Victorian Underquoting Laws Strengthen Transparency

Victoria has introduced major changes to residential property sales and underquoting laws, aimed at giving buyers clearer and more timely information about property prices. Most of the new rules commenced on 1 October 2026, with the reserve-price requirements applying to auctions and fixed-date sales held on or after 16 October 2026.

One of the most significant changes is the requirement for real estate agents to publish the seller’s reserve price at least seven days before an auction or fixed-date sale. The reserve must be shown as a single dollar amount, without wording such as “from”, “over” or “starting at”, and all advertising and marketing material must be updated to reflect it. If the reserve price has not been published for the full seven-day period, the auction or fixed-date sale cannot proceed.

The previous Statement of Information has also been replaced by a new Property Price Statement. The new document must provide more detailed information, including key features of the property being sold and key features of the comparable properties used to support the price estimate. It must also be displayed prominently in online advertising rather than being difficult for buyers to locate.

Another important change affects sale-price transparency. Once a residential property sale becomes unconditional, the agent generally has seven days to update the Property Price Statement with the final sold price. The updated statement must then remain publicly available online, free of charge, for at least 18 months, unless an approved exemption applies.

For buyers, these changes could make it easier to understand the true price expectations surrounding a property before committing time and money to an auction campaign. Publishing the reserve a week in advance may reduce the uncertainty buyers sometimes face when an advertised price guide differs significantly from the seller’s actual expectations.

This is particularly relevant in Melbourne’s western growth corridor, where first-home buyers, investors and families often compete across a wide range of price points. Clearer reserve prices and more detailed comparable-sale information could help buyers assess whether a property realistically fits within their budget before arranging finance, inspections or bidding strategies.

The new sold-price disclosure requirement may also improve access to recent local market evidence. Buyers and sellers will have more visibility over actual transaction prices, which can help them compare similar homes and understand how market conditions are changing from suburb to suburb.

For sellers, the reforms place greater importance on establishing realistic pricing strategies earlier in the campaign. Once a reserve price is provided and published, marketing material must be updated accordingly. This could encourage closer communication between sellers and agents when determining the level at which a property is genuinely expected to sell.

Real estate agents will also need to pay closer attention to documentation and advertising compliance. The Property Price Statement must reflect relevant property characteristics and comparable evidence, while outdated advertising needs to be withdrawn when pricing information changes.

For investors and homebuyers in Melbourne’s western growth corridor, the reforms could support more informed decision-making in a market where borrowing capacity, interest rates and affordability remain significant concerns. Better access to reserve prices, comparable properties and final sale results may help buyers avoid unrealistic campaigns and focus on properties that genuinely fit their financial position.

Overall, Victoria’s new laws represent a significant shift toward greater price transparency in residential property transactions. While the rules do not remove competition or guarantee lower prices, they should give buyers, sellers and agents clearer information throughout the sales process and may help reduce some of the uncertainty traditionally associated with auctions and property price guides.