Victoria property market transparency rules target underquoting at auctions

Traders Union
All News
Business & Wealth
Victoria property transparency rules

Highlights

Victoria implemented new property laws requiring agents to disclose reserve prices one week before auctions and publish sale prices for 18 months.
Industry leaders criticize the rules as inconsistent and potentially confusing, with Ray White Group citing conflicting advice on whether reserved prices can be changed post-disclosure.
Victoria's property market remains weak, with median prices now below every Australian capital except Hobart and Darwin due to falling values and diminished investment appeal.

Auction disclosure rules reshape sales process

As reported by ABC News, the Victorian laws took effect at the start of the month and are being watched closely across Australia as a more aggressive attempt to increase price transparency before and after residential property sales. The measures require agents to disclose the reserve price at least a week before auction and to publish the final sale price for at least a year and a half after the transaction.

The policy is designed to reduce underquoting, a practice in which properties are marketed well below the level they are expected to sell for in order to draw in more buyers. State Minister for Consumer Affairs Paul Edbrooke said buyers were tired of spending weekends pursuing homes that were never realistically within reach.

Industry representatives say the objective is valid but the drafting is problematic. Real Estate Institute of Victoria chief executive Toby Balazs said buyers should receive guidance on the likely selling range of a property, but not necessarily a precise reserve figure fixed well ahead of auction.

Industry concerns and broader market impact

Independent property economist Cameron Kusher said he supports stronger action against underquoting but does not believe Victoria's model will solve the issue. He said declaring the reserve on the morning of the auction, or before bidding starts, would better reflect changing bidder interest and seller expectations.

Buyer's advocate Cate Bakos said the new rules could create complications for both vendors and purchasers, even though underquoting remains a significant problem. She also warned that the expanded property price statement could leave buyers with a false sense of confidence about how much they really know.

Ray White Group managing director Dan White said the laws are inconsistent and confusing for buyers, sellers and agents, adding that the company received conflicting government advice on whether a reserve can be changed after it is set. While New South Wales is also tightening enforcement against underquoting, no other Australian state has said it plans to adopt the same approach as Victoria.

The changes also arrive as Victoria's housing market has been under pressure relative to other jurisdictions. Property prices in the state have been falling, or rising more slowly than elsewhere in recent years, and added supply, taxes and rule changes that have weakened investment appeal have pushed median prices below every capital city except Hobart and Darwin in recent data.

Our earlier article on India’s alternative accommodation market growth explained how rising tourism demand is straining traditional hotel room supply, accelerating the shift toward homestays, villas, and holiday homes. It highlighted rapid expansion in digital listings and booking activity, while noting that inconsistent service standards at smaller operators remain a key challenge as the segment scales.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.