The New South Wales government recently announced new protections against misleading rental advertisements, but its example of an "AI-doctored" listing was incorrect. The government linked to a property in Leichhardt, claiming its images were manipulated by AI. However, the listing agency, IB Property, stated the photograph showed a genuine $5,000 mural of Bondi beach in an internal courtyard, not a digital alteration.
IB Property confirmed the image was not altered using AI, Photoshop, or other editing software. The mural, commissioned by the landlord, is visible through the unit's windows and remains in place. The property, located about 12km from Bondi beach, was leased in February 2026 and has not been advertised since.
Despite the mix-up, the new legislation aims to combat "housefishing," where digital alterations distort property images. Under these laws, real estate businesses in NSW face fines of up to $22,000 for failing to disclose digitally altered or AI-generated property images. The regulations are intended to establish strong protections against misleading marketing and support ethical AI use, taking effect in early 2027.
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The New South Wales government incorrectly cited a real estate listing with a genuine mural as an "AI-doctored" image, despite the agency confirming it was an unaltered photograph. This incident occurred while the government announced new laws to fine real estate businesses up to $22,000 for using undisclosed digitally altered or AI-generated property images, targeting misleading practices in rental advertising.