Flashy real estate agents preying on buyers in an aggressive property market are about be slugged with more than $100,000 in fines if they mislead them on the real prices of a home.

The crackdown on unlawful underquoting in Australia's most expensive property market is hoped to boost buyer confidence.

Under proposed reforms, maximum penalties will soar from $22,000 to $110,000 to remove the financial incentive for agents to dupe anxious clients.

Agents making more than that penalty will also come under the hammer, with fines of three times their commission.

"Underquoting is when you set an unrealistic price and hoping to watch it grow - misleading buyers, wasting their time, wasting their money and taking them on an emotional, demoralising roller-coaster," Fair Trading Minister Anoulac

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