Victoria is preparing for a major shift in how homes are sold, with the Allan Government unveiling a proposal that would require real estate agents to publish a property’s reserve price at least seven days before an auction. The plan, announced on 20 November, is being pitched as a direct answer to years of frustration over underquoting in the state’s housing market.
Under the proposal, agents and vendors would need to disclose the reserve a full week in advance. If they fail to do so, the property cannot be offered for sale at the auction. Consumer Affairs Minister Nick Staikos said the measure is designed to cut out lowball price guides that draw buyers into campaigns they were never realistically part of. “The tragic thing about underquoting is that it is often young, first home buyers who are the victims… we think this will go a long way to help stamp it out,” he said. He described the change as “a massive reform… nation leading”.
The Government argues that setting and publicising a reserve early provides clarity to buyers and forces campaigns to run on accurate expectations rather than guesswork. Premier Jacinta Allan framed the move as part of a broader push to “make housing fairer” and improve the chances of younger buyers entering the market.
Reaction from the industry has been mixed. The Real Estate Institute of Victoria has acknowledged that compulsory reserve disclosure could “improve transparency for buyers”, yet its chief executive Toby Balazs warned against an “overly narrow and reactive approach”. He cautioned the one week rule may be “disproportionate” and risk disadvantaging vendors, noting that the Institute is seeking a “more nuanced regulatory response”.
While some agents remain wary, many buyers’ advocates have backed the proposal. Cate Bakos, President of the Real Estate Buyers Agents Association of Australia, said “it would be the biggest reform she had ever seen”, adding it would help buyers who are unsure about a vendor’s expectations to make better decisions in the crucial final week. She believes it could even prompt early offers. “We will always see homes sell above reserves… it will not extinguish auction activity or take away Melbourne’s crown as the auction capital.”
Consumer advocates point to longstanding examples of misaligned price guides shaping buyer behaviour. Property professional Patrick Bright said the new requirement would help buyers avoid spending money on inspections and reports for homes they cannot afford. “It is unfair to entice people to come to an auction and spend money, time and energy when the truth is the reserve is set at a price where they were never even in the running,” he said. Melbourne house-hunter Clovelle Car recounted attending an auction where bidding passed the guide yet still fell short of a hidden reserve. “Underquoting is not just a waste of people’s time and money, but also comes at an opportunity cost,” she said.
Some veteran agents have been calling for reserve disclosure for decades. John Keating, who has published his vendors’ reserves since the 1980s, welcomed the proposal as “a huge breakthrough for transparency”, though he argued that waiting until a week before the auction may still leave room for misleading guides early in the campaign.
The reform is set for consultation in 2026, with legislation to follow. Its impact on auction behaviour, buyer confidence and vendor strategy will depend on how the rule is framed in law and how the market adapts. For now, the move signals an overdue attempt to close a gap in Victoria’s already strict underquoting regime and give buyers a clearer path through one of the toughest housing markets in the country.
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