Sunday, August 21, 2011

REIV: 100% auction clearance rate for The Block

REIV is reporting a 100% clearance rate for hit TV Series 'The Block'. "What else would you expect to see?", Robert Larocca was reported as saying. "The property market in Melbourne is still booming and tonight's auction results reflect this absolutely".

Larocca provided the following breakdown showing how the REIV came to their 100% clearance rate figure:

Sold: 1
Unreported: 3
Clearance Rate: 100%

The above is a joke of course (see my previous posts on REIV figures if you don't get it, LINK, LINK). Results are in and only 1 out of the 4 houses from series 'The Block' were sold on auction night. I haven't been watching the series, but came across this article which provides some more detail:
UNDERDOGS Polly Porter and Waz Jones have won The Block because they were the only contestants to sell their house at auction.

The much-hyped grand finale hosted by Scott Cam proved an utter fizzer with three of the four Richmond houses falling well-short of what had been considered very conservative reserve prices.

It could be weeks before a deal is stuck on the three remaining properties.

The auction debacle is also huge blow to Channel 9 and Watercress Productions - which reportedly shelled out $3.6 million for the rundown Cameron St houses.

They anticipated a very different ending to the runaway hit series after thousands of potential buyers turned up to the open-for-inspection days.

The disappointing result also comes on the heels of a Consumer Affairs Victoria investigation into the four agents marketing the properties - Hocking Stuart, Biggin & Scott, Woodards and Jellis Craig - amid suspicion of under-quoting.

Real Estate Insittute of Victoria spokesman Robert Larocca said the shocking auction result was proof the agents had been on the money with their quotes.

Mr Larocca said it was "surprising'' for three houses to be passed in after so much publicity. Herald Sun

The results speak for themselves and it's probably a fairly accurate reflection of the current state of Melbourne's property market (and that of most other areas in Australia also). Buyers are becoming smarter and no longer prepared to pay the ridiculous asking prices that have been achieved in the past.

A lick of paint and snazzy marketing campaign isn't going to see buyers shell out an easy million like it used to.


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