What a result. I love being part of The Block; it is great to help educate the contestants and viewers on what adds value to a property and what the current market expects to see.
Why did the properties sell at such a high price?
As a buyer’s advocate, many of my clients are investors. The Block apartments provided some very appealing tax depreciation benefits coupled with potentially strong rental income. These factors together meant that purchase at the right price The Block apartments may be positively geared.
The South Yarra location and scarcity of the property is also favourable and means the properties are likely to benefit from sounds capital growth.
Did The Block properties sell at realistic prices?
Given my valuation background, I base value on sales evidence factoring in current market sentiment. Generally speaking apartments and townhouses in South Yarra sell around the $8,000/m2 to $10,000/m2 of living area, depending on factors such as building size, location, orientation, car parking provided, accommodation, floorplan and level of finishes.
As a Melbourne investor, should I look at properties like The Block’s?
For an investor with a budget of $1.5 – $1.9 million dollars, The Block properties would of been a good investment. But over this budget, I would recommend to my investment clients be more discerning and purchase two or three apartments for the price of a single Block apartment or a single-fronted Victorian cottage on a separate title.
Take home lesson for viewers
All properties offer appeal for different reasons, while some offer an abundance of natural light, others are better configured and larger. While furnishings are nice to look at and add to the feel of a room, it’s the configuration that’s most important. Open plan kitchens, living and outdoor entertainment areas are favoured by homeowners and tenants as they provide an inclusive entertaining space. It is good to note that the furnishings are not be included in a professional valuation of a property.
What a fantastic result for the contestants who have worked so hard, Channel 9 and the owner occupier buyers who had their hearts set on a Block property.
About the author: Greville Pabst is a judge on The Block and the CEO of WBP Property, a leading property valuations and buyers advocacy firm.