Two homes that could not sell at $3 million have had their guides cut to $2.6 million. The reason they stalled matters more to builders than anything the show ever taught about renovation.

For the first time in The Block’s history, homes from a previous season are still sitting on the market.

Two of them, at 4 and 5 Cedar Lane in Daylesford, have just had their price guides cut by more than $300,000 to land at $2.6 million. That is almost eight months after they were first listed. Both passed in at the auction finale at $3.1 million. Their original guides ran from $3 million to $3.3 million.

The contestants will not make a cent.

Strip away the television part and what is left is a story every builder selling into this market already recognises.

What actually happened

The homes did not fail because nobody wanted them.

Aaron Hill from Ray White Sunbury, who is selling Emma and Ben’s home, says he had a buyer on finale night willing to pay $2.8 million. In his words, the reserve was set too high.

So the deal that was there on the night did not happen. Eight months later the guide has been cut to a number below that original offer, and the home is still looking for a buyer.

A price set on hope instead of the market does not protect your margin. It costs you the sale and the eight months.

Why it matters now

The conditions have shifted underneath these listings.

Hill points to a rise in listings and a drop in investor activity since the April federal budget. Daylesford’s median house price tells the same story. It sat at $890,000 in January and fell 5.3 per cent over the year to $800,000 by the March quarter, on Domain figures.

At the same time, construction costs have gone up. So the gap between what these homes cost to build and what the market will now pay has widened from both ends.

Both agents on the street were quick to say there has never been a better time to buy. That is the sell side talking. The data underneath it is the part builders should read closely, because it is the same data shaping your own pricing right now.

THE GOOD BUILDER TAKE

These homes had everything a speculative build could ask for. A national television audience. Free marketing for twelve weeks. A prime lifestyle location. Finished product, styled and photographed.

None of it moved a price the market had already decided was too high.

That is the point worth sitting with. Marketing does not fix a pricing problem. Location does not fix a pricing problem. Only the price fixes a pricing problem, and the longer you hold the wrong one, the more it costs you in holding, in interest, and in the deals that quietly walk while you wait.

If you are building on spec, or setting a fixed price months out from completion, the question is simple. Are you pricing to your costs and your hopes, or to the market that will actually be sitting in front of you on settlement day?

The Block just paid for the answer in public.

This article is general information only and does not constitute financial, legal or business advice. Figures are accurate as at publication and reflect price guides, which are not sale prices. Last updated 18 June 2026.

Your Questions Answered:

Why didn’t The Block’s Daylesford homes sell?

Both homes were passed in at the October 2025 finale because their reserves were set above what the market would pay. The selling agent says a $2.8 million buyer was available on finale night, but the reserve was too high to meet it.

How much were the unsold Block homes reduced by?

The price guides on 4 and 5 Cedar Lane were cut by more than $300,000, from an original guide of $3 million to $3.3 million down to $2.6 million, almost eight months after listing.

What does this mean for builders building on spec?

It is a reminder that a price set on hope rather than current market conditions does not protect margin. It can cost the sale and add months of holding costs while the market keeps moving.

What is happening to Daylesford house prices?

Daylesford’s median house price fell 5.3 per cent over the year to $800,000 by the March 2026 quarter, down from $890,000 in January, alongside a rise in listings and fewer investors since the April federal budget.

Author: TGB Editorial