Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

The Block

<html><body>
Consumer Affairs’ uniformed officers were on site at The Block Glasshouse auctions on Saturday, and it isn’t the first time they’ve been visible at the sale of the reality TV show’s finale.
Earlier this year, on The Block Fans v Faves, Consumer Affairs were also present – finding no wrong doing.
For The Block Glasshouse, the producers worked closely with Consumer Affairs Victoria (CAV), according to director of CAV Claire Noone.
"Consumer Affairs Victoria has worked with The Block production team throughout the series, reviewing documentation in preparation for the auctions including new amendments to the Sale of Land Act which came into effect on 1 October, and our uniformed inspectors will be present to monitor the conduct of the auctions," Noone said.
"Consumer Affairs Victoria works closely with the Victorian real estate industry throughout the year to ensure a fair market for buyers and sellers across the state."
This year, there were four specific things on their radar:
<ul>
<li>Whether auction rules are displayed 
</li>
<li>Whether appropriate rules are followed 
</li>
<li>Whether pre-auction disclosures are made, in particular announcements about vendor bids and late bids 
</li>
<li>Recording the sell price and recording the on-market-price, for later comparison with estimated selling prices, where advertised</li>
</ul>
Main picture: A Consumer Affairs Victoria officer at a Block Glasshouse auction.
</body></html>

jduke-EHk3XBmHkn

Why Consumer Affairs were present at The Block Glasshouse auctions

<html><body>
The buyer who snapped up Simon and Shannon's apartment on The Block Glasshouse is an investor who missed out on apartments in The Block Fans v Faves.
Buyer's agent Frank Valentic of Advantage Property Consulting told Property Observer the investor was very keen on Simon and Shannon's apartment, and had previously bid on three of the apartments on offer in the show's last season.
After being priced out of the Albert Park apartments, the investor returned for The Block Glasshouse. According to Valentic, the buyer intends to rent out the apartment after settlement.
"Most of the agents were pitching furnished rentals at $1,500 to $1,750 per week," says Valentic, who notes apartments from The Block Fans v Faves were asking for around $2,100 in rent per week.
If rented out at $1,500 per week, the buyer of Simon and Shannon's apartment will be earning a 4.1% yield on their purchase. Should they find a tenant willing to pay $1,750 per week, the apartment will rent with a 4.7% yield.
According to SQM research, the implied gross rental yield for units in Prahran sits just north of 5.5%.
All three of the buyers Valentic represented at the weekend's televised auctions were investors. The other two did not secure apartments.
Valentic notes that while he predicted Darren and Dee's apartment and Michael and Carlene's would have the lowest selling prices, the $1.71 million price for Maxine and Karstan's apartment was a surprise.
"I didn't expect the third result," he says, explaining that it was "probably the biggest shock" of the auction.
The buyer's agent took around 25 buyers through the five apartments, with his clients rating Simon and Shannon's the best, followed by Maxine and Karstan's, and then Chris and Jenna's apartment.
</body></html>

jrichardson-uRX5hFdKfN

The buyer behind the winning Block Glasshouse auction

<html><body>
Guest observation
To all of Australia, The Block Glasshouse auction results were a massive shock.
It was the first time in a very long time there was a harsh realisation that vendors don't necessarily make hundreds of thousands of dollars above their reserve, and people do buy within their limits.
Take it back a few months, and people were high fiving and celebrating the success; last night we saw reality.
A lot of people expressed sympathy for the contestants that didn't make a lot of money from their sale.
It served as a somber reminder of the gauntlet you run when you play the property market.
There are thousands of everyday Australians who have missed out on gains from their own projects, with an even harsher rationality hitting them with no cameras, media interviews, endorsements after the hammer has hit.
But why did The Block go wrong? Here are the main reasons:
<ol>
<li>
The apartments were over capitalised The contestants were trying to sell such a premium product, making investors very cautious. When people buy property, they want to see the potential upside and where they themselves can make money. The problem with having the apartments so impeccably finished, is it made it harder for buyers to add value. Because of that, they realised they were most likely buying them at the peak of their value. The reserves were set with what the production needed to get back to make it viable, and it seems they may have put too much money in to making a high end product. 
</li>
<li>
Not even The Block can triumph simple economics There are a lot of factors that go into a property's price. But at a fundamental level, the rules of supply and demand hold firm.  Prahran has seen a huge amount of redevelopment in the past 24-36 months. Trilogy apartments, which is approximately 200 metres further up High Street, has 323 apartments on offer, with an apartment complex across the road also offering brand new apartments. With so much on offer, it's hard to compete with buyers shopping for value. 
</li>
<li>
The apartments were not necessarily built for the end consumer It's easy on a design show to create a beautiful showpiece, but this doesn't necessarily transfer to practicality, or ensure you get your money back. People want value for money above anything, and some of the apartments were so lavish that it lacked genuine real living opportunities. It's all good and well to live in a luxury masterpiece, but you have to ask if it provides a home for someone and if it is what they are after. 
</li>
<li>
There were better properties on the market for that money A simple reason to understand why consumers didn't bid the properties up, is their belief they could get something better for those prices. If you have a look at other homes for sale, prospective buyers could have bought: <a href="https://www.propertyobserver.com.au/https://www.homely.com.au/south-yarra-melbourne-melbourne-greater-victoria/listingdetails/448951" target="_blank">204/4 Cromwell Road, South Yarra</a> <img src="/images/2014/10/13/Cromwell.jpg" alt="">
An open spacious apartment in South Yarra, pictured above, available for less money. Or <a href="https://www.propertyobserver.com.au/https://www.homely.com.au/prahran-stonnington-melbourne-greater-victoria/listingdetails/520908" target="_blank">3 Mary Street, Prahran</a> for $1,030,000. Mary Street offers three bedrooms, two stories and an open verandah on its on title of land. <img src="/images/2014/10/13/3%20mary%20Street.jpg" alt=""> The free standing house pictured above is quoted at $1,030,000. Either way, the lessons learned are that reality TV shows aren't necessarily the way to success and people won't just buy anything. With strong demand, people do want to see value for money and something that can offer capital gains over the long term. Properties that are unique, have land, and potential upside for redevelopment will trump established apartments most of the time. Todd Schulberg handles all things marketing for <a href="https://www.homely.com.au/" target="_blank">Homely.com.au</a>.</li>
</ol>
</body></html>

