The high-stakes bidding wars that once captivated audiences of The Block have been blamed for this season’s finale flop. According to property insiders, these intense battles have driven price expectations far beyond market value, resulting in disappointing auction outcomes. Aus proptech CEO Aaron Scott pointed to billionaire Adrian Portelli as a key figure in inflating the value of homes featured in past series, which has left this year’s contestants feeling undervalued.
In the latest season, two out of the five houses failed to sell at auction. The reserve prices, set more than $2 million above the Daylesford median house price, have sparked claims of unrealistic expectations. However, Scott, co-founder of real estate agent comparison service bRight Agent, contends that these reserves accurately reflect the market value for high-end properties in the Victorian town.
“If The Block prices are out of touch as some claim, then perhaps it’s because billionaires and millionaires have driven up the price expectations of both contestants and viewers,” Mr. Scott said.
The Impact of Billionaire Bidding
Adrian Portelli’s influence on The Block began in 2022 when he entered a bidding war against Danny Wallis for Omar and Oz’s House 5. The property sold for $1,586,666.66 above its reserve, setting a record for the highest profit ever made in a Block auction. This marked a significant turnaround from the previous five years, during which the average profit per house on auction day was less than $500,000.
During that season, reserve prices were set at $4.08 million, and most homes sold close to this figure, either at auction or shortly after. This indicated that the reserves were reasonably priced at the time, according to Scott.
Escalating Bids and Market Disruption
As the seasons progressed, the divergence between reserve prices and auction outcomes became more pronounced. In Season 19, Portelli paid $5 million for Steph Gian’s house, significantly raising the auction bid from the previous $4 million. He continued this trend by purchasing Eliza and Liberty’s house, outbidding Danny Wallis’ $3.09 million offer by over $1 million, ultimately securing it for $4.3 million.
Portelli’s theatrics reached a peak in Season 20 in 2024 when he purchased all five properties, paying an average of over $3 million per house despite reserves set at less than $2 million.
“No wonder The Block winnings and contestant expectations have been inflated of late — billionaires have been inflating them,” Mr. Scott remarked. “It’s not that the reserve or market pricing is out of touch, it’s that the billionaire and millionaire bidding got way out of hand.”
Looking Ahead: A Return to Realism?
Scott anticipates a shift towards more consistent pricing and a reflection of true market values in future seasons of The Block. Without the presence of billionaire bidders who escalate auction bids by millions, the expectation is that prices will align more closely with reserves.
“In the absence of billionaire bidders who are upping the auction bid by $1 million at a time, of course you’re going to see more realistic prices,” Scott predicted. “I think that each of The Block houses will sell, and I think they’ll eventually sell for close to the reserve price.”
This development comes amidst broader discussions about the impact of wealthy investors on property markets and the entertainment value versus financial realities of high-profile auctions. As The Block continues to adapt to these challenges, the show’s future may hinge on balancing spectacle with sustainability.
