At this point in time, The Block has become infamous for having some buckwild house prices. For instance, in 2022, Omar and Oz’s property was auctioned off for over $5 million.
However, the more expensive a house is, the less likely it is to hit its reserve. While Omar and Oz got blessed last year, many of the other contestants weren’t as fortunate. Neither Ankur and Sharon nor Dylan and Jenny hit their auction reserve, which can be a financial death sentence.
The Block recuperates all the money that’s made under the reserve price, while the contestants score all the profit. If your house is too expensive and your reserve price is too high, then going on The Block can be a financial risk.
This brings us to the 2023 season of The Block. According to realestate.com.au, this season’s reserve prices might be incredibly high.
But why is realestate.com.au alleging this? Well, it’s because Domain has recently dropped a guide of The Block’s 2023 house prices. The current prices listed are lower than what The Block paid for them.
The Block’s 2023 House Prices
In the middle of 2022, The Block paid $1.43 million for five properties on Melbourne’s Charming Street. If all of these properties sold today, at their max estimated value, their total would be $1.35 million. That leaves a shortfall of $80,000, not including the amount of cash spent on the renos.
A regular Block bidder, Frank Valentic, is very concerned about what this might mean for this season’s finale.
“I’ve bid on around 60 Block properties,” Frank said, “the reserves would usually be at that $2.7 million to $2.8 million range, given that’s the highest end of the price guides.”
Frank believes that if each reserve is around this ballpark, then the contestants might make some money. However, if each reserve is over $3 million, Frank thinks the finale will be a “disaster.”
“They’re playing in uncharted waters at this level in that suburb, there’s only been two sales over $3 million in the last two years,” Frank explained.
What’s more, Frank ominously declared, “I’d be very nervous if I was the contestants going to this auction.”
However, it’s worth noting that the Aussie real estate market is truly a wild beast. Anything can happen on auction day.
Want more of The Block? Read all our content here, and click the links below:
- Is the Finale of This Year’s Block Already in Trouble?
- Why We Love The Block — Even in a Cost of Living Crisis
- A Definitive Ranking of Every Block Cheating Scandal
Read more stories from The Latch and subscribe to our email newsletter.