Victoria's peak real estate body has urged the state government to reconsider incoming changes to auction rules, pointing to several weeks of underwhelming clearance rates as evidence of shaky buyer and seller confidence, The Herald Sun reported.
From October 1, agents across the state will be required to publish a reserve price at least seven days ahead of any residential auction or sale.
Real Estate Institute of Victoria chief executive Toby Balazs (pictured) said clearance rates sitting between 40% and 55% over the past seven to eight weeks reflected "an issue of confidence in the Victorian property market."
Melbourne's median house value has also slipped, falling to $984,000 in June 2026, below where it sat a year earlier. Preliminary figures released by realestate.com.au put Victoria's most recent result at 55.8% from 311 early results, though recent history suggests that number may soften once revised — last week's early figure was later confirmed at a lower 47%.
Balazs argued the timing of the reform risks compounding existing market softness.
"With a looming deadline of October 1 for proposed auction changes, we implore the government to rethink what they're doing," he said. He warned the changes "will make a challenging property market potentially tougher" and, in his words, "it's going to push people to less transparent sale methods."
That warning is backed by REIV research showing 94% of Victorian vendors would change their selling strategy if forced to disclose reserves a week out — and once published, that reserve can't be revised, adding to the law's bite.
Balazs also called for broader policy support beyond the auction reform itself, saying the state needed regulatory and tax settings that build confidence for owners to bring properties to market, rather than the current climate of uncertainty.
Away from the policy debate, individual auction results this week showed a mixed picture. A three-bedroom home in Werribee sold for $796,500 after five bidders competed, while a St Helena property fetched $930,000 with a family among the winning bidders. One Ray White director said his agency was steering vendors toward auctions over private sales, citing the certainty of an unconditional sale as a key advantage for homeowners.
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