Victoria's New Underquoting Laws Explained: What the 1 October Reserve Price Rules Mean for Melbourne Buyers

Victoria is about to make one of its biggest changes to residential property price transparency in years.

From 1 October 2026, a new set of Victorian underquoting laws begins to take effect. The reforms introduce a new Property Price Statement, mandatory publication of sold prices and tighter rules around comparable sales. For auctions and fixed-date sales held on or after 16 October 2026, agents will also have to publish the seller's reserve price at least seven days before the sale.

That distinction matters. The reforms commence from 1 October, but Consumer Affairs Victoria confirms that the new reserve-price disclosure and Property Price Statement requirements apply to auctions and fixed-date sales held from 16 October 2026 onwards. For an auction on 16 October, for example, the reserve must be published by 9 October. Consumer Affairs Victoria — new property sales and underquoting laws

For Melbourne buyers frustrated by underquoting, vague price guides and auctions where the reserve only becomes apparent after bidding starts, the new system should provide considerably more information before auction day.

But it does not make comparable-sales research unnecessary.

What Is Changing Under Victoria's New Underquoting Laws?

The reforms change several parts of the residential sales process.

For auctions and fixed-date sales covered by the new rules, an agent must obtain the seller's reserve in writing and publish it at least seven days before the auction or fixed-date sale. The reserve must be shown as a single dollar amount, rather than a range or expressions such as "from", "over", "+" or "starting at". Consumer Affairs Victoria — reserve price disclosure guidance

Once that reserve is set, advertising must be updated to reflect it. Online advertising generally needs to be updated within one business day after the agent receives the reserve.

More importantly, an auction or fixed-date sale cannot proceed unless the reserve has been published for the required seven-day period.

That creates a very different information environment for Melbourne auction buyers.

Until now, buyers could spend weeks inspecting a property, arranging finance, obtaining legal advice and preparing to bid without knowing whether the vendor's reserve was significantly above the advertised price guide.

Under the new system, that uncertainty should reduce substantially in the final week before the auction.

Statement of Information vs Property Price Statement: What Is Different?

Another major change is the replacement of Victoria's familiar Statement of Information with the new Property Price Statement, or PPS.

SEMrush data for Australia shows that "statement of information Victoria" currently has stronger established search demand than many of the newer underquoting phrases, so buyers are likely to encounter both terms while the market transitions to the new system.

The Property Price Statement goes further than simply changing the document's name.

Consumer Affairs Victoria says it must include important characteristics of both the property being sold and the comparable properties relied upon. These include the building type, bedrooms, bathrooms, car spaces, internal floor area and land size. It must also be displayed much more prominently in online advertising rather than being buried near the bottom of the listing. Consumer Affairs Victoria — Property Price Statement requirements

For buyers, that makes it easier to ask a much more useful question:

Are the properties being used as comparables actually comparable?

A two-bedroom apartment with one bathroom, no parking and 65 square metres of internal space may not tell you much about the value of another two-bedroom apartment with two bathrooms, parking, 90 square metres and an unobstructed view — even if they are in the same building.

The new PPS gives buyers more of the information needed to identify those differences.

Comparable Sales Rules Are Also Getting Stronger

Comparable properties remain central to Victoria's underquoting laws.

For metropolitan Melbourne, a comparable property generally needs to be of a similar standard or condition, sold within the previous six months and located within two kilometres of the property being marketed.

The new rules make it clearer that agents must consider the three most comparable properties where they are available.

Importantly, if only one or two legitimate comparable sales can be identified, the agent can no longer simply disregard comparable evidence because fewer than three exist. Those one or two sales must be taken into account and identified on the Property Price Statement. Consumer Affairs Victoria — comparable property requirements

That may be especially useful in tightly held Melbourne suburbs or for unusual properties where genuinely comparable transactions are scarce.

It does not mean every comparable selected by an agent will tell the full story.

Floor level, orientation, renovation quality, land position, school-zone location, street quality, views, building condition and owners corporation liabilities can all materially affect value.

That is why buyers still need to pressure-test the Property Price Statement against the local market, rather than treating it as an independent valuation.

Forge's guide to buying smart in Melbourne when underquoting, auctions and off-market sales collide explains why the advertised price, market value and your own maximum price should be treated as three different numbers.

Does Publishing the Reserve Price End Melbourne Auction Underquoting?

Not necessarily.

The new rules provide buyers with more information, but they do not guarantee that every property will sell at its published reserve or that every buyer will agree with the agent's earlier estimate of value.

A reserve price is ultimately the seller's minimum price for the auction at that point in time.

It is not the same thing as an independent valuation.

