Fewer than half sections sold

Bas Smith
Bas Smith
Despite reserve prices set at about half of valuation, only nine of the 20 Jack's Point sections offered sold at yesterday's silent auction held by real estate agency Ray White.

The nine sections sold for between $165,000 and $206,000.

Only the most expensive sold above its reserve.

Ray White Queenstown principal-director Bas Smith said the company was "really stoked" with how the silent auction went.

"Just like any other auction, there's post-auction work on stuff that didn't sell on the day - we'll clean up the majority of it next week."

The sites were bought from the original Jack's Point developer in 2006 by Lifestyles New Zealand, a subsidiary of Allied Farmers.

According to Ray White, many of the sections' reserve prices were set below 50% of their quotable values.

Mr Smith previously said the auction occurred because of a "special set of circumstances" and was unlikely to be repeated.

"It was a bit of a novelty, and I guess the special set of circumstances was Allied doing their best to reduce the debt they're got out here, and they've totally achieved that through this process," he said yesterday.

"We wanted to focus the market on these sites, so instead of getting the odd buyer out to a fixed-price site, we wanted to put the market in competition for these sites.

"We did it slightly different to a normal auction in that we gave people a reserve price, and took the bottom price that they were prepared to take on any of their sites and set that as a reserve ..."

Bidders were encouraged to place bids before the auction, which qualified them for a $5000 rebate if they won.



Add a Comment

Our journalists are your neighbours

We are the South's eyes and ears in crucial council meetings, at court hearings, on the sidelines of sporting events and on the frontline of breaking news.

As our region faces uncharted waters in the wake of a global pandemic, Otago Daily Times continues to bring you local stories that matter.

We employ local journalists and photographers to tell your stories, as other outlets cut local coverage in favour of stories told out of Auckland, Wellington and Christchurch.

You can help us continue to bring you local news you can trust by becoming a supporter.

Become a Supporter