MEDIA RELEASE
Following yesterday’s announcement regarding legislating the inclusion of building and pest inspection reports in vendor’s statements, the Real Estate Institute of Victoria (REIV) welcomes the Victorian Government, today, announcing that it will seek to mandate the disclosure of residential property sale prices, following further industry consultation.
Another key recommendation in the REIV’s A Blueprint for Marketing of Residential Real Estate in Victoria submission to the Government, released in January this year, this change recognises the critical importance of accessible data-driven sale price transparency in enabling stakeholders to make better market-informed decisions.
Developed by the REIV-convened and senior real estate industry-member-comprised Strategic Working Group (SWG), the blueprint proposes a more nuanced and holistic approach for the Government to adopt in improving price transparency and consumer confidence in residential property transactions. This comes in response to the well-publicised issue of underquoting in Victoria.
Headlining the blueprint’s eight recommendations is a requirement for vendors to confirm their reserve price falls within a ten per cent advertised price range no later than three clear business days before auction.
Toby Balazs, REIV CEO, reiterated that while the organisation is encouraged by the Government’s willingness to accept another important recommendation, it should consider all the blueprint’s proposals together as a comprehensive policy suite for addressing underquoting issues.
“‘Price withheld’ is a term that we too often see on recently sold residential property listings. By significantly limiting this practice, this change will help to lift the curtain on current market data that can help stakeholders make better informed decisions,” Mr Balazs said.
“Like the reform regarding building and pest inspection reports announced yesterday, this change is another positive result for prospective buyers.
“While we welcome these important commitments, we urge the Government to consider adopting the blueprint’s other recommendations so as to achieve the critical balance the REIV is seeking between supporting the interests of both prospective buyers and vendors in residential property transactions.
“We continue to strongly advocate for the roll-back of the Government’s proposed mandatory seven-day reserve price disclosure requirement for auctions. Having the potential to trigger inflated reserve prices, a fall in clearance rates and an increase in offers prior to auction, this flawed requirement threatens to compromise the transparency and effectiveness of the public auction process.”
The REIV will seek to continue to engage constructively with the Government to ensure a balanced and effective regulatory response to this critical industry issue.