This year's Block contestants will struggle to see a profit - and some may even end up making a loss.
As Auckland's property market continues to slow, data analysis suggests the teams are unlikely to sell their renovated properties above current market value.
The seventh season of The Block NZ, which is airing on Three, has the teams working on properties in the west Auckland suburb of Hobsonville Point.
The combined auction profits for the 2017 season of The Block NZ, which took place in Northcote Pt, plunged more than 93 percent on the previous year, where contestants working on homes in the inner-city suburb of Meadowbank reaped close to $1 million in profits.
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Profits on the show have largely mirrored the gains in the market, with profits starting to rise rapidly at the start of the property boom in 2014 and reaching a peak in 2016 just before measures intended to cool the market took effect.
The drop in last year's profits coincided with the beginning of a slowdown in Auckland's housing market. The winning house for season six of The Block achieved just $31,000 above the reserve, while the average auction profit was $16,250.
Property Institute of New Zealand chief executive Ashley church said that if market trends continue, then profits for this year's homes would be smaller still.
"The days of making 'big money' from shows such as The Block are over," he said.
"The potential for turning a profit on this year's show is extremely limited, not because the format is stale - it's because of where we are in the property cycle.
"Right now we're in the 'flat' part of the cycle, and we'll be here for another two to three years before the market starts to pick up again."
Property values in Hobsonville Point have grown little over the past 12 months. The median house value for the suburb in April 2018 was $977,250, a 1.1 percent change on the three months to March 2018, and just 1.2 percent up on the previous 12 months.
"Any show which is predicated on the expectation of making a gain over the expected market value is setting it's contestants up to fail," Mr Church said.
"This is particularly true with The Block, where those taking part can only pocket what they make over assessed market value - at a time when no one is likely to pay over that value.
"If the show is still around in 2021/22 you can expect to see contestants start making decent gains again."
Also working against the contestants is the fact that current buyers can afford to be more discerning, and are unlikely to pay big money for homes that lack a professional finish.