It is also possible for a reserve to change. Consumer Affairs Victoria says that if a seller changes the reserve, the new reserve must be published and the auction generally cannot proceed until the revised reserve has been publicly available for the required seven-day period. Consumer Affairs Victoria — industry Q&A on reserve changes

The practical improvement is that buyers should have much greater clarity before auction day.

Instead of arriving at an auction wondering whether a $900,000 campaign is actually targeting a vendor expecting $1.05 million, buyers should be able to see the published reserve before committing to the final stage of the campaign.

What Happens If the Property Changes From a Price Listing to an Auction?

This is one of the situations that often confuses buyers.

A property may initially be marketed with an indicative selling price and later move to an auction or another fixed-date sales method.

That change does not by itself establish that the property was underquoted.

Price expectations can change during a campaign because of new comparable sales, seller instructions, written offers, buyer feedback or a change in the method of sale.

What matters is whether the agent's advertising and price representations comply with Victoria's rules at each stage of the campaign.

Under existing underquoting requirements, an advertised price cannot be below the agent's estimated selling price, the seller's asking price or a written offer rejected by the seller because the price was too low. Advertising must also be updated when relevant pricing information changes. Consumer Affairs Victoria — understanding property prices and underquoting

Once the new auction requirements apply, buyers will have another reference point: the published reserve in the seven days leading into the auction.

Sold Prices Will Become Easier to Find

The reforms do not stop at the reserve price.

From 1 October 2026, agents must generally update the Property Price Statement with the final sold price no later than seven days after the contract becomes unconditional.

The updated PPS must then remain publicly available for at least 18 months, subject to limited exemptions, including certain circumstances involving family or personal violence. Consumer Affairs Victoria — sold price disclosure rules

For future buyers, this could gradually create a much clearer trail between:

the original indicative selling price,

the published reserve price,

and the eventual sale price.

That information should make subsequent comparable-sales research more useful.

How Melbourne Buyers Should Use the New Property Price Statement

The biggest mistake would be treating the Property Price Statement as the answer rather than the starting point.

Before bidding, buyers should compare the PPS against their own evidence and ask whether the selected comparable sales genuinely match the property.

Look closely at differences in land size, internal area, condition, car parking, floor level, aspect, building quality and recent renovations.

Apartment buyers should go further again.

Price analysis does not reveal owners corporation disputes, major rectification works, special levies or building defects. Forge's Melbourne apartment due-diligence guide explains why reviewing the building itself can be just as important as reviewing the price.

Long-term usability can matter too. Buyers who know a property may eventually need accessibility changes should consider whether entrances, bathrooms and circulation spaces can realistically be adapted. Melbourne providers such as Mobility Access Modifications specialise in residential accessibility work including ramps, bathroom modifications and other home-access solutions.

How Buyer Advocacy Changes Under the New Rules

The new reserve disclosure rules do not eliminate the role of buyer advocacy.

They change the information available to the buyer's advocate.

Seven days before an auction, a buyer should now have a much clearer basis for answering three separate questions:

What is the seller prepared to accept?

What does the market evidence say the property is worth?

What is the property worth to me?

Those numbers do not have to be identical.

A published reserve of $1 million does not automatically mean a buyer should bid $1 million.

Equally, a property could still be worth more than the reserve if genuinely comparable sales support a higher value and several informed buyers compete for it.

The useful role of buyer advocacy is therefore not simply reading the reserve. It is testing that reserve against recent evidence, identifying differences between comparable properties, setting a disciplined bidding limit and representing the buyer when the auction becomes emotional.

Forge's guide to Melbourne auction preparation and bidding strategy provides more detail on preparing finance, reviewing comparable sales and establishing a walk-away price before bidding begins.

What the October 2026 Underquoting Changes Mean for Melbourne Buyers

Victoria's new rules should make one part of the property-buying process considerably more transparent.

For auctions and fixed-date sales from 16 October 2026, buyers should be able to see the vendor's actual reserve at least seven days before the scheduled sale.

They will also receive a more detailed Property Price Statement, stronger comparable-sales disclosure and, after an unconditional sale, much faster access to the final sold price.

That should reduce some of the guesswork traditionally associated with Melbourne auction underquoting.

But a published reserve is still only one piece of the valuation puzzle.

The strongest approach remains to compare the reserve with genuinely comparable sales, understand the property's individual strengths and risks, decide what it is worth before auction day and set a bidding ceiling before competition begins.

Forge Real Estate provides buyer advocacy, comparable-sales analysis and auction representation across Melbourne for buyers who want independent support assessing the Property Price Statement, local market evidence and their bidding strategy before committing to a purchase.

Forge Real Estate Melbourne can help you blueprint your future by finding the perfect blue-chip property where your lifestyle needs and investment goals converge.

📞 Phone: (03) 91003633

✉️ Email: info@forgeproperty.com.au

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