The Block‘s auction gave us five successful sales, but there were some huge profit gaps between the teams.
While Courtney and Sev to a record-breaking $1.27 million, Chantel and Wyatt finished $367,000 above reserve.
Now, New Idea hears that Houses 1, 2 and 3 were actually at a barely-addressed disadvantage.
It seemed like Houses 4 and 5 got the short straw due to their restricted sea views, however, one real estate agent insists this was never the case.
In fact, the sea views weren’t actually a huge monetary draw for the first three houses due to the fact that a neighbouring development threatens one of their biggest selling points.
“If you hadn’t visited the site and only went off the shows storylines you would think Houses 4 and 5 were at a disadvantage but the truth was that their views will not change,” an O’brien Real Estate agent explains.
“It was a major talking point for buyers but was never included in the show’s narrative.”
Stavros Ambatzidis tells New Idea that the land value of Mount Eliza actually decreases as you go down the hill, putting Houses 4 and 5 in superior stead for the auction.
While Houses 1, 2 and 3 appear to enjoy some of the most breathtaking views across Port Phillip Bay, there was one significant catch that viewers may not have fully appreciated.
Insiders tell New Idea that the vacant parcels of land surrounding Houses 1, 2 and 3 could eventually accommodate substantial luxury residences, potentially blocking much of the water views that made the three homes so desirable.
“Those spectacular outlooks were never necessarily going to remain untouched,” Stavros adds.
In fact, concerns were raised that future construction could completely eliminate the lower-level ocean outlooks of Houses 1, 2 and 3, while dramatically reducing the views available from upstairs.
It meant prospective buyers weren’t simply purchasing the homes they could see on television. They also had to consider what the entire neighbourhood might look like in five or ten years.
And when you’re spending upwards of $3 million on a prestige property, that uncertainty can make an enormous difference.
While Houses 1, 2 and 3 enjoyed commanding positions and sweeping upper-level vistas, Houses 4 and 5 offered a different proposition.
Their placement within the estate, the positioning of their outdoor entertaining areas and the relationship between their pools and neighbouring properties made them particularly attractive to buyers considering the long-term usability of their homes.
Unlike the three properties above them, Houses 4 and 5 could potentially offer greater certainty about how their outdoor spaces would function once the surrounding development was completed.
That distinction may have been especially important to buyers looking for privacy, uninterrupted entertaining areas and confidence in their multimillion-dollar investment.
And this certainly showed at the auction. Courtney and Sev banked $4.72 million for House 4 while Rick and Tayla followed with a $4.355 million sale and a $905,000 profit.
By comparison, House 3’s Lisa and Rosco walked away with $550,000, House 1’s Adam and Jolene secured a $455,000 profit, and House 2’s Chantel and Wyatt finished $367,000 above reserve.
Although every team made a substantial profit, the difference between the results is impossible to ignore.
While design choices, buyer competition, land size and auction strategy undoubtedly contributed to the final results, the potential impact of future development offers another explanation for why buyers may have valued the properties differently, despite all having the same $3.45 million reserve price.
It’s a stark contrast from what viewers saw on TV, which heavily signalled at Houses 1, 2 and 3 holding the upper hand thanks to their views, despite Houses 4 and 5 having the bigger floor space.
