The Block is officially back for another year with five new properties ready for renovation.
The 2026 Mount Eliza site has already caused quite the stir, with its prime location providing the first sea views in the show’s history.
While sweeping views of Port Phillip Bay might seem like a huge plus to the untrained eye, New Idea‘s property experts reveal it might actually cause a much larger issue.
“The sea views will definitely add value to this season’s homes and are likely to push the reserve prices higher, especially being in the Mornington Peninsula,” Rebecca Cardamone, Property Developer and Owner of iSubdivide, tells us.
Adding to a home’s value is usually a good thing, but with three houses from The Block 2025 remaining unsold, there are concerns that the sea views could push the 2026 prices to an unattainable level and discourage buyers.
“After last season’s criticism that reserve prices were set too high, I believe it’s really important The Block gets the pricing right,” Rebecca explains.
“If the reserves are too high, later auctions could struggle, with fewer bidders left standing. Strong, realistic reserve prices will be key to ensuring every team has the best chance of selling and protecting The Block’s reputation – as we’d love to see all contestants benefit this season – not just a few.”
Matt Jackson, the CEO of David Reid Homes, agrees that the view will impact the auction prices, explaining that a “premium” view is the one thing that a buyer can’t add themselves.
“As a rule of thumb, a coastal site with a view will add 20 to 25 per cent to the cost compared with building the same home on a flat inland block,” he says.
Rebecca also notes that the “novelty” of The Block may not help the homes at auction this year, given the financial challenges plaguing the property market.
“While buyers typically love the idea of owning a home from The Block, I believe in this market that novelty is wearing off,” she says.
“With cost-of-living pressures, higher interest rates (leading to lower borrowing capacity) and ongoing economic uncertainty, this season will have a lot of challenges at auction time.”
Rebecca says that even the wealthiest buyers are being more careful with their money due to the cost-of-living crisis, with the Mornington Peninsula area posing added challenges.
“Buyers are being very cautious right now because of the cost of living, higher interest rates and political uncertainty,” Rebecca shares.
“Right now, buyers in high-end suburbs across Victoria are suffering the biggest loss in terms of property prices going down. Therefore, the wealthier buyers will be a little more careful with their money.”
“You will have two challenges here: Buyers will be reduced, and the buyer’s budget will be reduced.”
“The Mornington Peninsula in particular also presents a unique challenge.”
“These homes are likely to appeal to holiday-home buyers, retirees or wealthier purchasers looking for a lifestyle property. Because multiple homes will be auctioned in the same location, The Block will need enough buyers competing for all of them- not just one or two.
“Another factor is the design. If the homes are multi-level (even with elevators), it may not suit downsizers or retirees who appreciate single-storey homes, and these are often the strongest buyers in this market.”
“Younger families may love the multi-level homes, but reduced borrowing capacity means they may not afford them.”
Will the 2026 Blockheads walk away with life-changing profits, or will high reserves leave their coastal dreams stranded on the market? Only auction day will tell.
For more news, save New Idea as your Preferred Source on Google here.
