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The Block Triple Threat 2015 Auction Results

Last night Channel Nine’s The Block handed out $3.165mil in prize money to the four couples, representing the biggest prize pool received on one single TV episode in the world.

Crazily enough, all teams left the show with at least a $665,000 boost to their bank balances, a stark contrast to the disappointing results of last season.

theblockThe auction results of the designer apartments on Darling Street in South Yarra were:

  • 1st – Dea & Darren – SOLD $2,290,000
    Reserve set at $1.455mil
    Profit of $835,000 plus $100,000 for winning
  • 2nd – Josh & Charlotte – SOLD $2,200,000
    Reserve set at $1.39mil
    Profit of $810,000
  • theblock23rd – Tim & Anastasia – SOLD $2,175,000
    Reserve set at $1.42mil
    Profit of $755,000
  • 4th – Jess & Ayden – SOLD $2,000,000
    Reserve set at $1.335mil
    Profit of $665,000

 

The four auctions were all fast paced and over in a matter of minutes with opening bids exceeding the reserve prices. In a split second Jess & Ayden made $365,000 thanks to a generous opening bid of $1.7mil smashing their reserve.

The winners and almost instant millionaires Dea & Darren were crushed last year after taking home just $10,000 for their hard work on The Block’s Glasshouse series in Prahran, what a turnaround!

theblock3The question every viewer was asking, were the reserves set too low? Or is it the market in Melbourne driving up the selling prices, especially for popular brand new furnished designer apartments in one of South Yarra’s most prestigious streets?

In Sydney, the citywide auction clearance rate hit a staggering 91% last week (APM), while the same week last year saw clearance rates at 71%. With median property prices in Sydney exceeding $900,000, it’s no wonder the auction clearance rates have jumped significantly in the last year. Sydney has led the Australian housing price growth with property values rising 14.1% in the last year, double that of nearest rival Melbourne with 7.2%.

In Melbourne, 87% of homes were sold at auction last week compared with 63% last year, so were The Block’s crazy results a truthful representation of the market? The market is definitely booming but we have to keep in mind that it is a TV show and they really did take a hit last season so reserves were probably on the conservative side.

Next season The Block returns to Prahran with the upcoming series to be filmed at the obsolete Hotel Saville on Commercial Road.

 

References
http://news.domain.com.au/domain/real-estate-news/the-block-winners-darren-and-deanne-jolly-pocket-almost-1-million-at-auction-20150429-1mw74e.html
http://www.news.com.au/entertainment/tv/the-block-result-what-happened-when-the-cameras-turned-off/story-fn8yvfst-1227088392377
http://www.news.com.au/entertainment/tv/deanne-and-darren-jolly-take-out-the-block-with-record-breaking-profit/story-fn8yvfst-1227327454814
http://www.news.com.au/finance/real-estate/record-for-sydneys-highest-auction-clearance-rate-smashed-again-amid-drop-in-volume-of-sales/story-fnd91nhy-1227322875446
http://www.theaustralian.com.au/business/property/sydneys-housing-market-auctions-set-record-clearances/story-fniz9vg9-1227322111435

 

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Do you think the property market will burst in 2015?

sydney

One of the most real estate obsessed cities in the world

This is a question real estate agents get asked a lot as we head into the final month of selling. It’s a dangerous question because really we don’t know the answer and no one else does either.

According to SQM Research, the median house price in Sydney’s inner fringe has now surpassed $1million. To many that seems absurd, we dreamed years ago about our homes being worth a million dollars and somehow our dreams have become reality, even if that millionaire reality is a far from palatial home we imagined many years ago.

SOLD $1,280,000 - 3/5 McDonald St, Cronulla

SOLD $1,280,000 – 3/5 McDonald St, Cronulla

In Cronulla it is now very difficult to find an entry level house on a small block of land for $1.3mil.  If you are thinking of buying an apartment in Cronulla, it is just as difficult to find something under a million dollars. Last month a 2 bedroom apartment with superb ocean views and only a single garage sold for $1.4mil.

If you are not in the market already, how do you get into a market where you have to be a millionaire to buy a basic home? Parents are panicking for their children, 30 and 40 year olds are becoming first home buyers.

Should we take the plunge in November 2014 or should we wait and see till February 2015?

SOLD $1,118,000 16 Targo Rd, Beverley Park

SOLD $1,118,000 – 16 Targo Rd, Beverley Park

This is the dilemma now facing many buyers. Sure, interest rates are low but when you have to borrow the bulk of a $1 million dollars plus stamp duty then the mortgage you end up with is not cheap.

The Reserve Bank has been recently warning us to stop getting carried away, to stop borrowing too much money, but so far this has not had too much of an effect on an insatiable Sydney market.

Anything can happen as shown with the Global Financial Crisis and we now live in a very interconnected world, where something that happens in another country, on the other side of the world can affect us here very quickly.

SOLD $1,570,000 - 5 Cook St, Caringbah South

SOLD $1,570,000 – 5 Cook St, Caringbah South

Unfortunately I don’t have a crystal ball but I did win the Melbourne Cup this year so if I had to have a punt on which way the property market was going to go next year I would say upwards, but not at the same intensity as this year.

NSW is now the economic locomotive of Australia and Sydney the most desirable city to live in. Property sales off the plan are booming which means the residential construction industry will also stay robust. Also the NSW government has embarked on huge infrastructure projects which will support thousands of jobs into the medium term.

A steady increase, then a plateau is my guess but full disclaimer here, I have really no idea, just 18 years of being a real estate agent in one of the most real estate obsessed cities in the world…

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