By Shawn Mendis (Pakenham, Victoria)
The Victorian Government has announced a major reform in the real estate sector aimed at tackling the practice known as under-quoting. Under the proposed changes, real estate agents in Victoria will be required to publish the exact reserve price of a property at least seven days before it goes to auction or is sold via a fixed-date sale.
What is happening and when?
- The reform was publicly announced in November 2025 by the Minister for Consumer Affairs, Nick Staikos, and is slated for introduction to Parliament in 2026.
- Once enacted, agents will need to disclose the reserve price at least seven days prior to auction or fixed-date sale.
- If the reserve price is not published in time, the property cannot proceed to auction or fixed-date sale under the proposed regime.
Who is responsible?
- The reform is being driven by the Victorian Labor Government, led by Premier Jacinta Allan, with the support of her Consumer Affairs Minister Nick Staikos.
- The legislation will be introduced to the Victorian Parliament, and will require passing both houses (Legislative Assembly and Legislative Council) before coming into force.
- The regulatory oversight will remain with Consumer Affairs Victoria, which already has a taskforce dealing with under-quoting complaints.
Will it pass? My view
In my professional opinion the reform has a high likelihood of passing the Victorian Parliament — here are the factors for and against:
Reasons for passing
- The Government has framed the reform as a key transparency initiative, which is politically popular among home-buyers and first-time purchasers.
- The issue of under-quoting has been longstanding, with complaints mounting and fines already being issued by the Taskforce.
- The reform aligns with broader public interest in fairness and consumer protection in property transactions.
Reasons for potential resistance
- The real estate industry (for example Real Estate Institute of Victoria) has expressed concern that mandatory reserve disclosure may disadvantage vendors and reduce flexibility in sale campaigns.
- Some opposition voices argue that while transparency is improved, affordability is not addressed by the reform — this may lead to amendments or weakening of the proposed regime.
Conclusion
Given the strong public and political push for transparency, and the Government’s willingness to act, I believe the reform will pass in 2026. The key question will be the exact form of the legislation (the fine print) and how stringently it is enforced post-passage.
