The Victorian Greens have today unveiled a plan to ban street auctions, arguing the current system is designed to push up house prices by pressuring buyers into paying more. Under the plan, street auctions would be banned, reserve prices would be disclosed upfront, real estate agents and buyers' agents would be required to declare fixed fees, and vendors would pay for building & pest reports.
The Greens say Victoria's reliance on public auctions is unusual by international standards and contributes to a housing market that increasingly shuts out first home buyers.
As stated by the Victorian Greens housing spokesperson, Gabrielle de Vietri:
"Buying a home is one of the biggest financial decisions most people will ever make. You shouldn't be forced to make that decision in a public pressure cooker designed to whip up panic, competition and FOMO.
"Street auctions are designed to create a frenzy. That's great if your aim is to drive prices higher. It's terrible if you're trying to buy a home.
"The most important number in the whole process - the reserve price - is hidden from buyers until the very end. People waste weeks of their lives and thousands of dollars chasing homes they never had a realistic chance of buying.
"Most countries manage to sell homes without turning it into a bidding war on the footpath. Victoria can too.
"For every home bought by a first home buyer, wealthy investors are buying two. House prices have doubled over the past twenty years and the cost of buying a home has surged. The last thing we should be doing is defending a sales system specifically designed to squeeze buyers for every extra dollar.
"Banning street auctions won't solve the housing crisis on its own. That's why the Greens are also fighting to build more public housing, cap rents and cut stamp duty."
