Victoria's new auction rules: what reserve price disclosure means for investors and business buyers

This article focuses on what the changes mean for investors, developers and business buyers purchasing Victorian property at auction, and for those selling property assets.

What has changed

The new requirements apply to auctions and fixed-date sales from 16 October 2026. If the reserve price hasn't been published 7 days before the auction or fixed-date sale, the sale can't go ahead, and penalties apply. A new Property Price Statement replaces the Statement of Information.

Agents must also ask sellers in writing for their reserve price before the sale, and must show it as a single dollar amount, without words or symbols such as "from", "over", "+" or "starting at".

Further changes start later. From 1 June 2027, section 32 vendor statements must be available earlier, and from 1 July 2027, agents won't be able to take their commission from a deposit released before settlement.

What it means for investors and business buyers

1. You can arrange finance around a real number

Until now, buyers often arranged finance around an advertised price range that could be well below the eventual sale price. A published reserve gives you a concrete figure at least a week before the auction. Use it to confirm your funding, your deposit and how far above the reserve your investment case still works.

2. Indicative approval isn't final approval

Auctions are generally unconditional. Once the hammer falls, you're committed, whether or not your lender's valuation matches the price you paid. In a falling market, the valuation may come in below the reserve or the final price, so plan for that gap. See Why your valuation came in low, and what you can do about it.

3. Use the time for due diligence

Get the vendor statement (section 32) to your solicitor or conveyancer, and to your lender if needed, as early as you can before auction day. From 1 June 2027, agents will have to make it available at least 14 days before an auction. For investors, due diligence includes checking planning overlays, leases, rental history and any matters that affect the property's value as an investment.

4. Line up your funding and settlement plan

If the purchase depends on selling another asset, decide now how you'll fund the deposit and settlement if that sale takes longer than expected. See Sell first or buy first? Managing settlement risk when you're trading property assets.

What it means for sellers of property assets

1. Your reserve becomes public

Investors and developers selling stock now need to set a realistic reserve earlier, knowing buyers will see it. With house prices falling in every capital last quarter, an ambitious reserve may deter bidders. A realistic one may attract more competition.

2. Plan for a longer campaign

If the property doesn't sell at auction, sellers who need the proceeds, for example to repay a facility or fund another purchase, should have a backup plan in place before the campaign starts.

What it means for brokers

For investor and business clients, brokers can help by:

• updating funding plans once the reserve is published
• confirming that clients have enough deposit and buffer to bid above the reserve
• discussing what happens if the valuation comes in low after an unconditional purchase
• planning bridging or settlement solutions for clients trading one asset for another.

The Funding Door view

Greater price transparency helps investors make better decisions. However, the risks of buying at auction remain: auctions are unconditional, valuations can differ from purchase prices, and settlement timing still matters. Investors who prepare their funding properly are best placed to bid with confidence.