The Victorian Premier and the state’s peak body for real estate have clashed over a planned change to auction reserve price policy, and whether it will boost or hinder transparency.
Victorian Premier Jacinta Allan and the Real Estate Institute of Victoria (REIV) have traded barbs over proposed legislation requiring agents to make reserve prices public in a bid to stamp out underquoting.
If passed, the new laws would come into effect on 1 October, requiring agents and sellers to publish the reserve price at least seven days before an auction, with the final sale price to also be made public.
The Consumer Legislation Amendment Bill 2026 would also prevent the auction or sale from going ahead if the agent and seller did not disclose the reserve price.
As part of eight recommendations to the government, the REIV has called for policies to require vendors and agents to instead publish a 10 per cent reserve price range three days prior to auction.
“Independent research commissioned this year by the REIV found that 94 per cent of Victorian property owners said they would fundamentally change their selling strategy if forced to disclose their reserve price seven days before auction,” REIV said.
The REIV argued that if the change was implemented, vendors would move to other sale methods that would shift negotiations behind closed doors.
It also said the policy would result in sellers making poorly informed price decisions, leading to published reserves becoming inconsequential and offering little meaningful guidance to buyers.
After REIV penned a letter to Allan about the matter, the premier rejected the proposal, publishing a statement to her social media page late last week.
“Victorians are sick of wasting their weekends chasing homes they were never going to get, because the reserve was well above the price range all along,” Allan said.
“My plan does something about it.”
Allan said the policy wouldn’t prevent competition against other bidders, but would simply reduce the risk of underquoting.
“A home is the biggest purchase a young person will ever make. Let’s not stuff around with it – just be upfront about the price the owners will consider letting it go for. It’s all they’re asking.”
In its response this week, the REIV responded to the letter, saying it was disappointed by the premier’s refusal to “accept constructive, evidence-based input to develop effective legislation”.
The body also said Allan had appeared to misrepresent its stance on property price transparency.
“As the peak body, the REIV has always advocated for transparency and fairness in Victoria’s real estate market,” it said.
“We condemn all forms of underquoting and have provided detailed policy recommendations, grounded in practical insight, to stamp it out.”
The body said it was concerned that the bill posed enormous risk to home owners, buyers, and agents if not substantially amended, exposing participants to new litigation risks and increasing complexity.
“The REIV has repeatedly acknowledged that the government’s intentions are sound, however, the approach is counterproductive,” it said.
“We again flag that the Bill in its current form with the reserve disclosure seven days prior is counterproductive and will drive people away from auctions, the most transparent way to buy a home.”
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