The Real Estate Institute of Victoria (REIV) has welcomed the announcement by the Minister for Consumer Affairs to ban the use of ‘price plus' in real estate advertisements.
The ban relates to advertising which states an estimate of a property being anywhere upwards from $X. and aims to protect consumers against agents underquoting property prices.
The move is a part of ongoing reforms to Victoria's consumer protection regime.
"Banning price plus advertising is a prime example of regulation that protects consumers and contributes to a fair and efficient real estate market," Consumer Affairs minister Tony Robinson said.
REIV President John Grabyn said that the banning of price plus would also make it easier for consumers to compare properties for sale and alleviate confusion.
"The REIV's own pricing guidelines state that all property advertisements which include a price should be shown as either a single figure or a range no greater than 15 per cent," Mr Grabyn said.
"The banning of price plus will not restrict the price a property will be sold for as the market will determine this but it will make it simpler for consumers and bring some consistency into property advertising.
"The REIV looks forward to assisting with Consumer Affairs Victoria on the implementation of this policy," he said.