End of ‘price withheld’: Secret house prices to be banned

Agents and home owners will no longer be able to keep the sale prices of properties secret under a state government plan to help expose underquoting and improve the accuracy of price guides.

It’s not unusual for recently sold properties to have their price listed publicly as “withheld” or “contact agent”, handicapping Victorian buyers trying to gauge price trends in their local area or to assess the accuracy of advertised guides.

Consumer Affairs Minister Nick Staikos said the new “Australian-first laws” would give a clearer idea of the actual market and reduce wasted times at auctions.

“These secret sold prices distort the market. They artificially inflate property prices and make the market less competitive,” Staikos said.

The change requiring sold prices to be made public will be introduced to parliament in June, with implementation set for 2027. The government will work with industry to finalise details of the policy, including the timeframe for disclosure.

The announcement follows this masthead’s Bidding Blind investigation which uncovered rampant underquoting and revealed that the government was advised years ago to bring in laws mandating the timely publication of residential sale results.

In January, the Real Estate Institute of Victoria (REIV) renewed calls for sale prices to be disclosed as part of an eight-point plan to stamp out underquoting, an illegal practice whereby agents deliberately provide a low sale estimate for a property to attract a crowd.

The institute’s reform proposals were presented as an alternative to the government’s plan to force sellers to disclose their exact reserve price seven days before auction, a reform also set to be introduced to parliament in June.

The influential lobby group suggested publishing residential sale prices once a contract became unconditional.

Although sale prices are eventually available via Valuer-General Victoria, the REIV said this could be delayed by six months or more, “by which time the information is less valuable”.

Sale prices should only be withheld under limited special circumstances, such as a family dispute or legal matter, and vendors and buyers should have to apply to seek a restriction ahead of time, the group argued.

Timely sale price disclosure also has the support of consumer groups.

“Most Victorians will buy a home once or twice in their lifetime. It is crucial to have transparent information about sales prices to navigate this high-stakes and stressful process,” said Consumer Policy Research Centre chief executive Erin Turner.

The government pledge follows a week of cost-of-living focused announcements from the Allan government, and several other major law reforms triggered by the Bidding Blind investigation rolled out from late last year.

If re-elected in November, Premier Jacinta Allan has promised to mandate free building and pest reports in a bid to save prospective buyers outlying thousands of dollars investigating homes they are unable to afford.

Amid concerns that inspectors could be incentivised to overlook problems when their client is the seller, Allan said the government would be undergoing consultation this year before implementing the policy.

Still to be finalised is what will be contained in the reports, how to safeguard against conflicts of interest and who will bear the cost of the reports and be accredited to complete them.

Staikos said items that may be included in the reports are whether the property is structurally sound and if it contains mould or termites.

Opposition Leader Jess Wilson said the plan lacked sufficient detail needed for the Coalition to form a position and questioned why the government couldn’t introduce legislation this year.

“This is another big promise from the government with no intention to follow through before the election,” she said. “We need to make sure that independence is maintained throughout this process when it comes to building and pest inspections.”

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