What Does Victoria’s Proposed Reserve Price Disclosure Law Mean for Melbourne Auctions?

Victoria has introduced the Consumer Legislation Amendment Bill 2026, which would require agents to publish a property’s exact reserve price at least seven days before an auction or fixed-date sale. The reform is intended to commence on 1 October 2026, with sold prices also to be published once a sale becomes unconditional. However, as of 8 July 2026, the Bill is still listed as “Assembly — second reading” and has not yet received Royal Assent.

If passed in its current form, agents who fail to publish the reserve price within the seven-day window will not be allowed to proceed to auction or fixed-date sale. The Bill is designed to curb underquoting by forcing the advertised price information to align with the vendor’s actual minimum price before auction day.

What the Reform Actually Changes

Under current Victorian rules, underquoting is illegal where an agent advertises or advises a price below the seller’s reserve or asking price, a rejected written offer, or the agent’s estimated selling price. But the seller does not have to disclose a reserve during the campaign, and Consumer Affairs Victoria notes that the seller’s reserve price is usually set on the day of auction.

That gap has long fuelled buyer frustration in Melbourne auctions: a property can be quoted within one range, attract inspections and bidder registrations, and then sell well above what many buyers understood to be realistic. The proposed reserve price disclosure law would make Victoria the first Australian jurisdiction to require public disclosure of the genuine reserve price, rather than relying only on a price guide or Statement of Information.

The Bill also proposes broader price transparency changes, including publishing a property’s final sold price once the sale becomes unconditional and making that information available through the property price statement.

How Seven-Day Disclosure Differs From a Price Guide

A Statement of Information is an agent’s price document based on the agent’s estimated selling price, comparable sales, and suburb median data. It is not a promise that the vendor will sell at that figure.

The reserve is different. It is the seller’s minimum price for the auction.

Under the proposed reform, that reserve would need to be requested, agreed with the vendor, and published at least seven days before the auction or fixed-date sale. Marketing materials would also need to reflect the reserve price, rather than continuing to display a lower advertised figure.

This does not cap the sale price. Competitive bidding can still push a property well above reserve, and the Bill’s statement of compatibility makes clear that a seller would not be compelled to sell simply because bidding reaches or exceeds the disclosed reserve.

Worked Scenario: Reading a Disclosed Reserve

Suppose a Southbank apartment has a disclosed reserve of $650,000. Recent comparable sales in the same building over the past 90 days sit between $670,000 and $700,000.

A buyer should treat the $650,000 reserve as the floor, not necessarily the likely sale price. The more useful question is whether the reserve is consistent with comparable sales, bidder depth, building quality, owners corporation costs, and broader suburb conditions.

In a strong auction with several active bidders, the final result may still move above the disclosed reserve. In a thinner market, the reserve may become a more realistic guide to where negotiations begin if the property passes in. For a deeper look at buyer strategy across auction and private treaty campaigns, see Forge Real Estate’s guide to auctions vs private sales in Melbourne.

What This Means for Buyers and Sellers

For buyers weighing auction vs private sale in Melbourne, reserve price disclosure should reduce wasted due diligence. Consumer Affairs Victoria advises buyers to arrange building and pest reports before auction because auction contracts usually cannot be made conditional without the vendor’s agreement. A disclosed reserve should make it easier to decide whether an inspection, contract review, or finance check is worth paying for before auction day.

That matters even more for buyers with post-settlement costs to plan. For example, owner-occupiers who need accessibility upgrades, ramps, or bathroom changes may need to budget early for NDIS home modifications in Melbourne alongside stamp duty, conveyancing, moving costs, and immediate repairs.

For sellers, the trade-off is reduced flexibility. The REIV has argued that seven-day disclosure may push some vendors away from auctions and toward private sale methods, where negotiation happens behind closed doors. That concern is particularly relevant in softer markets, where bidder numbers and auction clearance rates vary sharply by suburb. Forge’s guide on Melbourne auction clearance rates under 60% explains why suburb-level data matters more than the headline clearance rate.

What Buyers Should Do Before the Law Starts

Until the Bill passes both Houses, receives Royal Assent, and commences, current Victorian underquoting rules continue to apply.

Buyers should still:

compare the advertised range with recent comparable sales

check the Statement of Information early

ask the agent whether the vendor has provided a reserve or asking price

get legal advice on the contract and section 32 statement before auction

decide a walk-away price before bidding starts

A disclosed reserve will help, but it will not replace independent pricing work. Buyers should still test the reserve against recent sales evidence, property condition, land component, zoning, owners corporation issues, and suburb momentum. For competitive situations before auction day, Forge’s guide to pre-auction offers in Melbourne explains how to structure an offer without being pulled above a defensible ceiling.

Buyer advocacy services, such as those offered by Forge Real Estate, can help interpret a disclosed reserve against comparable sales and suburb-level pricing data. The same analysis can also support vendors in setting a defensible reserve earlier in the campaign, especially if the final legislation reduces the scope for late reserve changes.

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.

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