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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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Our Obsession With Real Estate and Renovation TV Shows

What is it with all the TV shows on right now about renovating?! Is it because it is winter and we are all staying home and nesting? Channel  9’s “The Block” is well into its season of renovating in Melbourne and Top Design also started on Channel 9 last week, presented by Jamie Durie, then there is Grand Designs on ABC.

Next week we will have “The Renovators” on Channel 10, 6 nights a week. This is described as a cross between Master Chef and Grand Designs. There will be 26 contestants, ranging from real estate agents, interior design, builders and tradesmen. The show has purchased $3.3mil worth of property in Sydney, from inner city terraces, to a shopfront (I recognise the shopfront – Addison Rd, Marrickville).  I’m pretty sure from the commercials that local real estate agent Kim Gilmore is one of the contestants.

Anyway, I’m not sure what it is, maybe because I am in real estate but I can’t stand watching any of these shows, even though I may as well, because my sister is obsessed and tells me all about every episode every time I see her. If she thinks I am going to join her as a contestant team on The Block one year she can forget it!

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The auction year begins with mixed success in the Sutherland Shire.

The first auctions for 2011 in our area were held on Saturday 12th February and last night another 7 properties were scheduled to go to auction in rooms at Elouera Surf Club, Cronulla.

With a clearance rate of 57% for the first weekend of onsite auctions I was interested to see the clearance rate of in-rooms.

Two had already sold prior, a great start, so the remaining properties in our tracking area (postcodes 2230 & 2229) resulted in 2 passed in with a vendor bid, 1 passed in to highest bidder, 1 passed in with no bid and 1 sold on auction night. The end result is an auction clearance rate of 42%.

Just to compare with Sydneywide statistics, the clearance rate for Saturday was 69% according to Home Price Guide.

Since Saturday’s auction 1 property has sold and 1 of the properties last night was not far off a sale.

On Thursday night there are 3 more auctions scheduled, so far, all 3 are going ahead.

Check out our up to date auction results here.

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Auction Series Part 1: Auction VS Private Treaty?

How do you choose whether to put a price on your property or go to auction? There are a few simple questions a seller can ask themselves to help with this choice. They are

  • Is my property unique?
  • Is my property hard to price because it is so unique?
  • How many other properties are on the market with similar characteristics to my property that buyers would be comparing with?

An agent can tell you exactly what market conditions are like.

  • Is there a shortage of your type of property on the market?

For example in the middle of winter less people sell but this can be the best time to sell if your house faces north or west and gets loads of sunshine. If there are more buyers than sellers it is the perfect situation.

  • Does your property have a view, or is it in a highly sought after position?

Most agents will promote the auction process if your property has either or both of these features. If your house has a characteristic that will lead people to get emotionally attached and thus carried away at auction, go for the auction!

  • Is there any number of properties on the market like yours?

Think about what you would do as a buyer. A buyer will look at everything in their price range that seems comparable and if there are a lot of properties like yours on the market, choosing to go to auction could be a mistake. Remember buyers have to do all their inspections prior to auction day with no guarantee they will get the property. When there is plenty of choice for buyers, buyers will tend to look at properties with an asking price before they look at an auction property and spend money on solicitors, pest inspections etc.

Another reason for a vendor to go to auction is time constraints.

– Do you need to be sold in 4 weeks?

– Are you going overseas for work and in a hurry?

– Are you financially strapped and need out?

The auction process puts an end date on the process.

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Can you believe our state government is in surplus!

By March this year the NSW State budget swung back into a surplus of $1.7bn (SMH 26th May). Apparently this is due in very large part to stamp duty raised from the surging property market, post the Global Financial Crisis.

This contrasts with a deficit expected for 2009-2010 of $1bn as recently as December, 2009. Settlements for real estate sales in the booming March quarter should increase the surplus further. Not content, the government has decided to milk the property cash cow further by slapping the new land transfer tax on settlements after June 30, 2010.

The government will no doubt splash the cash during next year’s state election campaign. In the meantime proceeds of the $850mil lottery sale have been used to shore up the superannuation shortfall for NSW public servants (to the extent of $510mil).

Some of these super commitments won’t accrue for a decade. Why can’t the government share some of the proceeds now with ordinary taxpayers that are sick of being sucked dry with tax increases.

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Auctions Falter

The auction market has been steaming ahead since February this year with clearance rates often in the 80% range. Last week this all came to a grinding halt in our area with a clearance rate of 12% or 2 out of 12 (with one of these properties selling prior to auction).  Sydneywide the clearance rate was 64% according to Home Price Guide.

History repeats itself, 6 rate rises in quick succession, a new property tax, global uncertainty, volcanoes erupting, share market meltdowns, diabolical oil spills… And we are surprised that people are hesitating to buy or sell real estate?

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Apartment Living – The Midnight Gelato Dash

Lifestyles in Sydney are changing and in the city where housing is in short supply more people are choosing to live in apartments without compromising on luxury. Instead of renovating an old house on 600m2 block, buyers are choosing a prestige house-like proportioned apartment of 300m2 where every modern inclusion is at their fingertips.  These apartments are designed with space, light and ventilation in mind, conveniently located close to amenities, shops and transport.

Recently Beach & Bay Realty had the opportunity to launch the Drift Apartments at 10-12 Gerrale Street, Cronulla. A Sammut Development that was completed in January 2010. Local residents of Sutherland Shire, The Sammut family are high regarded developers. This boutique development of 11 exclusive apartments has set a new benchmark in Cronulla and is on par with the most prestige developments Sydney-wide. Located in the hub of Cronulla, across the road from local cafes and restaurants this is truly a lifestyle building.

With 2 apartments per floor, 300m2 approx floorplans, triple side by side garaging, enormous decks, movie rooms these apartments are not your average unit. Some of the new residents have already moved in and you only have to ask them how they are enjoying it to get a feel for the lifestyle change that comes from living in Drift.

“It has transformed our way of life”

“Friends love to come and visit and they whinge about mowing lawns – they get no sympathy from us”

“Oh we are trying to balance the midnight gelato dash with longer walks on The Esplanade so we don’t get fat”

“We can’t believe we didn’t do this sooner”

The problem now is that the idea of living in an apartment and having a low maintenance luxurious lifestyle (think wine fridge, Smart Home lighting & blinds, heated flooring) has taken off and demand is outstripping supply.This shortage of supply is set to continue if the statistics are anything to go by. Recently in the SMH article ‘When the Latest is the Greatest’, Urban Taskforce Australia pointed out that the number of apartments built in 2009 in NSW was fewer than in any year since 1987. Urban Taskforce detailed this further: Work started on just 8500 apartments in 2009, compared with the past 5 year (2005-2009) annual average of 13,200 (a 31% decline).

Cronulla shows us a perfect example of this shortage, there are today only 2 sites selling off the plan, “Nineteen” a development in Gerrale St & “Soleil” a development in Richmount St.

Thus the sale of the completed Drift apartments in January was popularly received. There are only 2 apartments remaining so if you are thinking of a luxury, low maintenance lifestyle change, please contact Beach & Bay Realty for a viewing of these stunning properties.

{Call Kylie Emans on 0418 690 317 or Natalie Vials on 0433 111 319 to arrange an inspection}

{Drift Cronulla, by Sammut Developments 10-12 Gerrale Street, Cronulla}

Drift Cronulla

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