32 sections sold at blackboard auction
THIRTYTWO of the 39 sections at the Heathfield subdivision in Mosgiel were sold in a successful blackboard auction at the weekend, which again highlighted strong demand in the Dunedin residential market.
Auctioneer Ray Kean said most of the properties had been sold in the threehour auction, and considerable interest had also been expressed in the remaining six properties, which were going on to the market.
The blackboard auction system was ‘‘very userfriendly’’ and buyers and bidders had commented positively about this approach, Mr Kean said
This is believed to be the largest group of sections to be sold at once in Dunedin through the blackboard auction system.
Under this system, reserve prices are set, in this case many of them at $299,000, and, through written bids, prices advance initially in $5000 increments, and later by smaller amounts.
Allan Dippie, owner of Willowridge Developments Ltd, said the auction’s sales had amounted to $11.5 million, the average price was $354,000, and the lowest price $320,000.
The 11am auction, attended by more than 100 people, showed ‘‘very strong interest in the residential market in Dunedin’’.
He acknowledged prospective section or home buyers could face frustrations through other sales methods because properties could be sold before they had the chance to make an offer.
By contrast, a blackboard auction enabled prospective buyers to switch their interest to another similar section if a particular section they were bidding on reached a price level they were uncomfortable with, he said.