The Victorian government has announced plans to introduce legislation requiring real estate agents to publicly disclose the minimum price acceptable to the vendor—known as the true reserve price—at least seven days before an auction or fixed-date sale. Properties that fail to comply would not be permitted to proceed to auction or sale. If passed by state parliament, the move would be the first of its kind in Australia, marking a significant step in Victoria’s efforts to crack down on deliberate underquoting in the property market.
Deliberate underquoting is widespread in Victoria’s housing sector, with agents often advertising price guides below the vendor’s reserve to attract bidders, only for final sale prices to exceed advertised ranges, prompting complaints. The government established a taskforce in late 2022 to investigate and address the issue.
Victorian Consumer Affairs Minister Nick Staikos said the new policy will improve transparency in property transactions and ensure homebuyers are treated fairly when making major financial decisions. He noted it would particularly help first-home buyers avoid wasting time attending auctions beyond their budget.
However, the proposal has drawn mixed reactions from industry and political figures. Real Estate Institute of Victoria (REIV) president Toby Balazs argued that focusing solely on reserve price disclosure is insufficient to resolve systemic issues in the market, and called for broader reform to balance transparency and vendor returns. Opposition leader Jess Wilson said requiring prices to be disclosed seven days in advance would do little to improve housing affordability and would instead add administrative burden. The Greens argued the rules should go further by requiring agents to disclose reserve prices immediately when a property is listed, to maximise information transparency.
The Victorian government emphasised that the bill will be introduced to parliament next year. If passed, it is expected to change auction practices, reduce disputes caused by information asymmetry, and provide more reliable reference points for first-home buyers and general purchasers. The new rule would mark an important milestone in improving transparency in Victoria’s property market.