Victoria implements mandatory auction reserve price disclosures

New mandatory disclosure laws in Victoria have taken effect, requiring vendors to advertise their property reserve prices at least seven days before an auction or fixed-date sale. The legislation aims to combat property underquoting and increase transparency in the auction market.

Early adopters of the rule in Melbourne have reported varying results. In Gladstone Park, a vendor who disclosed a $700,000 reserve saw the property sell for $801,000, with the seller noting that transparency may have encouraged competition. In Carlton North, a 1970s apartment sold for $752,000, nearly $40,000 above its listed reserve, with agents noting the law has brought more transparency to the marketplace.