ToddSchulberg-ooPiJQCUaR

Where did The Block Glasshouse go wrong?

<html><body>
Guest observation
The sales results on The Block may be shocking to some, but not to those of us who understand renovating and development risk.
Developing and renovating property by nature is a high risk activity. Many an enthusiastic investor has been sucked into the idea of renovating or developing for profit, without fully understanding the ramifications let alone their own risk profile or that of property developing as a strategy.
The results on The Block are evidence of the reality of what can happen when renovating; the need to fully understand the importance of location, the target market, the competition of other stock in the marketplace and not overcapitalising within the development itself.
Risk is the extent to which you are willing to expose yourself to loss, in return for a particular level of gain. This applies to an individual's personal tolerance for risk as well as the risk associated with different types of wealth creation strategies including renovating or developing for profit.
In short, The Block is a television program that is built around the strategy of renovating for profit. In each instance, the production company determines the type and location of the properties purchased. They take the risk hoping they will recover their costs while enabling the competitors to potentially win a cash prize and earn any profit made, over and above the reserve that they set (assuming there are profits).
The risk that the competitors take on board is their willingness to sacrifice income, time and time with family in exchange for a possible prize of $100,000 plus profit share. In doing so they are totally dependent on the production company purchasing not only the right type of property that will appeal to buyers (apartments or houses), in the right location (suburb and position in suburb), but ensuring they don't overcapitalise on the renovation, so that the reserve is reasonable and allows the contestants to make a profit.
So why is it that one of the worst properties (Chris and Jenna's) earned so much profit and three superior properties earned almost nothing by comparison?
What I observed in Sunday night's auction were several things:
<ol>
<li>There were at least two buyers who were prepared to substantially overpay for the first two properties, given their location, size and type of property (i.e. average location in a reasonable but densely populated suburb on a busy main road). These first two buyers skewed the results for the rest of the properties.</li>
<li>The three other buyers weren't prepared to overpay and once the first two buyers dropped out, there was little demand (competition) to drive the prices up beyond the reserve on the remaining three properties.</li>
<li>The calibre of auctioneer i.e. where they start the auction and how high their increments are can make a difference to the result</li>
<li>Auctions only work to create outrageous results when the demand for a property is greater than the supply, especially if the property is unique or boutique. The results indicate that The Block brand wasn't enough to make up for Prahran being an inferior location to Albert Park and even South Melbourne.</li>
<li>While design is a factor and important, it's not everything. Buyers want to ensure that they are also buying a property that has the potential for strong capital growth, even if it is as an owner occupier.</li>
<li>These apartments weren't on single floors, like those on The Block Sky High, or in an attractive boutique property like Fans v Faves. Neither were they houses, like the Dorcas St properties. Attracting ridiculous prices was always going to be a struggle.</li>
</ol>
In addition, the concept of buying below 'replacement value' is irrelevant if the renovator over capitalises on the renovation in the first instance. That is often just poor decision making on behalf of the renovator and means nothing when it comes to actual 'market value'. This is where the importance of suburb, location in suburb, level of competing stock on the market, type of property and other factors come into play.
While devastating for three of the couples who walked away with almost nothing, the moral of the story is that not all property performs the same way. It is a highly complex beast and not for the faint hearted.
Renovating or developing for profit is always high risk and only those with a high risk profile and solid understand of how to reduce development or renovation risk should undertake it.
Understanding these issues will minimise the chances of making costly mistakes and ensure the greatest possible change of success and importantly profit.
Miriam Sandkuhler is the founder of <a href="https://propertymavens.com.au" target="_blank">Property Mavens</a> - a specialist property advisory firm based in Melbourne. She is an Accredited Property Investment Advisor (PIAA), Licensed Buyer Advocate and REIV member and award nominated Buyer Agent, with fourteen years of real estate experience in two states. She is also the author of the book Property Prosperity.
Main picture courtesy of Channel 9. 
 
