Melbourne auctions more than halve from last year's levels

Volume drops sharply from the first weekend

Melbourne auction volumes fell to 500 homes in the week ending 18 October 2026, down 28.9 per cent on the previous week and 56.2 per cent lower than the same week a year earlier, according to Cotality's preliminary results.^[1] The timing aligns with the start of Victoria's reserve price disclosure regime, which took effect on 16 October 2026.

What the new law requires

Under the new rules, agents must publish the seller's reserve price at least seven days before an auction or fixed-date sale, and if the reserve had not been disclosed by that deadline, the sale cannot proceed.^[2] Consumer Affairs Victoria gave a concrete example: for an auction held on 16 October 2026, the reserve price must have been on the public record by 9 October 2026.^[2]

The rules apply equally to fixed-date sales, extending the disclosure obligation across a wider share of the market.^[2]

Changing your mind cancels the date

Real Estate Institute of Victoria CEO Toby Balazs said sellers have little room to move once a reserve is lodged. Balazs said homeowners in Victoria must set and publish a reserve price seven days before an auction or fixed-date sale, and if the seller changes their published reserve during that seven-day window, the auction or fixed-date sale cannot proceed at the planned date.^[4]

Government framed it as an underquoting fix

The Allan Labor Government announced the measure in March 2026, describing it as an Australian first.^[3] Minister for Consumer Affairs Nick Staikos said underquoting is illegal and the government is taking action to stamp it out.^[3]

The law was designed to give buyers the seller's minimum acceptable price at least a week before auction day, reducing instances where advertised price guides fall well short of what a property ultimately sells for.^[3]

Clearance rate improves as volumes fall

"This week's drop is by far the largest, largely driven by Melbourne where auction volumes were down 29 per cent from a week ago and 56 per cent below year-ago levels. The sharp decline coincides with the introduction of reserve price transparency rules in Victoria," Cotality research director Tim Lawless said.^[1]

Melbourne's preliminary clearance rate improved to 56.2 per cent, up from 54.8 per cent the week before and the highest preliminary result in four weeks. About 489 Melbourne auctions are scheduled for the coming week.^[1]