The Block's $3M Problem: Why Buyers Didn't Show Up?
In This Week’s How's The Market | Edition 137
The Block's $3M Problem: Why Buyers Didn't Show Up?
What This Means for Regional Property Buyers
The Block's $3M Problem: Why Buyers Didn't Show Up?
Everyone has been saying the Melbourne market has been performing well.
We’ve been saying it.
Data centres are saying it.
Buyers agents are saying it.
Real estate agents have been saying it.
So why did the Block properties in Daylesford struggle to sell so badly?
Even with what can only be described as the greatest marketing campaign strategy for a property sale (a literal television show).
It’s because not all markets are equal and Daylesford was an extremely ambitious choice for a location to aim for $3m+ homes.
So let’s take a look at why.
Supply and Demand in Daylesford
This is where most people either gain momentum or stall completely.
Speak to a mortgage broker as soon as possible to understand your borrowing capacity while viewing properties in your price range.
When you find that $950,000 property you want and learn you could afford it with focused saving, your motivation skyrockets.
The 8-year timeline isn't a joke people procrastinate for years avoiding that first broker conversation.
Beautiful Homes, Wrong Location
These homes are beautiful. The contestants did stellar work. Every property is gorgeously finished.
But they're trying to attract Melbourne buyers. And Daylesford is an hour and a half from Melbourne.
My friends paid $850,000 for a farmhouse on an acre backing onto Wombat Bush Reserve. Yes, it's smaller, but it offers the true Daylesford experience.
Where It Went Wrong
They bought in an estate with 68 blocks. The five Block houses back onto medium-density townhouses - maybe 15 looking into their backyards. Right where the pools are.
They're also backed onto two highways and a roundabout. There's a Pet Stock across the road.
If you're paying $3 million, do you want a commercial building in your view?
What $3 Million Buys In Daylesford
Below are two sales in Daylesford:
88 West Street, Daylesford, Vic 3460
- Sold on 24 Mar 2021 for $3,000,000
- This property was on 4,406m2 (2086m2 larger than Cedar street).
- MUCH better location in Daylesford
- Sold at the peak of the market and currently in 2025, we are still not back to where the peak was in 2021
12 Indigo Lane, Daylesford, Vic 3460
- A more recent sale that occurred on 16th Sep 2025
- I cannot publicly disclose what this property sold for, however, I can say that it was quoted: $2,900,000 - $3,190,000 and that it - sold below the bottom end of the range by a good amount.
- This property was on 1.88 hectares of land - or in other words 18,800m2
What Else Is Online?
33A West Street, Daylesford, Vic 3460
- Quoted: $2,495,000 - $2,695,000
- Not the same spec as the block houses internally but architecturally brilliant and at a significantly less cost
7 Candlebark Court, Daylesford, Vic 3460
- Quoted: $2,500,000 - $2,750,000
- Double the land as the Block houses
- Significantly better aspect
Which would you pick out the above?
Design Problems
Same floor plan for all. The garages are difficult - you'd reverse daily.
The master bedroom opens directly into the kitchen. Hallways exist for privacy. They got this wrong.
The pools are Plungies. On half an acre, you want a big pool.
Reserve Reality
The reserves were ridiculous. They needed $2.2-$2.3 million reserves to sell in the high twos. Instead, way over market value.
The Lesson
This reinforces why we focus on location.
Location is number one for future value. You can't change where a property sits.
The contestants did beautiful work. The producers cooked the location choice.
At $3 million in Daylesford with an $850,000 median, you need perfection. Best location, best views, true scarcity.
Beautiful interiors can't overcome location challenges and overpricing.
The market will always tell you what something is worth. This year, it told The Block that Daylesford wasn't ready for $3 million homes in a housing estate.
Stay ahead of the market - get the real auction results every week!
What The Agents Are Saying
Some agents are reporting incredible results. Others are really struggling.
Under-quoting is a real challenge. I've spoken to buyers who've missed out on four or five properties in two months. Everything feels under-quoted and the market seems crazy from their perspective.
But then there are other stories. Buyers who sold their homes toward the bottom of the range after passing in.
Competition isn't what everyone expected. Not every home is getting five bidders. We saw properties we expected to sell pass in last weekend.
The market is performing well - much more so than last year - but it's not screaming along.
The Wow Factor!
40 Heyington Place, Toorak, Vic 3142
A Toorak Estate of Grand-Scale Elegance.
Why it WOWs:
6 beds, 5 baths, luxe master retreat
5.3m granite island, Gaggenau & Miele kitchen
1,500sqm corner block with resort-style pool
Basement garaging, home office & multiple living zones
Price guide : $20,000,000 - $22,000,000
Final Thoughts
Location will always trump interior design when it comes to property value.
The Block proved this year that no amount of television exposure or beautiful finishes can overcome fundamental location challenges and overpricing for the area.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