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MiriamSandkuhler-brdvzrAYV2

Let The Block Glasshouse results serve as a reality check for all would be renovators

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With Simon and Shannon's profits clearing some of the competition by $325,000, plenty of punters are wondering what exactly the boys did right.
The brothers didn't win the most challenges on The Block Glasshouse, but they and the runners up, Chris and Jenna, were the only two of the five teams to secure six figure profits.
According to Simon and Shannon's auctioneer Damien Cooley, a large portion of their win can be attributed to the auction order. The boys chose to go second, while Chris and Jenna were stuck with the first auction.
"The biggest component for the auctions was the lack in depth of quality buyers," says Cooley.
"It was pretty obvious to us leading in to the auctions that we felt that there were three or four quality buyers, and that was the reason we wanted to go earlier in the order of sale rather than later."
Cooley says many of the teams who tried to get one of the final auction spots were hoping to replicate the success of The Block Fans v Faves, when each subsequent auction resulted in a higher sale price.
But some of the contestants didn't seem to factor in the weaker buyer interest for this season's properties.
"This year was a bit different in the sense that the buyer pool was not as strong as in the previous season," Cooley, pictured below, says.
<img src="/images/2014/10/14/cooley-2.jpg" alt="">
Cooley auctioning Simon and Shannon's apartment on The Block.
An under bidder for Chris and Jenna's auction, represented by buyer's agent Frank Valentic of Advantage Property Consulting, ended up securing Simon and Shannon's apartment. The buyers of Max and Karstan's apartment, the third to be auctioned, was an under bidder on the first and second apartments.
"Once those buyers had all bought, there wasn't a lot of strength in the other buyers," Cooley notes.
"There were a lot of other prospective purchasers, but they weren't at the same level the others were at."
Cooley also believes there was another "game changer" at play: taking $50,000 bids.
"It's really important that you understand where your buyers are, where you think they might be at on price, and judge their strategy when they're bidding," he says.
"There's a lot of psychology involved and you don't have long to make decisions. I quickly decided to go in $50,000 increments."
He worked with Jellis Craig agents to secure the sale of Simon and Shannon's apartment, with the boys reporting that Cooley had recommended the agents to them.
The auction coincided tidily with Jellis Craig's brand relaunch, complete with new logo.
While the contestants for the next season of The Block haven't yet been locked in, a few prospective reality television renovators have already approached the Block regular to auction their forthcoming apartments.
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The strategy that won Simon and Shannon The Block Glasshouse

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Not unlike Kyle and Jackie O to court controversy, they tweeted out about The Block auctions claiming that without the Asian buyers, the contestants would be "screwed".
<img src="/images/2014/10/13/Picture%2038.png" alt="">
After a <a href="https://www.propertyobserver.com.au/https://twitter.com/kyleandjackieo/status/521226318659080192" target="_blank">number of retweets </a>and a wave of responses, some calling it a "conspiracy", a response from @hashhag noted "Asian bidders are the backbone of our auction market. Without them we could all still afford to live in Sydney."
Another, @playwithdom, suggested their funds come from rich parents in China, querying how anyone at 20 could afford the apartments.
The couple have been identified by Fairfax as 20 year old engineering student Shiji Ma and Yue Pan, who reportedly purchased the apartment for her parents.
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Tweet of the day: Without the Asian couple bidding, Block contestants "screwed" say Kyle and Jackie O

