Economy

Winners sneak in with just $4000 hammer price difference in Block Sky High auction results finale

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It was the narrowest of victories for the Adelaide sister contestants Alisa and Lysandra who now are thinking of becoming professional interior designers after winning the most profit in the 2013 Block Sky High apartment auctions.

Their win came after a $4000 difference between the top sale under the hammer and the second highest sale – apartment 5’s Trixie and Johnno securing a $1.605 million sale and apartment 4’s Madi and Jarrod who secured $1.601 million.

And then there was another $4000 difference between the winners, Alisa and Lysandra being $295,000 over their amended reserve and the runner-up couple, Madi and Jarrod, $291,000 over their reserve.

The Block Sky High auction sale prices:

  • Apartment 5 Trixie & Johnno – $1.605 million
  • Apartment 4 Madi & Jarrod – $1.601 million
  • Apartment 3 Bec & George – $1.507 million
  • Apartment 2 Matt & Kym – $1.455 million
  • Apartment 1 Alisa & Lysandra – $1.435 million

The profit amount over amended reserves:

  • Trixie & Johnno – $205,000
  • Madi & Jarrod – $291,000
  • Bec & George – $242,000
  • Matt & Kym – $250,000
  • Alisa & Lysandra – $295,000 plus $100,000 overall prize

There was competitive bidding that extended well above the reserve prices, with most opening bids being at above the conservative reserves.

“Multiple strong bidding at all auctions supported the positive Melbourne market sentiment,” buyers agent Frank Valentic tweeted after his attendance at the five auctions.

Buyers agent Catherine Cashmore tweeted a photo of the footpath crowd outside 142 Park Street, South Melbourne.

One buyer posed for photos in front their streetside auction signboard.

The pre-auction price estimates were cautiously given as $1.2 million plus, although the program did once speculate optimistically that the prices would range from $1.5 million to $2 million.

Property records show the production company, Watercress, spent $6.71 million for the four-star bizMOTEL, which closed its doors in late 2012.

Most commentators suggest this year’s Block Sky High auction results only give a partial indication of the state of the inner Melbourne apartment property market given the producers moderated their price expectations and also ramped up the game component allowing the varied adjustment of the reserves for each of the contestants.

Data from the REIV has South Melbourne’s median unit price up $14,000 to $525,000 in the last quarter. The luxury apartments were always expected to exceed the $1.08 million median house price.

Of course the series is mostly about entertainment in a game.

It’s not to say there aren’t valuable property lessons in the outcomes, especially like The Block 2011 in Melbourne’s Richmond when just one of the four Block cottages sold under the hammer.

They all then sold in quick time afterwards, and then rented at terrific gross yields, although one Cameron Street cottage is currently listed at reduced rentals.

The Block Sky High initial reserve prices were:

  • Apartment 5 Trixie & Johnno – $1.41 million
  • Apartment 4 Madi & Jarrod – $1.34 million
  • Apartment 3 Bec & George – $1.28 million
  • Apartment 2 Matt & Kym – $1.22 million
  • Apartment 1 Alisa & Lysandra – $1.16 million

Below are the discounts that were applied to the above reserve prices on auction day, which were the result of prizes won from assisting on the ground floor renovations.

  • Trixie & Johnno – $10,000 making an adjusted $1.4 million reserve
  • Madi & Jarrod – $20,000 & $10,000 making an adjusted $1.31 million reserve
  • Bec & George – $15,000 making an adjusted $1.265 million reserve
  • Matt & Kym – $15,000 making an adjusted $1.205 million reserve
  • Alisa & Lysandra – $20,000 making an adjusted $1.14 million reserve
  • This article first appeared on Property Observer.

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