The Block 2015: will apartments in South Yarra's former Hotel Saville sell?

Producers of Channel Nine’s renovation series The Block have cranked up the pressure on contestants, who face one of the show’s biggest challenges: transform a notorious Melbourne eyesore into a luxury apartment building.

The townhouses from the previous series, set in ritzy South Yarra in April, netted teams a TV world record prize of $3,165,000.

The latest instalment, which starts on Channel Nine at 7pm on Sunday, is again set in South Yarra, but the address is at odds with last season’s location on genteel Darling Street, one of the suburb’s most exclusive boulevards.

Each of the five teams will create a 225 square metre, three bedroom luxury apartment with city views within the seedy former Hotel Saville, the iconic, octagonal building that looms large – and ugly – on the corner of busy Commercial and Punt roads.

It plays a part in one of Victoria’s most notorious crime webs: a woman was found bloodied and naked in one of the hotel’s rooms in 2002. A self-proclaimed vampire gigolo accused of her rape and mutilation was gunned down, in front of his pregnant girlfriend, while standing trial.

The Block‘s producers paid $6.25 million in October last year for the tawdry eight-level tower at 5 Commercial Road, near The Alfred hospital and parkland.

Executive producer Justin Sturzaker said when buying real estate for the show, they look for distinctive buildings, in sought-after locations and with unique design.

“The current site in Commercial Road, South Yarra ticks all those boxes,” he said.

“When completed, this once ugly duckling will be a striking apartment complex that its residents and neighbours will all be enormously proud of. We think Australia’s going to love what our contestants are planning. As for Melbourne, it can’t come soon enough for this ugly duckling.”

Buyers advocate and last year’s judge Greville Pabst said the position, at a major intersection, could test some buyers.

“But The Block architect always finds great solutions to unusual sites,” he said.

“I am sure these compromises will be overcome by some amazing designs and clever use of the building.

“The apartments may even afford a spectacular view given the building’s location. The biggest advantage is the vista of the north and the west providing views of the CBD, across Fawkner Park and across Albert Park and St Kilda. 

“We always see young professionals seeking a fun and social lifestyle in these inner suburb areas, and in this season, with a lift, we will see the empty-nester market have more interest.”

But buyers advocate Karin Mackay, who has bid for clients at several Block auctions, described the Saville as the most challenging location yet.

Ms Mackay said it lacked ready access the beaches, cafes and shopping of previous top-shelf addresses tackled by contestants, including South Melbourne’s Park Street and O’Grady Street in Albert Park.

Melbourne Deluxe Property boss Paul Pfeiffer​, who bid on behalf of an anonymous Australian cricketer at Darling Street, also said downsizers were the potential market for the motel makeover.

“​The location is not as prestige as Darling Street, South Yarra…although it is very close to beautiful Fawkner Park and within easy reach of the city,” Mr Pfeiffer said.

The Block judge and interior designer Shaynna Blaze said this season’s project was the toughest yet.

“(It is) without a doubt the most difficult Block I have ever seen or been a part of,” Blaze said.

The tower’s irregular configuration will test the stress levels and renovation skills of the inexperienced teams.

“There are so many challenges with the shape of the building and its access as well from the outside of the building,” Blaze said.

“The contestants have to deal with not only the wedge shape of the rooms but each room runs off a central point that gives a different challenge again.”