The Block auction results positive sign for Melbourne market

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Oct 30, 2017

The Block auction results positive sign for Melbourne market

All five houses in the 2017 series of The Block sold on the weekend, and though profits were down on the previous year, all sold for more than their reserve.

Josh and Elyse's winning house on The Block.
Image: The New Daily.

Josh (left) and Elyse (right), winners of the 2017 series of The Block, with Dave Hughes (centre), the buyer of their home.

In the 2017 series of The Block, contestants renovated five run-down weatherboard houses that had been relocated to a 2,989sqm site in Elsternwick, nine kilometres south-east of the Melbourne CBD.

The properties were auctioned on Saturday, with the final episode aired on Channel Nine last night.

All five houses sold, and though profits were down on the previous year, all sold for more than their reserve price.

The winners this year were the favourites, Josh and Elyse, who sold their five-bedroom house at auction for $3,067,000, making a profit of $447,000, as well as $100,000 in prize money.

Comedian Dave Hughes bought the home, and said he will initially rent it out but considers it a long-term investment.

Jason and Sarah were in second place, with a $387,000 profit.

Ronnie and Georgia were in third place, with a $161,000 profit.

Sticks and Wombat came fourth, with a $130,000 profit.

And Clint and Hannah were in fifth place, making a $95,000 profit on the auction of their home.

Elyse and Josh's auctioneer, David Wood of hockingstuart, told SCHWARTZWILLIAMS that four out of five houses sold under the hammer, making a clearance rate of around 80 per cent. Though The Block properties are different from anything else on the market, said Wood, a clearance rate of around 80 per cent is a good reflection of the general Melbourne market, he said.

The only property that didn't sell under the hammer, Ronnie and George's house, sold very soon after the auction.

Wood said that the incredible work, the appeal of the design, and quality that Elyse and Josh put into their property put it at the forefront from the outset.

"The thing that shone through was the quality, the style and the design, and the hard work," he said.

"If you're not jumping in front of buyers you're going to be left on the shelf," said Wood.

There were five bidders competing strongly at auction, said Wood. It was a "terrific house", he said, and a "good, strong" auction. Thousands inspected the homes in the lead up to the auctions.

Melbourne: biggest auction weekend of the year

“Melbourne has experienced its biggest auction weekend of the year with more than 1,500 homes going under the hammer with a preliminary clearance rate of 73 per cent," said REIV president, Richard Simpson.

The result was ahead of last year's pre-Cup weekend, when 1,251 auctions were held, though a preliminary clearance rate of 80 per cent was recorded last year.

In October 2017, Melbourne recorded the second highest number of auction sales ever for the month with 3,333 homes selling under the hammer.

“When final figures are released on Wednesday, it’s likely that this weekend will be an all-time record for the highest number of homes that have gone to auction in a single weekend," said Simpson.

“Auction volumes are set to decline significantly this coming weekend, due to the Melbourne Cup long weekend."

Sydney: buyers looking for value

REINSW president John Cunningham, told SCHWARTZWILLIAMS it was "business as usual" over the weekend in Sydney, with agents and auctioneers contending with a massive amount of property going under the hammer.

Cameron Kusher, head of research with CoreLogic, says the number of properties listed for sale in Sydney is up 19.5 per cent on last year, whereas Melbourne listings are down 1.7 per cent.

"The preliminary results showed no surprises with another mid 60’s clearance rate showing a continuing steadying of the market," he said.

"With stock volumes on the increase across most regions buyers are spreading thinner and are starting to get spoilt with choices.

"November will be a bumper sales month so as long as sellers set their targets based on the real market of today and not from six months ago," Cunningham advised.

Cunningham said agents must advise sellers that the buyers will be looking for value, as opposed to what the seller thinks it their property is worth.

"The 64% that sold on the weekend got that message loud and clear," said Cunningham.