It does seem high considering £125k is only just under the reported £130k spend on each episode of EastEnders, which run 7-8 minutes longer and clearly have much more money spent on them.
Neighbours is already clearly the budget soap - a small cast (which actually works to it’s advantage) and rarely leaving the sets and regular locations. It’s probably better to end it than compromise it even further with more budget cuts.
Doesn’t quite work like that though - the overheads means halving production doesn’t half the costs.