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The latest series of The Block Glasshouse tried to make a silk purse out of a sow's ear.
And the reduced pool of savvy potential buyers - and bidders - didn't buy into all the associated hype as the final three auction results limped over their reserves.
With a $1.6 million average sale price - reflecting around $6900 a square metre - it actually almost succeeded, though the viewing public was deprived if they only desired uplifting show business hoopla.
It was thwarted in the end by its b-grade High Street, Prahran location. For Sydneysiders it would be like flogging prestige apartments on Parramatta Road, Annandale, which has very nice houses away from its busy thoroughfare, though without the trams. Certainly Prahran and some of its Chapel Street is a cosmopolitan suburb, but not quite everywhere yet in the immediate neighbourhood.
The most profitable selling market would have been student style - or Gen Y workers - rather than vast luxe given its proximity to Swinburne University with the 6 route tram out front and the railway very close via the Percy Street garage exit.
So the deep-pocketed baby boomer buyers that are the traditional recent Block apartment auction attendee either understandably didn't turn up or showed suitable reserve and mostly kept their hands in their pockets given the mediocre Prahran location. Couldn't imagine the baby boomers heading a few doors along to Misty’s Diner, a genuine American diner right next door to a <a href="https://www.theworkscarwash.com.au/theworks/" target="_blank">hand car wash</a> at what one blogger recently described as <a href="https://filluponbread.net/2014/06/26/mistys-diner/" target="_blank">the bleaker end of Prahran High Street</a>.
The local gay population didn't appear to embrace much of the Glasshouse either.
Also property success is often premised on population trends so those big three bedroom apartments were perhaps oversized for the very obvious Prahran composition of households without children. It sits at around 70% compared to the 50% Melbourne average. Ditto the lone person households category in the last census sat at around 40% of Prahran households compared with the Melbourne 23% average. There were just the 99 households in Prahran with five or more occupants.
Also RP Data puts the median Prahran apartment price at <a href="/news">around $510,000</a>, and going backwards a bit after its recent peak, presumably because of the enormous increase in newly constructed stock. Prahran houses have a $900,000 median. Just across High Street is for instance, ART, a block of 50 apartments that has incorporated supposed hip art into its eastern facade ands its foyer after a Facebook page where people could vote for their favourite. <a href="https://www.artprahran.com.au" target="_blank">Designed by ROTHELOMWMAN for developer Crema</a>, ART included 26 one-bedroom apartments, 23 two-bedders and the three-bedroom, two-bathroom penthouse. 
The one-bedroom apartments range from 51 square metres to 76 square metres; the two-bedroom apartments from 69 square metres to 87 square metres; and the penthouse was marketed as 160 square metres. Back in 2011 the off the plan prices for all but the penthouse ranged from $346,000 to $719,000, so from $6700 a square metre to $9400 a square metre. The penthouse fetched $1.16 million on its June settlement, so around $7250 a square metre. The former petrol station-turned residential development was offloaded by the Deague family at $5.5 million after they scrapped plans to build a hotel as part of its "art" series chain. 
The much desired $2 million plus hopes for the Glasshouse proved elusive. One Melbourne buyers' agent has egg on their face for suggesting the $2 million likelihood even on auction eve when the feedback ought have been obvious.
"This is reality … the property market is the one thing we can't control," bemoaned decor consultant Shelley Craft during the Channel 9 telecast.
“Something happened ….that’s not easily explained by me or frankly by anyone else,” producer Julian Cress told easily convinced, naive newspaper reporting attendees, adding they used the same valuer in each and every series.
The full results:
<ol>
<li>Simon and Shannon, 2/125 High Street: $1.9 million ($335,000 over adjusted reserve)</li>
<li>Chris and Jenna, 2/121-127 High Street: $1.81 million ($310,000 over reserve)</li>
<li>Maxine and Karstan, 3/121-127 High Street: $1.71 million ($40,000 over reserve)</li>
<li>Michael and Carlene, 1/125 High Street: $1.39 million ($10,000 over reserve)</li>
<li>Deanne and Darren, 6/121 High Street: $1.38 million ($10,000 over reserve)</li>
</ol>
The further into the auction finale - and the more Scottie slumped into his couch - viewers got to see just how hit and miss property renovation success can be when buyer demand doesn't go deep enough for the ill-suited, over supply.
They were lucky all five apartments of The Block Glasshouse were sold under the hammer at their Prahran onsite auction, as the extended last offering brought flooding back memories of the Richmond auction disaster in 2011 when just one of the four Block cottages sold under the hammer.
But with metres of floor space over five floors, the Prahran building was almost double the size of the historic Dux House warehouse renovation at 47 O'Grady Street, Albert Park which the Watercress production company bought from billionaire businessman Lloyd Williams last year for $5.9 million. It was perfect for their flush buyer mix. 
<a href="/news/substance-over-style-as-chantelle-and-steve-win-the-block-2014-fans-v-faves">The Block Fans v Faves results</a> which secured a $9.6 million total in April were as follows:
<ol>
<li>Steve and Chantelle, 1/47 O’Grady: $2.47 million ($636,000 above the adjusted reserve)</li>
<li>Alisa and Lysandra, 3/47 O’Grady: $2.375 million ($616,000 above the adjusted reserve)</li>
<li>Kyal and Kara, 2/47 O’Grady: $2.44 million ($567,250 above the adjusted reserve)</li>
<li>Brad and Dale, 4/47 O’Grady: $2.31 million ($507,250 above the adjusted reserve)</li>
</ol>
It was a similar success at The Block Sky High too at 142 Park Street, South Melbourne parkland which secured five sales totalling $7.6 million, with Watercress having retained the sixth apartment, after paying $6.71 million for the four-star bizMOTEL, which closed its doors in late 2012.
 
<ol>
<li>Apartment 5 Trixie &amp; Johnno – $1.605 million - $205,000 over reserve</li>
<li>Apartment 4 Madi &amp; Jarrod – $1.601 million - $291,000 over reserve</li>
<li>Apartment 3 Bec &amp; George – $1.507 million - $242,000 over reserve</li>
<li>Apartment 2 Matt &amp; Kym – $1.455 million - $250,000 over reserve</li>
<li>Apartment 1 Alisa &amp; Lysandra – $1.435 million - $295,000 over reserve.  
</li>
</ol>
So the High Street Glasshouse office block now has six split-level, atrium apartments above two retail/restaurants premises after the production company, Watercress spent $8.25 million on the 1980s office building. The $2.5 million Brenchley Architects infill works schedule was mostly internal, and then the constantant couples spent their renovation funds.
The $8.2 million auction proceeds covered the initial outlay with Watercress retaining the sixth apartment plus two street front retail premises. And then there is all the ad revenue for Channel 9.
The winning Glasshouse apartment at 4/125 High Street, renovated by brothers Simon and Shannon Vos, had a southerly aspect overlooking busy, noisy High Street, so it was the hipster fit out that seemed to work in its favour.
The 249 square metre apartment was the second largest of the five on offer.
It's priced reflected the top $7630 a square metre.
Chris and Jenna with their runner-up offering had 277 square metres of floor space, making it the biggest apartment in The Block. But with just skylights and an internal terrace along with the rooftop terrace. It's price was $6530 a square metre.
Max and Karstan had the apartment at 3/121-127 High Street Prahran, with a sunny north-westerly aspect. The couple also have an extra little, almost useless room. The sale worked at to be $7125 a square metre as their apartment was 236 square metres of floor space.
Michael and Carlene's apartment at 1/125 High Street has 236 square metres of floor space, and a southerly aspect. It was the poorest price at $5890 a square metre.
Deanne and Darren's apartment, 6/121 High Street, was the smallest on The Block, with just 186 square metres of floor space.
But it, however, had the most desirable aspect, facing northward and delivering city views. Its sale price reflected $7,419 a square metre, the second placed by square metreage.
Each apartment will also have 70 square metres of private storage and two car spaces.
Viewers saw it was a very close shave exceeding the reserve for the threesome of the contestant couples.
And there were two terrific over-reserve results on High Street in the ninth series of the Channel 9 series. 
It appeared the order of sale again impacted the result as it did in past series where investors, rather than home buyers, were at the fore, but this time it favoured those who went up in the auction order.
The first series of The Block in Bondi Beach back in 2003 came after the $1.95 million four block acquisition through the Channel 9 company. 
Such has been the success of the reality television renovation stress series that nowadays that doesn't even come close to the current day renovation costs. 
The next series at Darling Street, South Yarra might work out ok, though it is cheap serviced apartment heartland. Then onwards to the <a href="/expert-insights/investing/the-block-south-yarra-octagonal-hotel-saville-mystery">still unconfirmed Octagonal</a> which will be anyone's guess as to how it goes!
*Jonathan Chancellor, the Property Observer editor at large, has been closely following The Block since its 2003 Bondi Beach debut series.
Property reality television shows can inspire and create controversy and drama, but that doesn’t mean there aren’t some lessons to learn. Here’s our latest free eBook with tips, tricks and information we’ve gained from <a href="/images/stories/marketing/ebooks/PO-ebook-RealityTV.pdf?utm_source=Property+Observer+List&amp;utm_campaign=e7c94f84fa-16_September_2014&amp;utm_medium=email&amp;utm_term=0_a523fbfccb-e7c94f84fa-" target="_blank">property game shows</a> through the years. 
 
