The Block 2015: were the apartments a bargain?

It’s reality television’s hottest real estate game, but for the exclusive few who can afford to buy bricks and mortar on the small screen, there are still market realities to face – none as important as getting a good price.

But buyers who splashed the cash to buy into The Block apartments in South Yarra this week can be relieved to know they got more bang for their buck than those who bought the townhouses on the show earlier this year in the same suburb.

The price paid per square metre for the Blocktagon apartments was significantly cheaper than what was forked out for Triple Threat in April.

Buyers paid between $7,700 and $10,200 per square metre for the hexagonal apartments on Affleck Street, on the corner of Punt Road and Commercial Road, which were all 225 square metres.

In Darling Street, they paid between $10,000 and $12,700 per square metre for less real estate, with townhouses ranging between 180 square metres and 216.9 square metres in size.

So was it a bargain? Or did the buyers on Triple Threat over pay?

Buyer’s advocate Nicole Jacobs, who purchased two of the apartments for clients on Wednesday’s finale, said when tax depreciation and the apartments’ luxury inclusions were factored in, it was good value buying.

“When you look at the penthouse at $2.3 million, and then look at over $100,000 worth of furniture included, you have got an absolute bargain,” Ms Jacobs said.

But Hocking Stuart agent David Wood, who sold Kingi and Caro’s apartment this week, said the price paid was consistent with the South Yarra market.

“I don’t think they were cheap, I think it was fair,” he said.

Mr Wood, who also sold Josh and Charlotte’s townhouse in Darling Street, said buyers were willing to fork out a little more for the prime location near South Yarra station.

“Darling Street was a slightly superior residential location,” he said.

Jellis Craig agent Andrew McCann, who sold Dean and Shay’s penthouse this season and Darren and Deanne’s townhouse last season, agreed the central South Yarra location of Darling Street accounted for the higher price.

“[The Blocktagon] didn’t enjoy same level of amenity and position as last season,” he said. “But I would argue the result was certainly better than average [for the area] and well ahead of what we thought.”

South Yarra agent Sarah Case from Kay and Burton, who was not involved in the program, said the prices were moderate for the suburb.

“I think $7,700 [per square metre] is very reasonable and I’d say $10,000 [per square metre] is still fair, considering the position,” Ms Case said. “It’s not triple-A South Yarra real estate, given it’s on the border of Prahran, which often has a discounted aspect, but it’s still very reasonable.”

She said prices in South Yarra can soar as high as $20,000 per square metre in the Domain precinct, but buyers usually paid between $12,000 and $13,000 per square metre to get into the suburb.

Ms Jacobs said this season she bought on behalf of two investors, but last season, it was owner occupiers who snapped up the Triple Threat townhouses.

“The Blocktagon was prime real estate for really savvy investors,” she said. “It’s a great position for a great price, which allows them to get a great return.”

Ms Case agreed the investors interest this season also likely paid into the price.

“People are willing to pay a little more if they live in it themselves,” she added.