Independent research commissioned by the Real Estate Institute of Victoria has found the state government’s proposed reserve price disclosure laws could produce the opposite of their intended effect.
The survey of 1,000 Victorian’s found 94 per cent of property owners would fundamentally change their selling strategy if required to disclose their reserve price seven days before an auction.
More than a quarter of respondents (27 per cent) said the proposed law would take the decision to sell out of the owner’s hands, while one in four (25 per cent) believed it would give the government undue influence over sale prices.
REIV CEO Toby Balazs said the findings showed the current proposal was counterproductive.
“It is likely to compromise transparency by triggering inflated reserve prices, a fall in clearance rates and an increase in offers prior to auction – as the survey results clearly indicate,” Mr Balazs said.
“For Victorians seeking to sell what is likely to be their biggest financial asset, the proposed law is too heavily weighted against property owners.”
REIV President Jacob Caine said it’s clear that the public doesn’t support the changes, and that increased regulation is having an negative impact.
“The regulatory burden in Victoria has become so onerous that it’s discouraging people across the spectrum, whether they’re renters, investors, buyers or sellers, from engaging with the system,” Mr Caine said.
“As a result, people are not living in the homes or suburbs they actually want to. Not because there aren’t options, but because the system itself has become so cumbersome that many would rather stay put than go through the process.”
The REIV has released an alternative framework through its ‘Blueprint for Marketing of Residential Real Estate in Victoria’, developed by its Strategic Working Group.
The blueprint’s central recommendation requires vendors to confirm their reserve price falls within a 10 per cent advertised price range no later than three clear business days before auction – rather than the government’s proposed seven-day disclosure.
Additional recommendations include compulsory disclosure of all sale prices once contracts become unconditional, mandatory bidder registration, enhanced comparable sales criteria, and stronger enforcement mechanisms.
The research forms part of the REIV’s broader ‘Fixing the Foundations – Election Priorities 2026’ platform, launched ahead of November’s state election.
The platform outlines five reform areas including a modern property market framework, stable tax and regulatory settings to support rental supply, restoring competitiveness in commercial and industrial property, reforming first home buyer support, and embedding higher professional standards across the industry.
“This is a critical opportunity to recalibrate property market settings to achieve improved policy outcomes for Victorians,” Mr Balazs said.
“What we are continuing to see across much of the sector – not least in the state’s flat-lining rental market – is flawed, one-sided policy initiatives that are failing to address material issues.”
“If the Victorian Government is serious about addressing the housing crisis, it needs to take meaningful steps to deregulate parts of the housing ecosystem that have become too burdensome,” Mr Caine said.
“It also needs to genuinely incentivise investment to ensure there are enough homes for the growing population.”
“And importantly, it needs to create a system that is fair for everyone involved, whether that’s buyers, sellers, renters or investors.”