Victoria is set to overhaul its real estate rules by introducing new laws that will force agents to publicly disclose a property’s reserve price at least seven days before auction. The reform aims to stamp out underquoting and create a fairer market for buyers, especially first-home buyers.
Key Takeaways
- New laws will require agents to publish the reserve price at least 7 days before auction or fixed-date sale.
- Victoria will become the first state in Australia with this level of transparency.
- Properties cannot legally be sold unless the reserve price has been disclosed.
- The reforms aim to reduce underquoting, which disproportionately impacts first-home buyers.
- Industry groups support transparency but warn the reform should be part of a broader package, not a standalone fix.
New Laws to Crack Down on Underquoting
The Victorian Government has announced new property laws designed to curb underquoting — the practice where agents price a property lower than the expected sale price to boost buyer interest.
Reserve Prices Must Be Disclosed
Under the proposed legislation:
- Real estate agents will be required to publicly reveal the owner’s reserve price
- Disclosure must occur at least seven days before auction
- If no reserve price is disclosed, the property cannot legally be listed for sale
Consumer Affairs Minister Nick Staikos said the practice remains widespread and harmful, especially for younger buyers.
“The tragic thing about underquoting is that it is often young, first-home buyers who are the victims… This is a massive reform. It’s nation leading.” — Nick Staikos, Consumer Affairs Minister
Why the Government Is Acting
Premier Jacinta Allan said underquoting wastes time, money, and emotional energy for buyers who attend multiple auctions only to find the real price far exceeds the guide.
The aim of the reform is to make the market fairer, more transparent, and more accessible, particularly for the younger generation struggling with affordability.
Industry Concerns About the New Laws
The Real Estate Institute of Victoria (REIV) has welcomed transparency but cautioned that reform should be comprehensive.
REIV chief executive Tony Balazs said reserve disclosure is not a silver bullet:
“This announcement is an overcorrection… It needs a more considered approach.”
They argue that:
- Reserve transparency must be paired with broader consumer reforms
- Vendors still need protection to achieve their best sale price
Government Response to Industry Feedback
Minister Staikos said the seven-day window gives sellers time to make a fully informed decision about their reserve price and gives buyers a realistic period to assess affordability.
“My job… is to achieve fairness and equity for all Victorians, and there’s something inherently unfair about underquoting.”
The legislation will be introduced to Parliament next year, with strong indications it will pass.
Final Thoughts
Victoria is taking a bold national lead on tackling underquoting. If implemented as planned, the reforms could significantly reshape auction culture, reduce buyer frustration, and bring greater fairness to the property market — though industry bodies warn that a holistic reform package is still needed.
