The 7-Day Property Rule That Could Shake Up Every Property Sale in Victoria

Victorian property reforms put price transparency back in the spotlight

Victoria’s property market is heading for one of its biggest transparency shifts in years, with new laws set to force greater disclosure around auction reserves and final sale prices.

The reforms, introduced to the Victorian Parliament as part of the Consumer Legislation Amendment Bill 2026, are designed to tackle one of the most persistent frustrations for home buyers, the gap between what a property appears to be worth, what buyers are encouraged to believe it may sell for, and what it ultimately changes hands for.

Under the proposed changes, real estate agents will be required to publish a vendor’s reserve price at least seven days before an auction or fixed-date sale. If that reserve price is not published within the required timeframe, the property cannot proceed to auction.

For buyers, this is being framed as a major step towards clarity. Instead of spending weekends chasing properties they were never realistically able to buy, purchasers will have clearer pricing information before they commit time, money and emotional energy to an auction campaign.

The second major shift is around sold price disclosure. Once a sale becomes unconditional, agents will be required to update the property price statement to include the final sold price within seven days, unless an exemption applies.

That change matters.

For years, delayed sale price information has contributed to confusion in the market. Buyers trying to understand what homes are actually worth have often had to rely on incomplete, delayed or withheld information. In fast-moving suburbs, that lag can distort expectations, weaken comparable sales research and make it harder for buyers to know what they should be paying.

The Victorian Government has argued that making sold prices available sooner will give buyers, sellers and agents a clearer view of real-time market value. In simple terms, if a home sells in a particular street, suburb or school zone, buyers in that market will no longer have to wait months to understand where the price landed.

That level of visibility could be especially important in competitive areas where a single strong result can reset buyer expectations almost overnight.

For agents, however, the reforms raise practical questions.

Publishing a reserve price a full week before auction removes a level of flexibility traditionally used during campaigns. Vendor expectations can shift, buyer interest can change and market feedback can evolve quickly, particularly in Melbourne’s auction-heavy suburbs. Some in the industry are concerned the rules could push more negotiations behind closed doors if vendors become less willing to run public auction campaigns under stricter disclosure requirements.

That is the tension at the centre of the reform.

On one side is the push for a fairer, more transparent market where buyers are not misled by unrealistic price guides. On the other is the industry concern that rigid rules may change vendor behaviour and reduce the number of properties sold in open auction environments.

The Real Estate Institute of Victoria has previously warned that the laws could have unintended consequences, including less public competition and more private negotiation. Others argue the reforms are overdue and that the industry needs stronger guardrails to restore trust in the buying process.

Both points can be true.

Underquoting has long been one of the most damaging issues in residential real estate, not only because it frustrates buyers, but because it undermines confidence in agents, auctions and advertised price guides. When buyers repeatedly attend campaigns that finish well above the quoted range, the public perception of the industry suffers.

At the same time, any reform that changes the mechanics of auction campaigns must be watched carefully. Good policy should protect buyers without creating a market where vendors avoid transparency altogether.

The sold price disclosure measure may prove to be the more universally useful part of the package. Faster access to real sale prices gives buyers better comparable data, helps agents provide more accurate advice and supports vendors in setting more realistic expectations.

If implemented properly, it could reduce one of the biggest information gaps in the market.

The reserve price rule will be the more controversial test. It will require agents to communicate earlier, vendors to make firmer decisions sooner and buyers to interpret price information with more discipline. It may also force the industry to rethink how auction campaigns are structured, particularly in areas where late campaign momentum has traditionally influenced reserve discussions.

What is clear is that Victoria is moving towards a market where pricing information is expected to be more visible, more accessible and more immediate.

For buyers, that means a better chance of understanding value before they bid.

For sellers, it means less room to keep key pricing expectations private.

For agents, it means compliance, communication and evidence-based pricing advice will become even more important.

And for the broader real estate industry, it signals a clear message: transparency is no longer optional. It is becoming central to how the market is regulated, trusted and understood.

The real test will not simply be whether the laws reduce underquoting. It will be whether they create a market that is genuinely clearer, fairer and more functional for everyone involved.