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Quentin Kilian has shut down the idea that legislation to protect against underquoting must be a major focus of Victoria’s Property Market Review.
In an opinion piece written for the Herald Sun on Wednesday, 8 June, the chief executive of the Real Estate Institute of Victoria (REIV) acknowledged the imminent release of the Victorian government’s Property Market Review as “a much less talked-about – but arguably more important – industry matter” than the hype currently surrounding interest rates.
The review, which was launched back in February 2022, has already been submitted to Consumer Affairs Victoria, following a consultation phase with industry and consumers.
In his opinion piece, Mr Kilian acknowledged that the latest review had brought into question whether earlier reforms to the Estate Agents Act to address underquoting “needed to be enhanced in light of current market conditions”.
But the CEO does not believe this should necessarily be the case, highlighting that the market “is in a constant state of flux”.
“The market and its legislators have always been focused on ‘underquoting’ rather than ‘evidence-based quoting’,” he wrote.
“Whether a market is rising or falling, the emphasis should always be on ensuring that appropriate market evidence is being used to arrive at an estimated price.”
According to Mr Kilian, it’s market forces, such as interest rates, demand, supply and consumer confidence, that “all play a role in property prices” – and it’s those aspects that all stakeholders, vendors, buyers and agents should understand and work with.
He went on to suggest a common theme running through the Property Market Review’s terms of reference: “That more legislation is required to address any issues in the market.”
But according to Mr Kilian, “what the sector actually needs is well-trained and supported agents, transparency of process and better implementation and oversight of the regulations that already exist”.
He argued that the addition of more regulation “is not the answer when existing rules and requirements have not been supported with adequate control or funding”.
Instead, he suggested that many of the sector’s issues could be better addressed by taking a long-term strategic approach to how the industry is governed and how those in the industry are supported, as opposed to just being regulated.
Even so, Mr Killian reiterated the REIV’s calls for more efficient, informed, and transparent residential property transactions, a fairer housing market, and better pricing transparency for both buyers and sellers – in each and every market condition.
From his perspective, “this includes vendors, buyers and estate agents needing access to real time information, such as disclosure of all sale prices, confidence that the person bidding for your property is a valid buyer with bidder registration and identity verification when signing a contract, and mandatory [continuing] professional development for real estate professionals”.
You can read more about REIV’s submission to the Property Market Review here.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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