Charlotte and Josh's apartment on The Block "doesn't tick all the boxes"

When the apartment Charlotte and Josh made over on this season of The Block was passed in at auction this weekend, many wondered if it was another case of The Block curse.

It seems, however, that it was merely a case of market forces at play.

The apartment, passed in at $390,000, was sold after auction for $445,000, some $92,222 higher than the average apartment price Frank Valentic's syndicate of investors paid when they purchased the 18-apartment block.

Jarrod McCabe, buyers agent associate director of Wakelin Property Advisory, says the location of the one bedroom apartment "ticks many but not all the boxes".

"South Yarra is a wonderful suburb," says McCabe.

"Caroline Street is great as well in places, given its proximity The Domain and so on. However, the property is directly opposite a major school (Melbourne's Girls' Grammar) and there is likely to be a significant traffic issues at peak times."

McCabe explains that Wakelin Property Advisory chooses properties according to their location first, then the property type and its presentation.

The apartment's position within the block itself could also impact its potential for capital growth.

"The property itself sits within a catwalk, three storey block, in a top corner.

"Often, catwalk properties aren't a great investment as there can be a lot of pedestrian traffic past occupants' windows which can be a privacy and security issue, deterring buyers. However, in this instance, the property is at the top of the building and is not a through route to other apartments," says McCabe. The apartment block has been recently renovated, with new paint, and offers dedicated off-street parking, an inclusion McCabe says "is a mandatory requirement in our opinion for apartment investments".

McCabe also notes that Charlotte and Josh's renovation of the 47 square metre, one bedroom apartment meets a "reasonably high standard", and is "contemporary without being too avant garde". However, the apartment has not been fully renovated, with the front door and laundry both "needing attention".

While McCabe thinks the 85 Caroline Street block is one of the better investments that has appeared on The Block in Melbourne, it doesn't quite meet the investment advisory group's standard, with Wakelin seeking the "best 5% of properties in the market from the investment perspective".