Agents Withdraw Support, Sparking Auction Rules Showdown
A significant political debate is brewing over auction laws in Victoria, Australia, following the Real Estate Institute of Victoria’s (REIV) firm opposition to government proposals. This response centers around contentious changes to auction practices that have the potential to reshape the real estate landscape.
Government’s Proposed Auction Regulations
In late 2025, Consumer Affairs Minister Nick Staikos announced ambitious plans intended to combat underquoting in the real estate market. The proposed laws would mandate agents to disclose the owner’s reserve price at least seven days prior to auction day or a fixed-date sale.
Staikos’s initiative arose from findings of the “Bidding Blind” investigation, revealing that many buyers were misled by inaccurate price guides. Statistics showed that over half of the 26,000 properties auctioned in Melbourne sold above the upper limit of advertised price ranges, suggesting significant flaws in current practices.
REIV’s Alternative Blueprint
In response, the REIV introduced an alternative eight-point plan. This proposal includes significant reforms such as a demerit point system for agents and other strategies tackling underquoting.
- A shift toward publishing free building inspection reports to assist buyers.
- A ban on withholding sale prices once a contract becomes unconditional.
- The introduction of a demerit system that may suspend agents who violate regulations.
REIV Chief Executive Toby Balazs expressed that their blueprint offers a more equitable and effective solution. The new framework aims to require sellers to confirm that their reserve price falls within a 10% range, rather than disclosing an exact figure.
Implications of Underquoting
Underquoting has long been a contentious issue in Victoria’s property market. The REIV emphasizes that only a minority of agents engage in this practice, but this perception tarnishes the overall industry’s reputation.
In 2022, a Consumer Policy Research Centre survey revealed that about one in six Victorians spent thousands on multiple building inspections due to misleading pricing. The REIV believes that their strategies will restore buyer confidence without imposing significant financial burdens.
Conclusion
While the government stands firm on its push for greater transparency in reserve pricing, the REIV’s comprehensive blueprint seeks to address industry frustrations while still promoting auction integrity. As discussions continue, the fate of Victoria’s auction laws remains uncertain, highlighting the need for collaboration between the government and industry stakeholders.
