Victoria's Reserve Price Law: What It Means for Buyers and Sellers 2026

Victoria's new reserve price law requires sellers to publish their reserve price at least one week before an auction, a major transparency reform aimed at eliminating underquoting. This change is already reshaping buyer and seller strategies, with agents pivoting to expressions of interest campaigns and private sales to keep reserves hidden.

What the New Law Requires

The Victorian government's underquoting reforms, which took effect this month, introduce three key changes. First, sellers must publish the reserve price—the lowest price they will accept—at least one week before an auction or fixed-date sale. Second, they must provide prospective buyers with additional market context, including nearby comparable sales. Third, property sale prices must be published after a transaction is completed.

These laws are among the most progressive in the world, designed to combat underquoting—sometimes called "bait pricing"—where properties are marketed below their expected sale price to artificially inflate interest. The goal is to create a fairer, more transparent market for all participants.

How Agents Are Adapting

Within days of the law taking effect, property agents began testing workarounds. According to Nicole Jacobs from buyer's agency Cohen Handler, there is already a noticeable pivot toward open-ended expressions of interest campaigns, which allow sellers to keep their reserve price hidden. There is also a shift away from auctions to private sales.

Under the legislation, if the sale process is open-ended, a reserve doesn't need to be made public. This loophole is being exploited by some agents to avoid disclosing the reserve while still generating competitive tension. Market participants say this could undermine the law's transparency objectives.

Impact on Buyers

For buyers, the new law brings both benefits and challenges. On the positive side, knowing the reserve price upfront provides clarity and reduces the risk of wasted time and money on inspections and due diligence. It also levels the playing field by giving everyone access to the same information.

However, the shift to expressions of interest and private sales may reduce transparency in other ways. Buyers may face less certainty about the final sale price and fewer opportunities to compete openly at auction. Additionally, the requirement to publish comparable sales can help buyers gauge market value, but it may also lead to more aggressive pricing strategies from sellers.

Impact on Sellers

Sellers, on the other hand, must now weigh the benefits of transparency against the potential loss of negotiating flexibility. Publishing a reserve price can attract serious buyers and streamline the process, but it also removes the element of surprise and may limit the final sale price if the reserve is set too low.

The move toward private sales and expressions of interest gives sellers more control over the process and allows them to keep their reserve hidden. However, this may reduce competition and lead to lower sale prices in some cases. Sellers must carefully consider their strategy in this new environment.

What to Watch Next

Victoria's reforms are being closely watched as a test case for the rest of Australia. Other states may follow suit if the laws prove effective in reducing underquoting and improving market transparency. Key indicators to monitor include the proportion of auctions versus private sales, the incidence of underquoting complaints, and the overall impact on property prices.

For buyers and sellers, staying informed about these changes is crucial. As the market adapts, new strategies will emerge. Keeping an eye on regulatory updates and market data will help you navigate the evolving landscape.

• Reserve price disclosure required one week before auctions or fixed-date sales.
• Comparable sales data must be provided to prospective buyers.
• Sale prices must be published after transactions.
• Agents are pivoting to expressions of interest and private sales to avoid disclosure.
• Buyers gain transparency but may face less open competition.
• Sellers must balance transparency with negotiating flexibility.

Comparison of Sale Methods Under New Laws

As the real estate landscape evolves, understanding these changes is key. For a broader perspective on how location impacts property decisions, consider how Australia's diverse property markets compare. Additionally, factors like business and economic trends can influence buyer behavior. And for those looking to invest, financial strategies play a crucial role. Staying informed about cryptocurrency's impact on real estate is also becoming relevant. Finally, don't overlook car and transport considerations when choosing a property.