Victoria’s real estate agents will be mandated to disclose the reserve price of a property at least seven days before auction, under new laws announced by Consumer Affairs Minister Nick Staikos.
The move aims to crack down on underquoting, which Staikos described as “dishonest, unethical, and cruel.”
“Buying a home is one of the biggest financial decisions you are ever likely to make, and underquoting is dishonest, it is unethical, and it is cruel,” Staikos said.
“The main victims of underquoting are young, prospective first-home buyers who have been lured into a sales campaign where all along, they couldn’t afford that property in the first place. Meanwhile, in many cases, they have actually spent money on pest inspection reports, on building inspection reports, and sometimes on legal work.”
Under the new regime, agents must update all marketing materials to reflect the reserve price and cannot use previous advertising that omits it.
The legislation also prevents changing the reserve after the seven-day period before auction.
Victoria has issued more than 200 infringements totalling over $2.3 million since establishing an underquoting task force three years ago.
Staikos’ reforms follow nearly a decade of stricter laws aimed at transparency, with NSW announcing a similar model last week.
Staikos emphasised that the changes would protect buyers from misleading pricing tactics and make the market fairer.
The laws are expected to be introduced in mid-2026.
Source: AFR.
