The Block has secured a historic Victorian government property in Sunbury, including the former Sunbury Lunatic Asylum, for $1m, a price that has prompted questions from community groups and MPs.
The 2.6 hectare (6.4 acre) site, first opened as an asylum in October 1879, was sold to Channel Nine for the show's next series. This is the cheapest purchase in the reality show's history, at about $38 per sq metre. Three of its buildings will reportedly be converted into five homes by contestants.
Local real estate agent calls price 'eyebrow-raising'
Trent Mason, from Leading Real Estate, said the show's filming in Sunbury, about 30km northwest of Melbourne's CBD, "will bring a lot of positivity and growth" to the area. However, he noted, "the price and how it's all been handled, well, that's the bit with a question mark over it."
Mason highlighted comparative sales in the area: a 2,020 sq metre property sold for about $890,000 in 2024, and a 2,880 sq metre property recently sold for $3m. He said the land would be valued much higher than the selling price, based on comparative sales, though he found it difficult to estimate the property's expected value due to its heritage listing and deterioration.
MPs and community demand answers
Legalise Cannabis MP David Ettershank, whose upper house region includes the property, described the deal as the "bargain of the year" for Nine. "At around $38 a sq metre, I suspect there are plenty of people in Melbourne's west wondering where they can sign up for the same deal," he said.
Alison Cunningham, a co-founder of Sunbury Asylum Alliance, said the community had hoped to turn the building into a cultural hub for arts, training, events and hospitality venues, similar to the Abbotsford Convent. She expressed shock at the price, saying, "What does this mean that they've only paid a million dollars? On a broader scale, is everyone's house overvalued?"
A Victorian government spokesperson said the property was sold at market value, with the price determined by independent valuers and certified by the state's valuer general. The spokesperson added, "These spectacular heritage buildings are part of Victoria's history, and this sale will mean they continue to play a part for years to come."
Concerns over cats and community proposals
The Animal Justice Party MP for Northern Victoria, Georgie Purcell, raised concerns about stray cats living on the site that could "come under serious threat when production crews start rolling in."
In September, local MP Josh Bull announced The Block was coming to the area, acknowledging potential concerns. He wrote on Facebook, "However, as it currently stands, these beautiful buildings are simply destined to deteriorate beyond repair – taking with them the important history and legacy they represent."
Ettershank urged the government to reveal how the $1m figure was reached, saying, "This is public land with enormous historical significance to Sunbury. The community shouldn't have to take the government's word for it that this was the best deal available."
Sale details and community response
The deal includes an intention from Nine Entertainment to deliver a separate community project at another part of the site. In 2018, the government bought the larger 33-hectare historic site from Victoria University for about $20m, promising it would be returned "to community use" as a "new village green, arts hub and bustling new neighbourhood."
Cunningham called on the government to sell the former men's asylum, adjacent to the land sold for The Block, to the community at the same price. "We are willing to buy it," she said. "Will they offer the community the opportunity to buy the other side for the same price The Block got it for?"
Data from Cotality suggests the median price of a block of land in the Hume LGA, which includes Sunbury, was $450,000, with the rate per sq metre at $1,145 and the median block size at 349 sq metre. Local median house prices are not directly comparable, as the three heritage buildings on the site need restoration before renovation can begin.
