The Block’s upcoming auctions in Mount Eliza will serve as a test for Victoria’s revised auction laws, with reserve prices set at $3.45 million—$150,000 below the initial price guides—and disclosed a week early. This adjustment comes amid a local market correction, where house prices in the area have fallen by $77,500 over three months. The lower reserves and extended disclosure period may determine whether all five homes secure buyers in a cooling property environment.
New data from Domain reveals the median house price in the Mornington Peninsula region declined by 7.2% in the three months to September, reinforcing broader signs of market softening. The area, which includes Mount Eliza, Dromana, and Rosebud, saw only 49% of auctions succeed in September, below Melbourne’s overall clearance rate of 58.4%. With The Block’s future dependent on these sales, producers have adjusted reserves downward, responding directly to shifting buyer sentiment.
The early release of reserve prices marks a departure from past practice. Under Victoria’s updated rules, sellers must now disclose reserve prices at least seven days before auction, with any subsequent changes requiring a new auction date. By revealing the figures two weeks in advance, Channel Nine avoided potential delays while allowing buyers and agents additional time to evaluate the properties. The network has confirmed reserves will not change before the auction, though the reduced floor and extended disclosure may not fully compensate for weaker buyer demand in the region.
Producers slash prices to secure sales
Julian Cress, The Block’s executive producer, stated the reserve reductions were made to ensure sales rather than maintain unrealistic price targets. “The entire future of The Block depends on these auctions,” he said. The show’s guest judge, Alice Stolz, Domain’s national property editor, described the move as a practical demonstration of Victoria’s new auction rules. “The Block is now facing the same challenge many Victorians encounter: determining a realistic floor price,” she noted. Early disclosure, Stolz added, could either force sellers to adjust expectations or reveal stronger buyer interest than anticipated.
Early feedback from agents suggests the transparency has already increased buyer engagement. Michelle Skoglund, listing House 1 for contestants Adam and Jolene, reported a surge in inspections following the reserve announcement. Ash Marton, selling House 5, called the lower reserves a rational adjustment that had removed a key obstacle for potential purchasers.
However, market conditions remain uncertain. Domain’s chief economist, Dr. Nicola Powell, highlighted the $150,000 gap between reserves and price guides as evidence of Channel Nine’s cautious approach. The extended disclosure period, Powell suggested, reflects a strategy to prioritize sales over maximizing profit, providing buyers with clearer pricing benchmarks.
Five luxury homes face market test
The five properties at 3, 4, 9, 10, and 2 Mackillop Place in Mount Eliza each offer three bedrooms, three bathrooms, and four parking spaces, except for 10 Mackillop Place, which has three parking spots. All homes share the same street, with 3 and 4 Mackillop Place providing additional parking. Producers have emphasized the properties’ comparable layouts, though depreciation assessments will influence final sale outcomes.
Domain’s data shows a broader trend: the Mornington Peninsula’s 7.2% median price decline over three months reflects Victoria’s wider market slowdown. While Melbourne’s September clearance rate stood at 58.4%, the Peninsula’s 49% figure indicates heightened buyer caution. Agents attribute this shift to economic uncertainty and changing priorities, with some favoring affordability over premium locations. The $77,500 median price drop since June has further narrowed the gap between asking prices and achievable market values.
