Reserve disclosure is coming: what inner‑city buyers need to know now

The Minister for Consumer Affairs has framed this as an Australian first intended to curb illegal underquoting and reduce wasted buyer effort. Until the Bill passes, the existing underquoting regime remains in force.

Inner city buyers should anchor their approach in two things. First, how the current Statement of Information requirements work. Second, what reserve disclosure will and will not change.

Current requirements in brief: Agents must provide a Statement of Information with a reasonable estimate of selling price, supported by recent comparable sales, and either a single figure or a range with a maximum spread of 10 per cent. Advertising below the bottom of the current estimate is prohibited. The estimate must be updated when new, materially relevant sales come to hand.

Consumer Affairs Victoria’s underquoting taskforce reports more than 5000 complaints since late 2022, more than 200 infringements issued and a combined total of more than $2.3 million in fines, alongside multiple court proceedings for serious breaches. As of November 2025, the maximum penalty for underquoting offences under the Estate Agents Act is $48,800, with potential exposure to Australian Consumer Law penalties up to $2.5 million for individuals and $50 million for corporations in egregious cases.

Comparable sales guidance has also tightened. In November 2025 Consumer Affairs updated its checklist so that comparables should align on age and architectural style, renovation status, floor and land size, special features, zoning, school zones and proximity to key local amenities. In inner Melbourne, that means comparisons should be between like terraces or apartments on genuinely similar land sizes and renovation levels, not merely the nearest three addresses.

What reserve disclosure means if and when it commences. Publishing a reserve seven days out provides a floor, not a ceiling. Early pilots have shown homes still selling above disclosed reserves. A Woodend auction with a disclosed reserve of $675,000 sold for $783,000, about $110,000 above the reserve, with underbidders reporting that disclosure nonetheless improved confidence. Critics caution that strategic behaviour may persist if reserves are set conservatively and then adjusted, or if vendor bids are used. The draft Bill and any regulations will be important on whether and how reserves can be revised within that seven-day window, and what evidence must support a change.

For buyers in Carlton, Fitzroy, Parkville and East Melbourne the practical playbook is straightforward. Treat the top of any price guide as your starting point rather than your target and stress test your limit against the most recent truly comparable sales on your target streets. Direct your due diligence spend to properties where those sales indicate you are competitive. Use contract reviews to identify issues that affect value and risk in the inner city such as easements, owners’ corporation liabilities, heritage and planning overlays and proposed works. Where the legal and finance positions are sound, a pre-auction offer can be efficient. If reserve disclosure is in force by the time, you are bidding, use the published reserve as a threshold test for how much effort and cost to invest in that campaign.



Two closing points on timing and expectations. The reserve disclosure laws are not yet in effect. The government has committed to introduce the Bill in 2026. Until commencement is proclaimed, the present rules govern campaigns and auctions. Even after commencement, disclosure will not eliminate competitive bidding or market momentum. It should, however, reduce the number of campaigns that buyers pursue without a realistic prospect of success and improve the quality of conversations about price.