theguardian.com
The Block's Market Woes
The Block faces challenges in Victoria's flat housing market; expert predicts losses despite high advertising revenue.
English
United Kingdom
EconomyLabour MarketInvestmentReal EstateTelevisionMarket Trends
Channel NineThe BlockAdvantage PropertyCorelogic
Danny WallisAdrian PortelliFrank ValenticStephGianSaul Eslake
- Will The Block make a profit this year? Explain.
- Frank Valentic, a buyers' advocate, predicts that The Block will likely make a loss this year on the property sales alone, although advertising revenue should still generate a profit for the show overall.
- What is the main source of revenue for The Block?
- The show's main revenue comes from advertising, approximately $50 million annually, which offsets potential losses from property sales.
- What factors have impacted investor interest in The Block properties?
- Higher land tax, new Covid tax, Airbnb taxes, and increased body corporate fees are factors that have decreased investor interest in the properties, making it challenging for the contestants to achieve high profits.
- Despite the flat market, what is the expectation for this year's auction?
- Despite the flat investment market, the lower price point of this year's properties has attracted more interest than previous seasons, leading to expectations of strong bidding from first-time home buyers who were previously priced out.
- What is the price range of the properties featured in this year's season of The Block?
- This year's Block properties are priced lower than in previous years, ranging from $1.7 million to $1.85 million, which is impacting investor interest due to current market conditions.