The Property Investment Professionals of Australia (PIPA) welcomes the Victorian Government’s efforts to targeting underquoting in the real estate market. As a peak body representing property investment professionals, PIPA recognises the significance of the problem for consumers in relation to underquoting. Changes need to foster a fairer and more transparent environment for both investors and buyers. However, the latest proposed reforms by the Victorian Government don’t address the core of the problem, and there are still elements that are yet to be detailed that could pose other challenges for vendors and consumers alike.

The new regulations, set to be enacted in 2026, will require real estate agents to publish a property’s reserve price at least seven days prior to auction. This groundbreaking legislation aims to stamp out the practice of underquoting, ensuring that buyers are fully informed before making significant financial decisions.

Cate Bakos, Chair of PIPA, stated, “While we support the intended transparency of these reforms, we are concerned about the lack of consultation with industry stakeholders, including ourselves and other peak bodies. Collaboration is key to developing effective policies. Furthermore, we seek further clarity from the Victorian government on how vendors will navigate their right to change the reserve price within the week leading up to the auction. This aspect must be clearly defined to enable vendors to have control of their sale decision, prevent confusion and ensure compliance.”

PIPA is committed to advocating for policies that enhance the property investment landscape, and we believe that transparency is key to achieving this goal. The proposed reforms are a positive development, aligning with our mission to empower investors and promote responsible investment practices.

“We urge the Victorian Government to engage more closely with industry professionals to refine these regulations and ensure they work effectively for all parties involved,” Bakos added. “It’s essential that we work together to create a property market that is not only vibrant but also fair and equitable for all participants.”

PIPA looks forward to ongoing collaboration with the government and industry stakeholders to ensure that the implementation of these reforms is smooth and effective.