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jchancellor-FAypfDUnLy

Not enough bidding baby boomer buyers to boost B-grade location in The Block Glasshouse 2014 auction results

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Tasmanian brothers Simon and Shannon Vos took out the $100,000 prize at the auctions of The Block Glasshouse.
With a $1.9 million sale, the duo earned $335,000 over their adjusted reserve of $1.565 million.
All five of the apartments at The Block sold at auction, though they didn't approach the bullish results at the Albert Park warehouse in The Block Fans v Faves earlier this year.
Rookies Chris and Jenna, who had the largest floor space of any of the six apartments, came in second place with a $1.81 million price.
The full results:
<ol>
<li>Simon and Shannon, 2/125 High Street: $1.9 million ($335,000 over reserve)</li>
<li>Chris and Jenna, 2/121-127 High Street: $1.81 million ($310,000 over reserve)</li>
<li>Maxine and Karstan, 3/121-127 High Street: $1.71 million ($40,000 over reserve)</li>
<li>Michael and Carlene, 1/125 High Street: $1.39 million ($10,000 over reserve)</li>
<li>Deanne and Darren, 6/121 High Street: $1.38 million ($10,000 over reserve)</li>
</ol>
Yet again, it seemed that the auction order played a role in the final results. This time, the highest priced apartment went under the hammer second, Chris and Jenna's was auctioned first, and sales price dwindled from there.
Michael and Carlene chose to go last. Deanne and Darren, who had second choice, did went as late as they could, choosing to go to auction fourth.
Simon and Shannon nominated to go second, while Max and Karstan decided to go third. Chris and Jenna were stuck with first place after the other couples determined their order.
The contestants had no doubt hoped to repeat the formula established on The Block Fans v Faves, where the hammer prices escalated with each auction as buyer desperation took hold.
But in a lesser location, with lesser properties and fewer interested buyers, they instead saw the buyer pool dilute as each apartment sold.
The discounts received by the contestants after completing the sixth "secret" apartment did indeed impact the final result.
Maxine and Karstan had the biggest reserve price due to the size and aspect of their apartment, had an initial reserve of $1.7 million. Their winnings earned them a $1.67 million adjusted reserve.
After Deanne and Darren's final apartment winnings, their $1.6 million reserve was cut to $1,370,000.
Michael and Carlene's reserve was discounted by $20,000, giving them a final reserve of $1.38 million.
Simon and Shannon received a $10,000 discount on their $1,575,000 reserve, with a final reserve price of $1,565,000.
Chris and Jenna did not get placed in the top three at either stage of the challenge, and so missed out on a discount, and had a $1.5 million reserve.
The proceedings began with Chris and Jenna's auction overseen by Anton Wongtrakun of Dingle Partners, which saw three bidders initially compete for the windowless unit. After bidding seemed to snag at the $1.5 million reserve mark, a fourth bidder entered the race, restarting the momentum.
Two bidders battled it out from $1.5 million upwards: what appeared to be a young couple and the other a rather emotive buyer's agent, pushed the price to up to $1.81 million, with the apartment going to the client of the agent.
When Simon and Shannon's apartment went on the block, host Scott Cam announced that Block regular  Damien Cooley was a "very good auctioneer, this bloke". After just two bids, from Frank Valentic and another buyer's agent who bid at The Block Fans v Faves auctions, the home was up for $1.7 million.
The young couple who bid on Chris and Jenna's apartment popped up again, pushing the price up further, before a profusely sweating Valentic placed a $1.9 million bid, securing the apartment.
The subsequent auctions proceeded at a markedly slower pace.
Karl Gillon of Buxton kicked proceedings for Max and Karstan's apartment began proceedings with a number of vendor bids, pushing the price up to $1.68 million. The young couple appeared yet again, putting in a $1.69 million bid. Gillon worked overtime placing vendor bids, acting as the only competitor to the young couple. The apartment sold for $1.71 million to the young couple, resulting in a $40,000 profit for Max and Karstan.
Not quite the wedding gift the disappointed Max and Karstan were expecting. Nor were many other punters, with judge Shaynna Blaze predicting their apartment would <a href="/expert-insights/building/shaynna-blaze-picks-max-and-karstans-apartment-as-the-top-seller-in-the-block-glasshouse">sell for the highest price</a>.
A deflated Deanne and Darren were up next, with their apartment going under the hammer with Russell Cambridge of Biggin &amp; Scott. It seemed that Dee's provincial luxury stylings, which were feared would alienate some buyers, at least brought in some interest from bidders who had not appeared at the previous auctions.
However, things stagnated just after they passed their reserve, with a number of $10,000 bids put the price of their apartment at $1.38 million. The couple ended up with just a $10,000 profit after three months of work. Had they not received their reserve discount prizes, their apartment would have been passed in below reserve.
Michael and Carlene's apartment was auctioned last. The auction, said to have stretched out for an excruciating 45 minutes, saw Matt White of Ray White try to squeeze interest out of the rather small buyer base. Bidding opened at $1.2 million.
A few bidders who had not yet appeared at the previous apartments popped up, but it wasn't much use to Michael and Carlene. Things stalled below reserve at $1.36 million for some time.
Some whispers were exchanged among potential buyers at the $1.36 million mark while White and his fellow agents consulted with Michael and Carlene.
They agreed that the apartment should be passed in should it just reach reserve, as a reserve price sale would result in zero profits for Michael and Carlene.
White returned to let the couple know that a bidder was willing to put in a $1.39 million bid, which White would be forced to accept in accordance with Victorian laws. And so the bidder purchased at $1.39 million.
All in all, the disappointing Block Glasshouse results reflected the market's interest in a bizarre office conversion located on an inner city main street.
 
