Victoria Sells Sunbury Asylum Site to Nine Entertainment for $1 Million

The Government of Victoria sold a 2.6-hectare site in Sunbury, featuring a former psychiatric hospital, to Nine Entertainment for $1 million. The purchase price, which averages approximately $38 per square metre, marks the lowest acquisition in the history of the reality show The Block. The production company intends to renovate three of the site's buildings into five residential homes and deliver a separate community project on another portion of the land.

Community groups and members of parliament have criticized the deal as being far below market value. MP David Ettershank and the Sunbury Asylum Alliance are demanding transparency regarding how the price was reached, with some suggesting the community should have been offered adjacent land at the same rate. In contrast, local MP Josh Bull defended the sale, stating the historic buildings were otherwise destined to deteriorate beyond repair.

A government spokesperson maintained that the price was certified by the state's valuer general and determined by independent valuers. While the government emphasized that the sale ensures the heritage buildings continue to play a part in the state's history, critics continue to question the valuation of the public land.