Why The Block 2023 is looking at a potential disaster
The Block's producers and contestants may suffer financially in what could be the "worst series yet" in 2023, given the current economic climate, according to experts.
However, there is one saving grace for the next instalment of the Channel 9 reality series and that is the new location that’s been selected.
The hugely successful series sees five couples renovate a property each before selling it at auction, with contestants able to keep any profit above a set reserve.
In 2023 they'll be up against a different property market compared to the heated conditions enjoyed by fans of the show in previous series.
After staging a "tree change" season in Gisborne, located in Victoria's Macedon Ranges this year, The Block will return to Melbourne's Bayside in 2023 – the location having already been leaked.
Producers bought five classic brick homes in Hampton East at 14 Charming Street, 16 Charming Street, 18 Charming Street, 20 Charming Street, and 22 Charming Street, securing them all at once, costing $14.3 million.
The humble Charming Street blocks, which measure around 600sqm to 700sqm, will this time next year be occupied by high-end trophy homes, with the show's producers and contestants hoping to net big profits.
"The Block has paid a premium there, double what we would expect the properties to be worth. It could be financially the worst series yet.
"They're $7 million behind the eight-ball from day dot."
The median house price in Hampton East is $1.55 million, down from a price peak of $1.57 million in February, with a further drop in price expected.
Nationally, home prices have slipped 3.53% since March.
To be able to recoup their money in 2023, producers will have to do some good advertising and sponsorship deals, he added. Local real estate agents remain skeptical that the renovated properties will be able to sell and turn a profit.
Nevertheless, Mr Sibley, director of Buxton Hampton East remains optimistic The Block can set a new suburb benchmark and current property owners could benefit.
Mr Valentic said while it was "hard" to get buyers willing to pay $4 million on a property in Gisborne, it shouldn't be as hard to find those willing to spend $3 million in Melbourne's Bayside.
The question is whether that price will be good enough for producers and contestants.
Images: Channel 9