 
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Smashing win for Simon and Shannon in The Block Glasshouse auctions results

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SPOILER ALERT 
No winner reveal within - so mild spoiler alert from Property Observer - but Sunday night's The Block Glasshouse finale will nicely illustrate just how hit and miss property renovation success can be.
All five apartments of The Block Glasshouse were sold under the hammer earlier today at their Prahran onsite auction, Property Observer understands.
<a href="/expert-insights/building/smashing-win-for-simon-and-shannon-in-the-block-glasshouse-auctions-results">Brothers Simon and Shannon took out the $100,000 prize at the auctions of The Block Glasshouse.</a>
But viewers will see it was a very close shave exceeding the reserve for some of the contestant couples.
While there is no official confirmation ahead of the Sunday night broadcast, the five results bettered Melbourne's overall 73% auction success rate which was recorded this weekend amid the 820 auctions reported to the REIV. 
And there were terrific over-reserve results on High Street in the ninth series of the Channel 9 series. 
But I note one of the weakest sales finished just 6% up on its opening bid before the hammer came down.
"It is extremely good buying at this level," the auctioneer vainly suggested.
Another took over 30 minutes to secure the sale for little over reserve.
It appeared the order of sale again impacted the result as it did in past series where investors, rather than home buyers, were at the fore.
The auction saw Darren and Deanne, Michael and Carlene, Max and Karstan, Chris and Jenna and Simon and Shannon compete to get the highest price over their respective reserves.
The winning couple will receive $100,000 in addition to the huge profit they made over reserve.
Reserves were determined officially prior to the renovations, and the in the game that followed each couple also got the chance to discount these reserves when completing the building’s final “secret” apartment which may be retained by the show's production company.
Maxine and Karstan received a $30,000 cut to their reserve price, as did Deanne and Darren. Michael and Carlene’s reserve was discounted by $20,000, while Simon and Shannon received a $10,000 discount.
Chris and Jenna did not get placed in the top three at either stage of the challenge, and so missed out.
I thought the judge Darren Palmer gave a very good summation of the factors that were likely to influence the result - a balancing act of southerly versus internal versus northerly aspect, weighing up square meterage, views and amenity, <a href="/expert-insights/buying/darren-palmer-says-max-and-karstan-might-triumph-on-the-block-glasshouse">he noted in his LJ Hooker blog</a>.
But that was before the buyers, the agents, the buyers agents, and the auctioneers did their stuff. 
The much desired $2 million plus proved elusive.
*Jonathan Chancellor, the Property Observer editor at large, has been closely following The Block since its 2003 Bondi Beach debut series <a href="/expert-insights/buying/not-enough-bidding-baby-boomer-buyers-to-boost-b-grade-location-in-the-block-glasshouse-2014-auction-results">with f</a><a href="/expert-insights/buying/not-enough-bidding-baby-boomer-buyers-to-boost-b-grade-location-in-the-block-glasshouse-2014-auction-results">ull analysis of the results</a> to follow the Sunday night broadcast.
Property reality television shows can inspire and create controversy and drama, but that doesn’t mean there aren’t some lessons to learn. Here’s our latest free eBook with tips, tricks and information we’ve gained from <a href="/images/stories/marketing/ebooks/PO-ebook-RealityTV.pdf?utm_source=Property+Observer+List&amp;utm_campaign=e7c94f84fa-16_September_2014&amp;utm_medium=email&amp;utm_term=0_a523fbfccb-e7c94f84fa-" target="_blank">property game shows</a> through the years. 
 
