A lack of interested buyers for 15 residential sections at Wingatui shows demand for new real estate remains fragile, a developer says.
The Silver Springs development stage three sections near Mosgiel were offered at an open auction held at the Wingatui Racecourse yesterday.
About 70 potential buyers turned out for the auction but only two sections sold, for $135,000 and $190,000, Silver Springs director Dennis Brown said afterwards.
Another "two or three" sections remained under negotiation late yesterday, and it was possible they might be confirmed as sales today, he said.
However, Mr Brown said the lack of sales left him "surprised".
"I think overall it is a reality check.
"People have been saying all sorts of things [about] how buoyant the market is. It probably is better than it's been, but I think people are cautious.
"Perhaps it's just not as buoyant as everybody was led to believe."
His comments came after strong interest in developer Allan Dippie's HeathField subdivision saw 43 of 45 sections snapped up last month, with sales worth $5.58 million.
Mr Brown suspected his company's subdivision might be a victim of HeathField's success, as there remained "a limited market" in Mosgiel.
"We seriously think we've got a superior product over there at Silver Springs, and in the fullness of time it will be very successful. In fact, it already is."
Stages one and two - totalling 51 sections - were sold in 2007 and last year, and preparing the stage three sections to be built on was expected to be completed in September, Mr Brown said.
