Australia's Real Estate Training Sector Faces Regulatory Reckoning

The convergence of ASQA enforcement actions, tightened qualification standards, and chronic workforce turnover is forcing a fundamental reset in how Australia trains and licenses real estate professionals.

Following years of what NSW Property Services Commissioner John Minns called "a race to the bottom," regulators have launched unprecedented compliance crackdowns—cancelling 25,500+ qualifications from non-compliant RTOs and specifically targeting property services training providers. Meanwhile, the industry struggles with 25-35% annual turnover against a national average of 8%, creating a paradox: massive demand for agents paired with unsustainable attrition.

This regulatory intervention arrives as three major states simultaneously tighten training pathways. Victoria's 2021 reforms increased entry qualifications from 3 to 18 units; NSW implemented new supervision guidelines in July 2024; Queensland introduced mandatory CPD in June 2025—ending its status as the last major state without continuing education requirements. Together, these shifts represent the most significant restructuring of real estate training standards in a decade.

ASQA mounts targeted enforcement against real estate RTOs

The Australian Skills Quality Authority announced in October 2023 it would conduct audits specifically targeting RTOs delivering three real estate qualifications: CPP41419 Certificate IV in Real Estate Practice, CPP51122 Diploma of Property (Agency Management), and CPP40521 Certificate IV in Strata Community Management. ASQA's official statement cited "concerns that graduates from RTOs across Australia... are not being properly enrolled, trained and assessed, or given sufficient information of their legal and licensing requirements."

The federal government has backed this crackdown with substantial funding—$37.8 million allocated to VET quality and integrity initiatives since 2023, including $33.3 million directly to ASQA and $4.7 million in the 2024-25 budget for "enforcement surges." ASQA's new Integrity Unit, established January 2024, has received over 3,200 tip-offs through its public reporting line, with more than half providing actionable intelligence.

While the most dramatic cancellation actions have targeted care and community services RTOs (Luvium Pty Ltd alone had 6,400+ qualifications revoked in October 2024), the enforcement machinery now explicitly encompasses property training. ASQA CEO Saxon Rice stated: "There is no place for any VET provider who seeks to undermine the sector or exploit students." The agency's 2024-25 regulatory risk priorities include shortened course duration, recognition of prior learning fraud, and "non-genuine providers and bad-faith operators"—all concerns voiced by industry leaders about real estate training quality.

NSW Property Services Commissioner John Minns articulated the quality concerns starkly: "There have been concerns from the leading training businesses around Australia... that the quality of training content and assessment is very variable. There is a significant section of the RTO market appearing to be in a race to the bottom, with the quickest, cheapest qualifications they can do to get you out the door in a couple of months with a diploma."

New Standards for RTOs 2025 reshape compliance requirements

Effective 1 July 2025, the Standards for RTOs 2025 introduce strengthened compliance requirements that will affect every real estate training provider. Key changes include:

• Pre-enrolment assessments now mandatory for skills, literacy, numeracy, and digital competency
• Two-year evidence retention for assessment materials (previously six months)
• Strengthened Fit and Proper Person Requirements extending to anyone exercising control or influence over RTO management
• Enhanced student information requirements before enrolment
• Assessment tool review required prior to use for all new or revised materials

The new standards adopt an outcomes-focused approach, requiring RTOs to demonstrate that graduates possess genuine competencies. For real estate RTOs, this means auditors will scrutinise whether completion timeframes align with the Australian Qualifications Framework's volume of learning requirements—directly targeting providers offering "accelerated" diplomas in weeks rather than months.

CPP41419 Certificate IV structure and state variations

The CPP41419 Certificate IV in Real Estate Practice remains the foundation qualification for entering the industry, requiring 18 units of competency nationally: 5 core units plus 13 elective/speciality units. Core units cover professional practice preparation, ethical and legislative frameworks, marketing and communications, and trust account fundamentals.

State licensing authorities have implemented varying requirements based on this national qualification:

Victoria's October 2021 reforms represent the most aggressive tightening—agent's representatives now require the full 18-unit Certificate IV, up from just 3 units previously. This sixfold increase in entry requirements directly addresses concerns about underprepared practitioners.

Queensland's structure uniquely blends qualifications: a full licence requires 19 units combining Certificate IV and Diploma content, specifically including CPPREP5010 (Manage customer service activities) from the Diploma. This integration ensures licensed agents have management-level customer service competencies.

CPP51122 Diploma emerges as career gateway qualification

The CPP51122 Diploma of Property (Agency Management) comprises 12 units (7 core, 5 elective) and has become the de facto threshold for agency leadership. It superseded CPP51119 with full transition completed by 19 April 2024. Core units emphasise compliance management, trust account oversight, ethical practice, workplace safety, team management, operational finances, and strategic business planning.

This qualification unlocks critical career progression:

• NSW Class 1 Licence: Authority to be Licensee in Charge, approve trust account withdrawals, operate independently
• Victoria Licensed Estate Agent: Permission to own/operate an agency, supervise representatives
• Western Australia Real Estate Agent Licence: Enables opening an agency and employing sales representatives
• Queensland Full Licence: Combines with Certificate IV units for principal licensee capabilities

Industry body RTOs (REIQ, REINSW, REIV) position the Diploma as essential for agency directors, principals, and licensees in charge. Course delivery ranges from $1,198 to $6,500 depending on provider and delivery mode, with 12-month maximum enrolment periods typical for online self-paced options.

