📍 Spotlight on Daylesford: What The Block Means for This Quiet Regional Gem

Dominique Oates
Aug 1
3 min read

Once known primarily as Victoria’s wellness capital, Daylesford is now making national headlines for another reason: it’s the 2025 location for The Block. But what does this mean for the town’s already tight real estate market? Is it a temporary media bump, or the start of something more permanent?

Let’s break it down.

🌿 A Town on the Edge of Transformation

Nestled in the Hepburn Shire about 90 minutes northwest of Melbourne, Daylesford has long been a go-to for weekenders, retirees, and tree-changers. Famous for its mineral springs, boutique spas, art galleries and slow-living ethos, it’s a regional haven with charm to spare.

But beneath the surface, Daylesford’s property market has been quietly cooling over the past 12 months. Median house values have hovered around $857,500, with growth dipping into slightly negative territory (–0.2% year-on-year). Inventory is tight, average time on market is over 100 days, and long-term rental yields sit at a modest 3.2%–3.3%.

🎬 Enter The Block – and a New Kind of Spotlight

In a rare move, The Block 2025 is building five brand-new, carbon-neutral homes on a 2,400sqm site in the upscale Middleton Field estate—just a short walk from the town centre. This is the show’s first major pivot from renovation to eco-focused new construction.

Why Daylesford?

It offers postcard-perfect visuals and a strong community.
It appeals to a growing audience that values lifestyle, sustainability, and design.
And crucially, it had planning approvals in place—something last year’s Phillip Island location struggled with.

Channel 9 has reportedly invested ~$10 million into the land and build, with an estimated $8 million flowing directly into the local economy during filming. That’s not just hype—it’s tangible stimulus.

💥 A Surge in Attention and Perceived Value

Even before the season has aired, Daylesford is already reaping the rewards of its national TV moment:

Online listing views are up, as both owner-occupiers and investors seek a piece of the “Block buzz.”
Local agents report increased foot traffic, with Melbourne-based buyers in particular showing renewed interest.
Properties within walking distance to the set site are drawing premium offers.
Businesses—from cafes to boutique hotels—are experiencing a notable uplift in forward bookings.

When the show airs later in 2025, the exposure will be unprecedented. Millions of Australians will see Daylesford not just as a weekend getaway—but as a place to live, invest, and build something extraordinary.

This kind of visibility often creates a halo effect. Suburbs that have hosted The Block in the past have seen 5–15% price increases in the months following the auctions. While Daylesford’s regional nature makes its trajectory unique, the town is now firmly on the national radar.

🏡 What’s Happening on the Ground?

Property listings in Daylesford are already getting more views than usual. Local agents are seeing an uptick in buyer interest—particularly from investors and owner-occupiers hoping to get in before the show airs.

Here’s what the market looks like right now:

Metric	Value
Median house price	~$857,500
12-month capital growth	–8.2%
Average time on market	~101 days
Long-term gross yield	~3.2%
Airbnb median annual revenue	~$34,600 (top 10% > $64k)
Airbnb average occupancy	~35%
Airbnb ADR	~$300 (some > $500)

The real opportunity? Short-term rentals. Daylesford has over 460 active Airbnb listings, many of which outperform long-term leases in both revenue and yield—especially if designed for premium, couple-style stays.

⚖️ Opportunities vs Risks

✅ Upside:

The Block effect could drive a short-term price uplift as national attention lands on Daylesford.
Strong lifestyle appeal and limited new supply make it an attractive buy for owner-occupiers or prestige investors.
Potential for strong Airbnb yields in a market with proven tourist demand.

❌ Challenges:

Limited affordability at the entry level—few homes under $600k.
Low capital growth over the past 12 months.
Short-stay income is highly seasonal and may require active management.
Rezoning proposals in Hepburn Shire could increase future supply—but also change the town’s character.

🧭 Should You Buy in Daylesford Now?

If you’re an investor looking for long-term growth or high-yield returns, Daylesford isn’t a "set and forget" strategy. But if you’re targeting a lifestyle property with premium short-term returns—or you’re a developer considering boutique, design-led builds—Daylesford offers real upside.

With The Block set to air later this year, now is the time to monitor listings, attend local auctions, and prepare to move before demand spikes.

Want tailored insights into regional markets like Daylesford, Hepburn Springs, or the Macedon Ranges?At IFS Mentor, we help clients find high-performing properties backed by data—not just media hype.

👉 Book a 1:1 Strategy Session with Peter Oates