The Block. Is it for real?

  • November 26, 2012
  • Ayda Shabanzadeh
  • Investment

By now most of us will have watched The Block, seeing the teams take derelict homes and turn them into polished products ready for sale in just a few short weeks, but is it for real or is this just another case of reality TV not living up to its name?

For those who didn’t watch the finale, the houses on The Block, which was set in South Melbourne, went for an average of $1,445,000, which was  well above South Melbourne’s median ($967,000) and Albert Park’s median (1,290,000).

This led many in the property market to suddenly declare the property slump in Melbourne well and truly over. All based on the prices of a few terrace houses sold on a TV show.

The sad reality, as many more sensible experts have stated, is that the prices the homes on The Block went for have about as much connection to the Melbourne housing market as the Indiana Jones does to actual archaeology or James Bond does to real spying. In sum, none!

The houses on The Block went for far more than surrounding homes because they were on TV and the others weren’t. They will not hold that value, nor will their sale price have any effect on the wider housing market at all.