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The Block 2014 auction results in not quite five gold stars at the Glasshouse Prahran: SPOILER ALERT 

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<div class="article-block">
All three design judges think Max and Karstan will probably take the prize on the compelling Channel 9 reality series, The Block Glasshouse
But despite everyone's design efforts, The Block Glasshouse auction order, if last season of The Block is anything to go by, will also play its part in this weekend's televised finale.
Especially if the buyers become more desperate to own their piece of the amazing building the more supply drops, the judge Darren Palmer says.
The auction reserves are going to be a balancing act of southerly versus internal versus northerly aspect, weighing up square meterage, views and amenity, he noted in his LJ Hooker blog.
"Deciding on the reserves is not a job I’d want to take on and I pity the poor valuer that has the task. 
"I’d guess that Max and Karstan will have the highest reserve, Chris and Jenna the lowest, Simon and Shannon and Michael and Carlene will be very similar with Simon and Shannon’s reserve higher due to floor space and the wildcard will be Darren and Dee."
He suggests these apartments could never be built with their amount of value with the quality of design and architecture on offer, as there’s far more value in them than the market would be willing to pay for, other than via the television show.
"In short whoever gets one is, in my opinion, getting a great deal and apparently a sound investment, though you should seek your own advice on what suits you and your investing agenda," he wrote ahead of the broadcast this Sunday night, at 6.30pm on Channel 9.
Palmer noted auction reserves are typically set based on considerations such as location, supply and demand, square meterage, aspect, amenity, finish, comparable sales in the area and last and less tangibly emotion – or desire. 
"Unfortunately for the contestants of the Block the reserve prices have been decided on the plans submitted to council, not the finished apartments, so what we have is a game of positives and negatives."
It made it fairly hard to ascertain who will come out on top, <a href="https://www.ljhooker.com.au/myljhooker/myljhooker-home/exclusive-darren-palmer-on-who-could-win-the-block-glasshouse?cid=myljhenOct14wallpaper&amp;utm_source=myljhooker&amp;utm_medium=email&amp;utm_campaign=Exclusive:%20Darren%20Palmer%20Reviews%20The%20Block%20Apartments,%20Top%20Agents%20Share%20Best%20Selling%20Tips,%20Styling%20to%20Sell%20Infographic%20and%20More&amp;kmi=news@propertyobserver.com.au" target="_blank">he wrote on the LJ Hooker blog</a>. 
Palmer gave his most enlightening insights into the pros and cons of each apartment, which Property Obsever has abridged.
</div>
<div class="article-block">
<h3>Apartment 1 - Michael and Carlene</h3>
Southerly aspect
Second smallest apartment at 236.8 sqm internal living space.
3 Bedrooms – master bedroom with walk in robe, 2 bathrooms, powder room/laundry, kitchen with butlers pantry/scullery, open plan lounge/dining, study, upstairs internal terrace w/ outdoor shower + large indoor outdoor terrace with lounge/dining/bbq, 2 car undercover parking, on site lockable storage.
 
<table border="0" cellspacing="1" cellpadding="1"><tbody><tr>
<td><img src="https://s3-ap-southeast-2.amazonaws.com/myljhooker/v2%2Fimages%2Farticles%2FHome%20ideas%20article%20images%2FDarren%20Palmer%2FThe-Block-Glasshouse%2Fmichael-carlene-kitchen-2.jpg" alt=""></td>
</tr></tbody></table>
 
The apartment is south facing which overlooks the street with trams passing by regularly however the noise is kept at bay by triple glazing of all external windows.
Michael and Carlene have created a property that is largely broad and family-friendly but also could appeal to young professionals, singles and empty nesters.
There is only one glaring issue with Michael and Carlene’s apartment - the main bathroom and the stairs to a shower. 
Michael and Carlene have excelled in every other part of the home.
The terrace has the only space that is truly all weather.
So depending on the reserve and the auction order Michael and Carlene have a good chance of casting the widest net of buyers as long as they’re not bothered by the main bathroom. 
</div>
<div class="article-block">
<h3>Apartment 2 - Chris and Jenna</h3>
East facing internal apartment with no outlook but rooftop area with city views.
The largest apartment on the block at 277 sqm internal living space.
3 Bedrooms – master bedroom with walk in robe, 2 bathrooms, powder room/laundry, kitchen with butlers pantry/scullery + bar, open plan lounge/dining with gas fireplace, study, grand 3 level staircase leading to a rooftop terrace w/ city views + the largest indoor outdoor terrace on the block featuring dining &amp; bbq area, 2 car undercover parking, on site lockable storage.
There were several times that they came short of expectation or came up short all together, though when it comes to the really important things to get right in an apartment they delivered in spades. The main bathroom is a master class on how to do everything right. 
This kitchen nailed every single detail in terms of finishes, inclusions, space, storage, lighting, inclusions delivering a room that had everything and the kitchen sink – coated in an appealing copper coloured coating. 
 
