property is located in a metropolitan or non-metropolitan area, as this determines how far back and how far away agents must search for comparable sales.
But metropolitan doesn't just mean Sydney.
What is classified as metropolitan?
Under section 12A of the Property and Stock Agents Regulation 2022, the following 36 local government areas (LGAs) are classified as metropolitan for the purposes of the underquoting requirements:
Bayside, Blacktown, Blue Mountains, Burwood, Camden, Campbelltown, Canada Bay, Canterbury-Bankstown, Central Coast, City of Newcastle, City of Sydney, City of Wollongong, Cumberland, Fairfield, Georges River, Hawkesbury, Hornsby, Hunters Hill, Inner West, Ku-ring-gai, Lane Cove, Liverpool, Mosman, North Sydney, Northern Beaches, Parramatta, Penrith, Randwick, Ryde, Strathfield, Sutherland, The Hills Shire, Waverley, Willoughby, Wollondilly and Woollahra.
Every other area of NSW is classified as non-metropolitan for these requirements.
This means Newcastle, Wollongong and the Central Coast are classified as metropolitan, while nearby local government areas such as Lake Macquarie, Maitland, Port Stephens and Shellharbour are classified as non-metropolitan. Even neighbouring council areas can have different comparable sales search requirements.
Why does it matter?
The classification determines the initial search requirements for comparable sales.
Metropolitan properties: Agents must search for properties sold within 2 kilometres during the previous six months. If fewer than three comparable properties are identified, the search period must extend to 12 months, using the same 2-kilometre radius.
Non-metropolitan properties: Agents must search for properties sold within 5 kilometres during the previous 18 months.
Agents must identify the three most comparable properties, where available, taking into account factors such as location, size, condition, layout and features.
Where fewer than three genuinely comparable properties are identified after completing the required search, agents must document the reasons. They should not select unsuitable properties simply to make up the numbers.
Check the LGA before starting your appraisal
An important consideration for agents working across council boundaries is that neighbouring suburbs may fall into different classifications.
For example, a property in Newcastle falls within the metropolitan search requirements, while a property in neighbouring Lake Macquarie falls within the non-metropolitan (regional) requirements.
Before determining an ESP, agents should confirm the property's local government area and apply the appropriate comparable sales search requirements.
The classification is determined by the LGA specified in the Regulation, not whether the property is generally considered metropolitan or regional.
For further information, refer to section 12A and sections 12C–12E of the Property and Stock Agents Regulation 2022, as amended by the Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Regulation 2026.