Sold for any price
THE third and final stage of the original Bale development site was knocked down at auction on Saturday for a jaw dropping figure of just $750,000 to local developer company Perception Properties.
The 5.5 acre slice of prime Port Douglas real estate, now known as Niramaya, has approval for 23 strata blocks similar in size to the house blocks in stages 1 and 2 that were selling for around $500,000 each only five or six years ago.
All the major infrastructure for the subdivision had already been put in including water, sewer, power, gas, telephone and satellite TV and the site has all the internal roads and even a central lake completed.
“The work already done in the ground is probably worth about $2million,” selling agent Tony Mcgrath said.
“The reality is in this market development sites are fruit out of season and developers are as rare as hen’s teeth.”
While the sale of the site did attract a number of potential buyers none were prepared to purchase the property for fear they may have been forced to develop the site to match the first two stages of the Bale resort and become part of the original body corporate.
“There are things that frighten certain purchasers,” Mr Mcgrath said, “There were probably six or seven experienced developers that looked at the property, the approvals and the contracts prior to auction. They declined to take it further.”
However, Mr Mcgrath said that in fact the new owner did have substantial rights to do many things that the body corporate of the first two stages had little control over.
“How that will end, I do not know,” Mr Mcgrath said, “but the new owner will have to make it work. If this was being sold today as a five acre block with existing zoning and its own access I would imagine it would sell for between $2million and $2.5million, however, it doesn’t have its own access and the services in place would cost too much to move.”
It is understood that the owners of the site, Bale Resorts Pty Ltd, had no plans to develop the third stage and were carrying substantial holding costs including around $80,000 annually in body corporate fees.
Going, going, gone: Bale Resort subdivision sold at the weekend