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The largest apartment will most probably also have one of the lowest reserves as it has no outlook, hemmed in on all sides by the adjoining properties. There is however plenty of natural light so it may not be detrimental to market desire for this apartment.
 
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<h3>Apartment 3 - Max and Karstan</h3>
Northerly Aspect with City Views
3rd largest apartment at 237 sqm internal living space
3 Bedrooms – master bedroom with walk in robe, 2 bathrooms, powder room/laundry, kitchen with butlers pantry/scullery, open plan lounge/dining, study, one of the smallest outdoor terraces, 2 car undercover parking, on site lockable storage. Secret room on title.
 
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This apartment has broad appeal. 
There were comments made throughout the series about some of the glossy choices feeling cold or soulless but seeing the complete apartment with the revisions made during the 24 hour redo challenge as well as the major impact the terrace space has on softening the whole downstairs level, this apartment is now as friendly as it is clean and orderly – which adds up to a very saleable package.
When you look at the Block apartments as an investment package they stack up very well. 
The depreciation schedules are impressive, they come fully furnished and ready to rent as soon as you settle with all of that value covered in the sale price, which means your mortgage pays for the furniture – so if you have the deposit and the means to service the loan they’re well worth running past your financial advisors to see how they stack up for you.
Max and Karstan have used good quality inclusions, there is art in every space and for my money, and they have the best schedule of lighting and lighting choices in the whole Block. 
I’ve wagered that Max and Karstan may come up trumps on auction day, though their reserve will definitely be a factor in their success.
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<h3>Apartment 4 - Simon and Shannon</h3>
Southerly Aspect
Second largest apartment 249 sqm internal living space
3 Bedrooms – master bedroom with walk in robe and ensuite with custom wooden bath + separate master bathroom/second bedroom ensuite, powder room/laundry, kitchen with butlers pantry/scullery, open plan lounge/dining with sculptural staircase, study, large outdoor terrace with dining/bbq, 2 car undercover parking, on site lockable storage.
This apartment is just plain cool. 
The brothers have folded the fabric of the apartment to become something more architecturally interesting in terms of the internal space, creating interest in the stairwell by framing the skylight with faceted gyprock, raked ceilings on the top floor, creative solutions to bulkheads and the most sculpturally interesting staircase on the Block.
 
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Simon and Shannon also have my favourite kitchen on the Block, creating something that is new and cool without trying to be. There’s an effortless swag in this apartment that will appeal to the young and young at heart.
Not everyone is looking for a super hip super cool apartment, so the family and older market may not be as interested in Shannon and Simon’s finished result but I’d wager that the buyers that desire the apartment desire it a great deal which could create a bidding war.
 
<h3>Apartment 5 - Darren and Dee</h3>
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Northerly Aspect
Smallest apartment on the Block at 186.7 sqm of internal living space.
3 Bedrooms – master bedroom with walk in robe, 2 bathrooms, powder room/laundry with drying cupboard, marble topped kitchen with butlers pantry/scullery, open plan lounge/dining, study, upstairs balcony with city views + outdoor terrace with lounge/bbq, 2 car undercover parking, on site lockable storage.
 
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This is honestly my favourite apartment in terms of aesthetic.
The style of Darren and Dee’s apartment is refined, finessed and luxurious in a very friendly way. The design alone will add a great deal of value to the apartment with hints of high end such as marble, the beautiful application of the EasyCraft Easy VJ paneling they’ve used sparingly and to huge effect throughout, the herringbone floors and the graceful and elegant staircase connecting the two floors.
The big draw card in Darren and Dee’s apartment is something that they created out of thin air, or a void more the point. The balcony from the bedroom over the outdoor terrace is pure genius. This single idea has added the opportunity to take in a city view from their master suite and views can add upward of $100,000 to a selling price.
With the smallest floor plan they may well fall toward the bottom of the pack in terms of their reserve, though balancing that out they are also one of two apartments with the most desirable northern aspect.
Earlier this week another The Block Glasshouse judge Shaynna Blaze <a href="/expert-insights/building/shaynna-blaze-picks-max-and-karstans-apartment-as-the-top-seller-in-the-block-glasshouse">also predicted Maxine and Karstan's apartment</a> will attract lots of bidders, perhaps putting it ahead of the competition at the auction.
Blaze told TV Week that the aspect and size of the apartment apartment at <a href="https://www.realestate.com.au/property-apartment-vic-prahran-117846863" target="_blank" style="line-height: 1.3em;">3/121-127 High Street Prahran </a>will appeal to buyers.
"I think there are going to be more people bidding for Max and Karstan's apartment due to the size of it, and it's north facing," she said.
Judge Neale Whitaker, from Vogue, says history has shown that come auction day it can go one of five ways! 
"It’s anyone’s competition.
"In the last series Steve and Chantelle won against all odds and we’ve seen that happen before. 
"On paper, Karstan and Max have the best apartment – best position and the largest space. 
"In theory they should win, but they will also have the highest reserve," although Neale was strongly favouring Michael and Carlene on the show's auction eve taping.
"And The Block has a history of championing the underdog," <a href="https://thecarousel.com/homes/block-will-take-title/" target="_blank">he told The Carousel website</a>. 
Max and Karstan are the bookie favourites, with Darren and Deanne second favourite.
 
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