Victoria introduces new house auction reserve laws
Victoria has implemented laws requiring the publication of house reserve prices to stop real estate agents from underquoting to attract buyers. The rules aim to prevent prospective homeowners from wasting time and money on properties they cannot afford [1].
What happened
- Earlier
Some Victorian sellers and agents began voluntarily publishing reserve prices before the law became mandatory [3].
- 1 Oct, 2026
New transparency laws regarding property price statements and reserves take effect [1].
- 16 Oct, 2026
It becomes mandatory to advertise a property's reserve price at least seven days before an auction or fixed-date sale [3].
What you need to know
Reserve prices must be disclosed seven days before an auction [3].
Property price statements now include the number of car spaces and internal floor area [1].
The laws target underquoting, where homes are marketed well below expected sale prices [1].
It is unclear if reserve prices can be changed after they are officially set, as industry leaders report receiving conflicting government advice [1].
Background
Underquoting is generally illegal across Australia, but these new Victorian rules introduce stricter transparency requirements before and after sales [1].
The laws follow investigations into widespread deception in the auction market, where buyers often spent money on building reports for homes they had no chance of winning [3].
Some industry figures argue that a seven-day window is too long and may lead to 'overquoting' or a decrease in the number of homes listed for auction [1], [2].
Questions people ask
What is underquoting?
It is when agents promote a house at a price significantly lower than what the seller expects to receive to create artificial interest [1].
Do agents support these laws?
Opinions are mixed; some say it creates transparency, while others find the rules confusing and inconsistent [1].
Where this came from
[2] afr.com
Victoria’s auction market faces fresh test with reserve price rule
Preview image from afr.com
[3] theage.com.au
Meet the Melbourne home sellers who are already publishing their reserves
Preview image from theage.com.au
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