THE production company behind Channel 9's hit, The Block, may have bitten off more than it can chew after paying $3.6 million for a row of rundown terraces in Richmond.As the property market cools, Watercress Productions might struggle to cover the cost of sales and renovations to the houses, which are in the shadow of the troubled Housing Ministry estate.
Watercress bought four Victorian and Edwardian terraces in a row after they passed in at auction in November for $2.85 million.
It also paid $198,000 stamp duty, taking the cost of each house to just under $950,000 before a porcelain tile or glass splashback had been put in place.
JPP Buyers Advocates' Catherine Cashmore said Watercress would be "very, very lucky to break even" on the deal on sales price alone.
"They are starting high and it's a very big ask," Ms Cashmore said.
"The houses are situated across the street from the entrance to a supermarket carpark and under the shadow of Housing Ministry flats, which is a price-killer as far as real estate in Richmond goes."
The Block executive producer Julian Cress said the attention to detail paid to the properties made them stand-out buys and tipped high demand for them.
"The finishes, the fixtures, the fittings will make them the best product that is available at the time in Richmond by a long way," he said.