The Block’s planned 2027 site at Jacksons Hill in Sunbury, where industry sources have indicated Nine’s agreed price was about $1.1m.
Questions are mounting over The Block’s Sunbury land deal after suggestions Nine has locked in a deal to acquire the more than 2ha site for a tiny $1.1m or $1.4m.
It comes amid growing community concern over the plans for the site, with property industry pundits yesterday shocked at the tiny sum believed to have been paid — and Sunbury locals filling the social media accounts of the show and local MP Josh Bull with their fears.
Rumours had circulated this week indicating a deal for the former psychiatric hospital building known as Jacksons Hill was done for $1.4m, even surfacing on Melbourne radio yesterday.
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Their planned House 4 would span about 615sq m once a proposed pavilion and garage are added, while House 3 would total about 518sq m.
House 5 would sit on the biggest allotment at about 4312sq m, including outdoor space.
Industry sources have suggested the price was actually $1.1m, though neither the government nor Channel 9 have confirmed the figure.
At that price it is within the realms of what a single house can be sold for in the northern suburb, where the median home costs just $735,000.
Had the network sought to buy six homes in the suburb, as is intending to renovate into the heritage property next year if approvals are given, they would have paid about $4.41m — not including stamp duty costs.
The site comes with several significant issues including heritage protections, a community consultation process, water damage and past vermin ingression that could have impacted its value.
A source close to The Block yesterday said the Jacksons Hill transaction had not yet settled.
Heritage Victoria submissions on the proposed redevelopment remain open until October 6 next Tuesday.
Inside, the building shows signs of damaged paint.
Last month, Nine announced it had “acquired three grand heritage buildings from the Victorian Government” for The Block’s 2027 season.
Project documents show the broader Crown allotment covers 2.612ha, or 26,120sq m, while the proposed six private house lots total about 20,500sq m.
If the rumoured $1.4m applied to those six lots it would equate to about $54 a square metre, while the industry touted figure of $1.1m would put it at $42 and 10 cents.
Plans lodged with Heritage Victoria show how the three historic Jacksons Hill buildings are proposed to be divided into six residences for The Block’s 2027 season.
Property Investors Council of Australia chairman Ben Kingsley said the reported numbers demanded an explanation.
“Something about this simply doesn’t add up, and there is a lot more we need to understand about this sale,” Mr Kingsley said.
“If the figures being reported are accurate, I cannot understand why land of that potential value would be released on those terms.
“Was it offered at fair market value? Was the market properly tested? Was there a genuinely competitive process? And what independent valuation was relied upon?”
Property Investors Council of Australia chairman Ben Kingsley said the reported $1.1m price raised questions about the valuation and sale process.
MR Advocacy director Madeleine Roberts said the reported figure, if accurate, warranted greater scrutiny.
“If that figure is right, it is an absolute steal,” Ms Roberts said.
“The land alone would make you question how they arrived at that price, before you even consider the heritage buildings sitting on it.”
Ms Roberts said any obligations or wider benefits that affected the price should be disclosed.
“If taxpayers have effectively accepted a heavily discounted price because there are other benefits attached to the deal, then spell those benefits out,” she said.
MR Advocacy director Madeleine Roberts described the reported $1.1m price as an “absolute steal” and called for greater transparency around the deal.
But an industry insider cautioned against treating the figure as the full commercial picture.
The source said there was some truth to the number being circulated, but the precise terms were more complicated.
“People always love to be angry about something, don’t they? But there’s often much more going on behind the scenes than the headline figure suggests,” they said.
Six homes at Sunbury’s $735,000 median house price would cost about $4.41m before stamp duty, compared with the reported $1.1m Block deal.
An industry insider said the headline price did not reveal the full commercial picture, pointing to heritage and development obligations attached to the site.
The insider pointed to heritage, conservation, planning and development obligations attached to the site.
Heritage Victoria is considering plans to adapt buildings B26, B27 and B28 into six residences, with new pavilions, pools and undercover parking.
Heritage Victoria is considering plans for six homes at Jacksons Hill, including new pavilions, swimming pools and undercover parking.
Yesterday Sunbury MP Josh Bull had been promising a “big announcement” on Saturday via social media, but after locals began commenting about The Block site he later revealed it was for lifts to be installed at the local train station.
Nine and the Department of Transport and Planning have been asked to confirm the reported price, government valuation, sale process, settlement status and any material conditions attached to the transaction.
Additional reporting by Nathan Mawby
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