The 4 houses owed the Block production company who purchased them about $1m on average each (after entry/exit costs but before renovation costs). So in reality (not reality TV-land) the homes probably needed to sell for at least $1.2m to cover costs.
But the Block production company rigged the reserve prices so low to ensure the contestants could walk away with some cash and to finish the show on a positive tone and keep the excitement for the next series (which apparently they have purchased the homes for the next Block series already). Even with such artificially low reserves, and unprecedented coverage and promotion, 3 houses were passed-in and only one sold.
This proves just how badly the Block producers and the real estate experts who advise on the show have misread the market. House prices are falling quicker than they could keep up with.
I think it's now unlikely that the next series of the Block will ever be filmed. After all, who's going to volunteer 10 weeks of sweat & tears of their life to walk away with nothing?
Given the developing bear market trend in house prices, not even the Channel 9 hierarchy could rig it so the next Block contestants will make any money. The 'Block Shock' reality is now laid bare for all to see.
