Melbourne auction volumes drop by a third in first week under reserve price rules

Melbourne's scheduled auction volumes have fallen by about a third in the first week of auctions subject to Victoria's new reserve price disclosure requirements, with Cotality recording 469 auctions scheduled for the week ending 18 October, down from 703 the previous week, as the Real Estate Institute of Victoria calls for the law to be reviewed.

Under the Consumer Legislation Amendment Act 2026, sellers must set and publish a reserve price at least seven days before an auction or fixed-date sale. If the published reserve changes inside that window, the sale cannot proceed on the planned date. The REIV says the reserve disclosure requirement took effect on 1 October.

The numbers

Cotality's 15 October release shows the Melbourne figure for the week ending 18 October is less than half the 1,142 auctions held in the same week last year. Across the combined capitals, 1,501 auctions were scheduled, down 14.2 per cent on the week.

In the week ending 11 October, the combined capitals final clearance rate was 44.1 per cent, down from 45.4 per cent the week before and 68.2 per cent a year earlier, the fourth consecutive weekly decline. Melbourne recorded the strongest result of the capitals at 49.8 per cent from 703 auctions. Sydney cleared 45.6 per cent of 632 auctions, Adelaide 44.9 per cent of 138, Canberra 38.5 per cent of 65 and Brisbane 21.8 per cent of 197.

"This suggests that the extra spring listings aren't being met by more buyers," Cotality economist Annabelle Mezieres said.

Ms Mezieres linked the fall in Melbourne volumes to the timing of the rule, noting it coincided with the first week of auctions subject to "Victoria's new reserve price disclosure requirements", while cautioning that it was too early to determine whether the changes were affecting seller behaviour.

REIV wants the law reviewed

REIV chief executive Toby Balazs, in an opinion piece published by the institute on 15 October and in the Herald Sun on 16 October, said the rule reduced flexibility for both sides of a sale at a time of falling clearance rates and rising borrowing costs.

"A willing buyer and seller can be ready to transact, but now have to wait," Mr Balazs said.

"Policy settings should give Victorians the confidence to respond to market conditions, not create hurdles."

Mr Balazs acknowledged the aim of price transparency and said the REIV was focused on training and supporting the sector to comply with the new rules.

"The next Victorian Government must commit to reviewing the legislation and fixing flaws as a priority," he said.

Further stages of the Act follow. Section 32 vendor statements must be available at least 14 days before sale from 1 June 2027, and sale information must be provided to the Director of Consumer Affairs Victoria from 1 December 2027, according to the REIV.

Source: Cotality media release, 15 October 2026; REIV, 15 October 2026.