Just nine out of 20 “bargain basement” Jacks Point sections auctioned at Queenstown were sold over the weekend.
They were some of the assets inherited by Allied Farmers from Hanover Finance.
The reserve prices of $165,000 to $205,000 compares with some of the earlier prices being sought of $450,000 to $500,000 about four years ago.
The sections were developed by Darby Partners in 2005 and were offered by Allied subsidiary Lifestyles of New Zealand.
Ray White Queenstown owner, Bas Smith, remained enthusiastic about the auction result and claimed the remainder would be sold soon.
But the lukewarm response raises doubts about whether investor confidence has returned and also raises doubts about the strategy for selling other sections at Jacks Point, some of them owned by Allied.
The 20 sections on offer are adjacent to 20 more in the Neighbourhood 4 precinct that would continue to be marketed at $220,000 to $270,000, according to Mr Smith.
A successful sale of the 20 at auction would have been sufficient to cover the debt on the other 20 on the market.
Mr Smith told NBR NZ Property Investor a couple of weeks ago that local valuers had indicated they would treat the auction as a “one-off,” thereby reducing the effect on subsequent sales. It is unclear if this “one-off” valuation treatment will now be seriously questioned
Chris Hutching for NBR NZ Property Investor
Tue, 22 Mar 2011
Tue, 22 Mar 2011
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Hanover legacy at Jacks Point proves slow to sell
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