Opinion Editorial published in the Herald Sun on 16 October 2026
By Toby Balazs, CEO Real Estate Institute of Victoria
Victoria’s property market is known for its resilience. And it’s weathered its fair share of shocks before.
It has navigated economic downturns, the disruption of COVID-19, sharp changes in interest rates and repeated shifts in buyer sentiment.
Each time, the market has adapted. Buyers adjusted, sellers recalibrated and transactions continued because people displayed the necessary flexibility and agility to respond to changing conditions.
That ability for buyers or sellers to adapt quickly to change in the sale process is more important than ever.
There’s ample economic commentary on high interest rates, federal changes to property taxes, international wars, a fuel crisis and various other factors that are contributing to challenging property market conditions. Auction clearance rates are trending lower, prices are volatile, and borrowing costs are increasing. Sellers looking at their options while these market conditions linger.
Yet at this volatile time, the Victorian government has introduced legislation that limits the ability for Victorian buyers and sellers to adapt to changing market conditions.
Homeowners in Victoria must set and publish a reserve price seven days before an auction or fixed date sale. If the seller changes their published reserve during that seven-day window, the auction/fixed date sale cannot proceed at the planned date.
A seller’s reserve is shaped throughout the campaign by buyer feedback, but importantly, macro-economic factors such as interest rates or more personal factors such as a workplace redundancy can also influence price decisions. Unfortunately, sellers responding to this new market information will now be forced to delay the sale.
The Government’s efforts to improve price transparency are well intentioned. Reforms that make property transactions fairer, give buyers better information, and strengthen confidence in the market should always be supported.
Good consumer protection should be based on sound market understanding that informs policy designed to enable an efficient market, supporting all stakeholders.
It is important to recognise that buyers also lose flexibility under these new laws. If an auction is delayed because a reserve price changes, prospective buyers may have already arranged finance, completed due diligence, paid for building inspections or started proceedings for the sale of their own property.
A willing buyer and seller can be ready to transact, but now have to wait.
Policy settings should give Victorians the confidence to respond to market conditions, not create hurdles.
Despite this, the show must go on. These changes are in effect, and buyers, sellers and estate agents are already adapting.
But implementation should not be the end of the conversation. Over the next few months, the Victorian Government must closely monitor the impact of new laws on the market, and listen to feedback from buyers, sellers, and agents.
The next Victorian Government must commit to reviewing the legislation and fixing flaws as a priority.
As the peak body for real estate professionals, the Real estate Institute of Victoria will, and has now focused energies on training and supporting the sector to comply with the new legislation. We will continue to highlight the importance of governments to create policy settings that build resilience, not rigidity.