PHOTO: The Block NZ
The Block NZ Homes Sell for $5.88M—A Costly Venture for Producers
The four-bedroom homes on Beach Road in Browns Bay have sold for a total of $5.88 million—falling short of the $6.25 million that The Block NZ producers paid for the site in 2022. This results in an on-paper loss of $370,000, excluding additional expenses such as construction, fit-out, and marketing costs.
A Challenging Market for The Block NZ Properties
The Block NZ’s production company, Warner Bros International Television Production Aotearoa NZ, purchased the site at 850 Beach Road in April 2022. The purchase included the removal of the existing house and the completion of four townhouses to the shell stage, setting the stage for contestants to undertake interior design and fit-out work.
Despite these efforts, the sale prices reflected the current market conditions, with The Block NZ producer Mike Molloy telling OneRoof that the team anticipated the challenges ahead. “We knew what it would be and went in [to the sale] knowing that,” Molloy stated. “We’re happy that they have sold, and I’m pleased to get them off my hands.”
The Show’s Cancellation and Its Impact on Sales
While The Block NZ had received permission to proceed with construction, an 11th season was never officially greenlit. The show’s parent company, Warner Bros Discovery, ultimately canceled it amid broader cost-cutting measures, including the closure of Three’s news division, Newshub.
As a result, the production team had to sell the homes without the benefits of television exposure, sponsorship deals, and the massive marketing push that typically accompanies the show. This left the townhouses competing against more than 30 similar four-bedroom properties within a 2km radius, according to real estate agents.
Agents say the buyers were a mix of younger and older families, and downsizers. Photo / Supplied
The Block NZ producers paid $6.25m for the site in Browns Bay, which included removing the existing house and completing the four townhouses to shell stage. Photo / Supplied
Market Performance and Buyer Interest
Although two of the four teams on The Block NZ 2022 managed to sell their homes at auction—one earning a $4000 profit and the other just $100—further auctions for the remaining townhouses were canceled when buyers’ pre-auction offers were accepted.
Ray White agents Therese Leslie and Wendy Browne facilitated steady sales through December and January, noting that the final prices were strong for the area. “$1.5 million for that sort of product is really good value,” Leslie told OneRoof.
She added that it was difficult to determine if the homes would have fetched higher prices in a televised auction, stating, “The people who watch TV and all that stuff, you can’t really quantify it. You never know—would The Block have done higher prices than that?”
Only two of the four teams on The Block 2022 sold their houses at auction, one making a $4000 profit and the other $100 before the show was axed by Warner Bros Discovery. Photo / Warner Bros Discovery
The four townhouses , which had slightly different floor plans, were competing with more than 30 similar townhouses in the area, agents said. Photo / Supplied
A Mix of Buyers Moving In
The new owners of the The Block NZ homes include a diverse mix of young families, two mothers with teenagers, and an older couple looking to downsize. “It’s nice to have families come to the neighborhood,” Leslie said.
While the homes ultimately sold at a loss for producers, the Browns Bay properties have nonetheless found new owners who saw value in The Block NZ brand, despite the absence of the usual fanfare surrounding the show’s auctions.
SOURCES: ONE ROOF