Victorian homebuyers could pay more under Labor’s proposed auction law shake-up, with industry figures warning forced reserve price disclosure may reduce competition and push more Melbourne sellers away from public auctions.
Victorian homebuyers are being warned they could be slugged with higher prices under Labor’s controversial crackdown on Melbourne auctions.
Industry experts say the Allan government’s plan to force sellers to reveal reserve prices before auction could backfire by encouraging sellers to set higher expectations, reducing competition and making homes harder to buy.
The government is preparing to introduce Australian-first laws requiring reserve prices to be published at least seven days before an auction or fixed-date sale.
RELATED: Fitness influencers plot huge move after waitlist surge
Portelli’s wild new move for diesel drivers
Melb set for grim $1m house price crash milestone
It also plans to force sold prices to be disclosed once a sale becomes unconditional.
While sellers would have to organise and pay for building and pest inspections under legislation to be introduced in 2027 if Labor retains government after the November state election.
Industry Insider Property Advocates director and vendors advocate Andrew Date said buyers might think reserve disclosure would help them, but it could have the opposite effect.
“Buyers will think that it’s good for them, but the reality is reserve prices might just be set a lot higher than what they would have been in the past,” Mr Date said.
“Therefore, they might have to pay more.”
Industry Insider Property Advocates director Andrew Date warned forced reserve price disclosure could make Melbourne auctions messier and lead vendors to set higher reserves.
Mr Date said the reserve rule risked making Victoria’s auction system messier and less flexible, because sellers could currently change their reserve before an auction, during an auction and after a property passed in.
“If these rules come in and they have to disclose their auction reserve, then effectively they can’t change it,” he said.
“I’ve got no idea how it’s going to work.”
The vendors advocate said Melbourne had long been the “auction capital of the world”, but fewer sellers could choose to sell publicly if the rules became too restrictive.
“You’re changing the fundamentals of how people have been buying and selling for hundreds of years,” he said.
The Allan government says its Victorian auction reforms are designed to make buying a home fairer for young Victorians and families. Picture: NewsWire/ David Crosling
“It’s going to make things more complex and, if anything, it’ll make fewer people sell, therefore fewer transactions will happen in general.”
He said more sellers could shift towards private sales, expressions of interest or off-market campaigns to avoid being locked into an early reserve.
Mr Date said forced sold price disclosure was less disruptive than reserve disclosure, but would still affect prestige sellers who wanted privacy, as well as agents who used undisclosed results to generate calls from buyers and potential sellers.
Matthews Real Estate director John Matthews said Melbourne vendors could lose flexibility under proposed auction laws forcing reserve prices to be revealed before sale day.
Matthews Real Estate director John Matthews said the reforms would increase accountability, but would also strip sellers of flexibility late in a campaign.
“You’re going to go to an auction knowing what the reserve is,” Mr Matthews said.
“If there are multiple buyers prepared to pay that, it can still go higher.
“But if the auction reserve is too high, you can easily lose all your interest in the last week as well.
“It’s going to take out the flexibility sellers have on the day to pivot up and pivot down depending on how the campaign is going.”
Mr Matthews said agents could start withdrawing or postponing more auctions if buyer interest was weak before a reserve had to be disclosed.
“There’s already a little bit of that creeping through,” he said.
“I have noticed auctions, particularly from competitors, being withdrawn and not even going ahead on the day.”
The Matthews director is preparing to take 40 Shaw St at Niddrie in Melbourne’s northwest to auction with a $1.4m-$1.54m price guide, said withdrawn auctions should be counted in clearance rate reporting because it would give a more accurate picture of the market.
Consumer Affairs Minister Paul Edbrooke said Labor’s auction reforms would stamp out underquoting by forcing reserve prices to be published seven days before auction. Picture: NewsWire/Ian Currie
Consumer Affairs Minister Paul Edbrooke said the reforms were needed to protect young Victorians and families from underquoting.
“Underquoting isn’t fair and it’s young Victorians and families paying the price,” Mr Edbrooke said.
“That’s why we’re stamping it out by requiring reserve prices to be published at least seven days before an auction.
“We’re also making buying a home fairer and easier by requiring the sold prices of homes to be disclosed, and saving home buyers thousands on costly building and pest inspections.”
Opposition spokesman Tim McCurdy warned Labor’s auction reforms could reduce competition, increase pass-ins and make it harder to sell Victorian homes under the hammer.
Opposition spokesman Tim McCurdy said Labor’s auction changes would make it harder to sell by auction.
“The Victorian Labor government’s new rules for auctions is making it harder to sell a property by auction,” Mr McCurdy said.
He said the underquoting crackdown had gone too far, was reducing competition and would increase the risk of homes passing in.
Mr McCurdy said the opposition would review the reforms if elected, warning Victoria’s auction system could “die in the long term” if the balance between buyer protection and vendor flexibility was not corrected.
What’s changing in Victoria’s property market
November 2025
The Allan government announced Australian-first plans to force vendors to disclose their reserve price before auction or fixed-date sale.
2026
Legislation is expected to be introduced requiring reserve prices to be published at least seven days before auction or fixed-date sale.
2026
The government also plans to introduce laws forcing sold prices to be publicly disclosed once a sale becomes unconditional.
November 2026
Victorians go to the state election. Labor’s broader reform package, including the inspection changes, depends on the government being re-elected.
2027
If Labor retains government, legislation will be introduced requiring vendors to organise and pay for building and pest inspection reports, which would then be made available to prospective buyers.
Already in place / ongoing
Consumer Affairs Victoria’s underquoting task-force continues to police price guides, Statements of Information and comparable sales used in property campaigns.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Block 2026 leak: New contestants revealed
Scott Cam’s secret $353bn Block ultimatum
Photos expose secret Block bombshell move
david.bonaddio@news.com.au
English (US) · 