Workforce data reveals structural retention crisis

The Australian real estate workforce has grown substantially—from 83,900 workers in 2014 to 108,700 in 2024, a 29.6% increase according to KPMG analysis—yet struggles with chronic retention problems. Key workforce statistics paint a concerning picture:

• 25% average staff turnover across real estate in FY2023 (Macquarie Business Banking)
• 35% turnover specifically in property management
• 88% of new agents quit before reaching five years in the industry
• Sales workers show 9.9% job mobility, significantly above the 8% national average
• Only half of sales workers who changed jobs stayed within the same occupational group

Property management faces particular pressure. REINSW has called for federal government intervention, noting over 3,000 property manager roles advertised on SEEK alone. One-third of Victoria's property managers left the industry in a single year according to REIV estimates. MRI Software surveys found a quarter of property managers intend to leave their jobs and the industry—double the rate from 2018.

Causes of this turnover cluster around income instability from commission-based compensation, insufficient mentorship for new entrants, demanding work-life balance, intense competition for listings, and managers who are themselves practitioners unable to focus on staff development.

Training provider market shows quality stratification

The RTO market for real estate qualifications demonstrates significant quality stratification. Price variation is extreme—Certificate IV courses range from $550 to $2,850+ among private providers, while TAFE and industry body programs often cost more but deliver face-to-face or hybrid instruction.

High-quality providers differentiate through industry body affiliation, experienced trainers still practising in real estate, face-to-face and blended delivery options, employment placement assistance, and robust assessment practices. REIQ data indicates agencies are 60% more likely to hire their graduates versus competitors.

Warning signs of problematic providers include:

• "Fast-track" or "accelerated" completion promises (weeks instead of months)
• Purely online self-paced delivery with minimal trainer contact
• Extra fees for assessment resubmissions
• Unrealistic completion timeframes inconsistent with AQF requirements
• Heavy reliance on questionable RPL processes

The REIQ-REISA partnership launched in August 2024, with Queensland's institute delivering training in South Australia, represents emerging consolidation among quality providers seeking geographic expansion. Meanwhile, the market remains fragmented with numerous small online-only RTOs competing primarily on price.

State licensing reforms tighten training pathways

Each major state has implemented distinct reforms affecting training requirements:

NSW (July 2024 onwards)

New Supervision Guidelines require licensees in charge to maintain training plans for assistant agents. CPD requirements increased to minimum 5 hours annually with mandatory interactive delivery for compulsory topics from 2025-26—purely online self-paced training will no longer satisfy requirements for compulsory topics. A new mandatory underquoting course applies to residential sales agents. The October 2024 Residential Tenancies Amendment Act creates additional training requirements around abolished no-grounds evictions and new pet ownership rules.

Victoria (2021 reforms, ongoing)

The most stringent entry requirements nationally—full 18-unit Certificate IV for agent's representatives, plus both Certificate IV and Diploma for licensed estate agents. Uniquely, Victoria does not mandate annual CPD, though industry bodies offer voluntary programs. Estate agent licences are ongoing rather than time-limited, requiring no renewal once issued.

Queensland (June 2025)

Introduction of mandatory CPD effective 6 June 2025 represents Queensland's most significant training reform in years. Agents must complete 2 approved CPD sessions annually, with Type 1 sessions linked to nationally accredited qualifications and Type 2 sessions covering communication, ethics, and business skills. REIQ advocated for these requirements after Queensland remained the last major state without mandatory continuing education.

Market conditions amplify workforce pressures

Industry structural challenges compound training and retention difficulties. CoreLogic's 2024 survey found 41% of agencies identified low housing stock as their most significant stressor, with for-sale listings nearly 30% lower than a decade ago. Some 71% of respondents reported flat or declining profit margins, with 63% citing staff costs and 57% citing operating costs as key pressures.

Despite these headwinds, demand for real estate services remains strong. "Real Estate Agent" ranked as Australia's most-searched job with 37,300+ average monthly Google searches in 2023-24. SEEK data shows real estate and property job ads rose 14.2% year-on-year. Population growth of 446,000 net migration in FY2024 continues driving housing demand.

Employers increasingly prioritise transferable skills—negotiation, customer service, digital fluency, resilience—over industry-specific experience. Cross-industry recruitment from finance, retail, and technology has become common. PropTech literacy (CRM systems, virtual inspections, AI-assisted marketing) now features prominently in job requirements. Rather than expanding external hiring, agencies are investing more heavily in upskilling existing staff.

Conclusion: Regulatory intervention meets industry necessity

The Australian real estate training sector stands at an inflection point. ASQA's targeted enforcement, the new Standards for RTOs 2025, simultaneous state-level reforms, and $37.8 million in federal funding signal genuine regulatory commitment to addressing quality concerns that industry leaders themselves have articulated.

For training providers, the message is unmistakable: compliance shortcuts that once allowed "diploma in two months" operations face escalating scrutiny and deregistration risk. For agencies, the qualified talent pipeline they depend upon is being rebuilt with higher entry standards—particularly in Victoria—while retention challenges demand greater investment in staff development and career pathways.

The coming years will reveal whether these interventions achieve their intended outcome: producing genuinely competent graduates who remain in the industry long enough to justify training investments. With 88% of new agents historically exiting before five years, the training quality problem and the retention problem may ultimately prove inseparable—and both require the kind of structural reset now underway.