Was Adrian Portelli the only reason The Block Phillip Island was so much more successful than Gisborne?

We can all agree The Block 2024 was absolutely, categorically, and undeniably a wild ride. And it was also a raging success.

Set in Phillip Island, the 20th season culminated in last weekend’s auction finale, where all five homes sold under the hammer, and the contestants took home a whopping $5.43 million between them.

If we look back to 2022, the first and only other time The Block strayed outside of a capital city, the auction finales in Gisborne were more of a commiseration than a celebration.

Except for Omar and Oz’s record-breaking win, there were two pass-ins, the season favourites Tom and Sarah-Jane took home just $20,000, and one couple, Gold Coast couple Dylan and Jenny, walked away from the show with absolutely nothing.

So, why was this season so successful? Was it just the Adrian Portelli factor, or is there more to unpack?

And with The Block announcing it will be heading to regional destination Daylesford next year, is the show on a regional winning streak or could it fall flat?

Adrian Portelli bought every house – but he had competition

Adding to the drama on the 2024 season of The Block, billionaire Adrian Portelli revealed after the auctions that he had, in fact, bought all five properties. He then confirmed this would be his last appearance on the show.

In recent days, the founder of online promotions company LMCT+ has been open about his intention to secure a win for Maddy and Charlotte, and had advised the girls to position themselves last in the auction order. Portelli made a knock-out bid of $3.5 million for the sisters’ house, giving them $1.55 million profit plus $100,000 winnings.

And it wasn’t his first rodeo. Last year, he bought three Block properties in Hampton East. And in the 2022 season in Gisborne, Portelli bid on but missed out on Omar and Oz’s property. He later went on to buy one of the properties that passed in at auction.

Portelli’s astounding wealth and affinity for The Block have undoubtedly influenced the results in recent years. But it is important to note that in this season on Phillip Island, he had competition.

The houses fielded strong interest among buyers, defying Melbourne’s broader weak property market. And there were serious bidders in the auction room.

“There were more bidders than at Gisborne and Hampton East,” says buyers advocate Frank Valentic, who had multiple clients keen to purchase last weekend. 

It’s possible that all five homes would have sold even if Adrian Portelli wasn’t bidding.

“Apart from the last auction, which we don’t know where it would have ended up because [Adrian] put in a knock-out bid of $3.5 million … at every other auction, he was probably $100,000 ahead of the other buyers,” says Valentic. “There was a fair bit of interest.”

Price matters: The Phillip Island houses were more affordable

This year The Block properties in Phillip Island were all listed with price guides under $2 million – substantially cheaper than in previous seasons. The reserves were set at $1.95 million, with the exception of House 5, which went to auction with a $1.9 million reserve.

Last year, the reserves for the Hampton East properties were between $2.97 million and $3.35 million. In Gisborne South, the reserves were $4.08 million.

Frank Valentic said the latest season’s pricing was more accessible, given the reserves “were literally half the price of the Gisborne properties”.

“I certainly had more buyers interested in Phillip Island,” he said.

Estimated price guides for the next season are yet to be determined, but Will Walton, director of Belle Property in Daylesford, said the price point will be critical.

“The real estate formula for a good auction is having a competitive reserve and attracting competitive bidding,” he said. “The Gisborne reserves were quite high.”

Asked if Daylesford could follow the success of the latest season, he said: “Like Phillip Island, the reserves will have to be realistic.”

Location, location, location: ‘Gisborne was the middle of nowhere’

The success of the latest season could also be attributed to the reputation and desirability of Phillip Island as a destination. It is a popular holiday spot known for its beaches, wildlife and the grand prix.

The regional Victorian town of Gisborne doesn’t hold the same gravitas. Although it is a stunning locale, it just isn’t as well known.

“Phillip Island has a lot of attractions compared to Gisborne,” Valentic said. “And it was Gisborne South – it was out in the middle of nowhere.”

“In Cowes, you could walk down to the beach or down to the shops. The coastal location had a lot to do with it.”

Valentic said his clients mainly had wanted to purchase a holiday home and rent it out on short-stay websites when it was not in use.

He believes Daylesford is a stronger tree-change destination than Gisborne. “It will have the Airbnb factor that Phillip Island had,” he said.

Daylesford real estate agent Will Walton said the town had built and maintained its reputation. “Brand awareness of Daylesford is extremely strong nationally,” Walton said. “We have an extremely hard-working and successful tourism board.”

“We don’t rely on sun, sand or snow. It’s all to do with wellness, day spas and culinary establishments – the paddock-to-plate type scenario.”

Was design the decider?

One of the major drawcards for the Phillip Island properties was the communal areas and wellness amenities in the complex.

In the lead-up to the auctions, the home’s real estate agents said buyers had been impressed with the pool, day spa and tennis court.

The Phillip Island homes were also on regular suburban-sized blocks with decent front and backyards. In comparison, the Gisborne homes were on much larger parcels of land.

“One of the challenges with Gisborne South was it was on acreage, so it was a lot of maintenance,” said Valentic. “The outside farmland was not very developed, so they would have had to spend a bomb getting it all landscaped and irrigated.”

Interestingly, Valentic said the communal areas in Phillip Island had also been a turn-off for some buyers, as body corporate fees totalled $15,000 per year. Some of his clients had also expressed concern the communal areas could be noisy and messy if the homes were rented out as short-stay accommodation.

“I hope they don’t have communal facilities in Daylesford,” he said. “It was more of a negative than a positive because of the cost and the potential noise factor.”

Will The Block be a success at Daylesford?

With Adrian Portelli bowing out of The Block, the next season might mark a return to some resemblance of reality when it comes to the auctions.

Frank Valentic said he wouldn’t rule out Portelli making a comeback, given that it was “part of his business and marketing”.

“I think it’d be good for the show overall to give real, normal buyers a chance,” he said. “I took buyers down there for the last five weeks … they’ve missed out and they’re disappointed.”

“At the end of the day, who knows what is going to happen?”

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