Ballina Shire Council’s latest land release at Wollongbar has flopped, with all six residential lots passed in at auction after failing to meet their reserve price of $500,000.

The auction, held Wednesday night at the Lennox Head Cultural Centre, attracted interest from local agents and representatives of national project home builders — but none were willing to meet the council’s half-million-dollar asking price. 

Highest bids ranged between $420,000 and $440,000, with just one lot reaching $470,000 before being passed in.

Privately, agents were quick to criticise the pricing as unrealistic, saying Council’s expectations didn’t reflect current market conditions or recent comparable sales.

“You can buy a block in (neighbouring) Goonellabah for $350,000 or less,” said one attendee. “Given the rising building costs and the finance climate, why take the risk?”

Another agent said uncertainty around Council’s recent poor record in approving new homes within reasonable timeframes and its plan to build an “affordable” rental complex on adjoining blocks had also given buyers cause to pause.

“Originally, that land was flagged for more homes. Now there’s talk of affordable housing.  While it may work out well and not hit property values in the long run, it adds to doubt at a time when buyers are already cautious.

“And with Ballina council, there’s no knowing how long it may take to get your plans approved.”

In a media release ahead of the sale, Council extolled the virtues of the lots on Avalon Avenue as a rare opportunity for families and investors to build in a “well-connected, fast-growing community.”

“These blocks offer the ideal foundation to build a home in a location that ticks all the boxes – lifestyle, location and community,” Paul Tsikleas, Council’s Manager of Commercial Services said.

Mayor Sharon Cadwallader also promoted the area as one of the region’s most liveable, highlighting proximity to schools, TAFE, shops, sporting fields and the Ballina Byron Gateway Airport.

But agents say that while previous land releases in Wollongbar have drawn strong prices, market dynamics have shifted and Council needs to adjust.

“Buyers are doing the maths, and right now, half a million for a block there just doesn’t stack up.”

Wednesday night’s result was in stark contrast to the Council’s last auction effort in May, where industrial land at the Airport Industrial Estate went under the hammer.

The sale generated $17.42 million, with eager bidding seeing all the lots snapped up on the night.

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