Proposed Victorian property reforms could force buyers and sellers to wait before signing some early pre-auction deals.
The Victorian government is facing a real estate revolt over proposed legislation that will stop homebuyers and sellers from locking in quick-fire deals.
And it could put significant pressure on the already struggling auction market, with PropTrack data showing that just last week 16 per cent of the homes that were sold via the auction method ahead a deal locked in before the home was scheduled to go under the hammer.
The warning comes as 579 homes are scheduled to go under the hammer across Melbourne this week, down 10 per cent from the same time last year, according to PropTrack.
A further 743 auctions are scheduled next week, also down 10 per cent year-on-year.
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The proposed Consumer Legislation Amendment Bill 2026 would require a property’s Section 32 vendor statement to have been available for at least 14 days before a contract could be signed.
Real Estate Institute of Victoria chief executive Toby Balazs described the proposed 14-day requirement as “a solution looking for a problem”.
Real Estate Institute of Victoria chief executive Toby Balazs said the proposed 14-day requirement was “a solution looking for a problem”.
“Why would you need to wait 14 days if you have a buyer and seller who have agreed on terms, have made a decision to transact and it is good for both parties?” Mr Balazs said.
“If lawyers and conveyancers have done their suitable checks, then a transaction should be able to proceed.”
Ray White national chief executive Thomas McGlynn warned the proposed changes could create unnecessary barriers for willing buyers and sellers.
Melbourne buyers making an offer early in an auction campaign could face a delay before signing under proposed Victorian property laws.
Ray White national chief executive Thomas McGlynn said the proposal appeared to be “over-engineered” and could create barriers for buyers and sellers who had already reached an agreement.
“You have a willing buyer, you have a willing seller, they want to come together, one wants to sell and one wants to buy, and they are both happy,” Mr McGlynn said.
“I’m not sure that we should be implementing legislation that stops that from happening.”
Entourage finance broker Jordan Dow said limits on early pre-auction deals could make it harder for first-home buyers to secure a property.
Entourage finance broker Jordan Dow said first-home buyers often attempted to negotiate before auction to avoid reaching their borrowing limit under the hammer.
The proposed reforms remain before Victorian parliament and are not yet in force.
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