Melbourne recorded a Domain preliminary auction clearance rate of 56% for the week ending Saturday 3 October, compared with 66% at the same time last year. Of the 714 scheduled auctions, 507 results were reported, with 283 properties sold, 79 withdrawn and 145 passed in. Highlighting the current push away from auctions, the REIV reported an additional 535 private sales across Victoria for the week.
October has brought changes to Victoria’s residential property sales laws, with new requirements around advertised prices, auction reserves and the disclosure of sold prices.
Reserve prices must be published before auction
For auctions and fixed date sales held from 16 October 2026, selling agents must publish the seller’s reserve price at least seven days beforehand.
The reserve must be advertised as a single dollar amount and included in the Property Price Statement (PPS). An auction or fixed date sale cannot proceed unless the reserve has been published for the full seven-day period. Fixed date sales include methods where buyers must submit offers by a specified date and time.
The intention is to give buyers greater clarity about the seller’s expectations before they commit to inspections, contract reviews and auction preparation.
However, publishing a reserve does not necessarily mean that the reserve is realistic, nor does it necessarily have any relevance to the value of the property. I have concerns that some vendors will set their reserve prices high to allow them more room to negotiate, as the published reserve may, in some instances, cap the amount a buyer is prepared to pay for a property.
This could very well result in buyers not participating in or attending an auction if they consider the reserve to be above market value or beyond their budget. With fewer bidders competing, I believe we could see more properties passed in.
Knowing the reserve also does not guarantee a purchase at that price. Strong competition can still push the result higher than this level.
I also expect there will be a greater push by some agents and vendors towards private sales, particularly where sellers are reluctant to disclose their reserve or commit to it in advance.
This could have an unintended consequence: more properties being sold through a process that is less transparent than a public auction. At a public auction, buyers can see competing bids and follow the price as it rises. In a private negotiation, buyers usually have less visibility over competing offers, their conditions and how their own offer compares.
Private sales can work well, but buyers are more reliant on information communicated by the selling agent. If these reforms encourage a shift away from auctions, we could gain transparency around published prices while losing some visibility and transparency over the negotiations themselves.
This is something I will be watching closely as the new requirements take effect.
Property Price Statement
The Statement of Information is being replaced by a Property Price Statement, which must include more detail about the property and the comparable sales supporting its price estimate.
Required features include bedrooms, bathrooms, car spaces, internal floor area and land size. The statement must also be displayed or linked prominently beside the advertised price on the main online listing.
Agents must consider the three most comparable sales. If only one or two qualifying comparable sales are available, those must still be considered, with an explanation of why fewer than three were identified.
This should help buyers assess the comparable sales more closely, although differences in condition, renovation quality, position and layout still require careful consideration.
Sold prices must now be published
From 1 October 2026, agents must publish the final sale price in the Property Price Statement within seven days of a sale becoming unconditional. The statement must remain publicly available online for at least 18 months.
This also applies to residential properties sold off market through an agent. Limited exceptions include certain agency agreements entered into before 1 October containing a non-disclosure term, as well as approved exemptions relating to family or personal violence.
This is a positive step and gives buyers and vendors greater access to information to help them understand the value of their own property or the property they want to purchase.
What does this mean for buyers?
I welcome reforms that give buyers better access to reliable information. However, I am not convinced that publishing reserves will necessarily deliver better results, particularly if high reserves discourage buyerr participation or more vendors move towards private sales.
Whatever the method of sale, buyers should assess value independently, complete their due diligence and establish a clear buying limit.
Have a great week.
Kim Easterbrook – Managing Director
