Good results for The Block

The much anticipated results from The Block house auctions indicate that Melbourne’s inner-city housing market is alive and well.

All houses were sold at auction at well above the reserve prices reflecting strong competition from numerous bidders for each property.

The strong results are not surprising given the latest data from Australian Property Monitors reported that the South Melbourne median house price rose by 15.5% over the May quarter to $1,097,500 and was up by 7% since November 2011. Each of The Block properties was sold at considerably higher prices than the South Melbourne median ranging from $1,330,000 to $1,620,000.

Although the properties have no doubt benefited from the widespread exposure generated by the series, the result nonetheless confirms that buyer interest remains solid for quality properties in prestige Melbourne locations.

Dr Andrew Wilson is Senior Economist for Australian Property Monitors