Ballina Shire Council has voted to hit pause on the release of new housing blocks at Wollongbar after the failure of its latest auction.

The August 6 sale of six medium-density lots on Avalon Avenue drew ten registered bidders, but all lots were passed in after bids failed to meet the reserve.

The blocks are now being offered by private treaty, with asking prices between $535,000 and $565,000.

In a report to council’s Commercial Services Committee this week, staff conceded the result was “disappointing” — and, in a rare display of self-awareness, acknowledged that delays in council’s own planning approvals were a contributing factor.

Other reasons cited included a shortage of rental accommodation for those waiting to build, difficulties in securing finance, and escalating construction costs.

However, the report made no mention of concerns raised by some previous buyers in the estate, who only learned after purchase that council planned to develop a housing project on adjoining land. The issue was not raised by councillors during the meeting.

The report also noted that land prices in the Wollongbar area have softened since peaking at $600,000 after COVID.

Comparable lots are now being advertised between $400,000 and $500,000.

Council’s Commercial Services Manager Paul Tsikleas told the meeting comparable lots are now being advertised between $400,000 and $500,000.

Mr Tsikleas said the current market was “difficult” but argued council’s lots offered more value than competing land because they were level, north-facing, and zoned for medium-density development.

“There’s a number of blocks elsewhere in Wollongbar coming back onto the market because people can’t afford to build or finance has fallen through,” he said.

“By comparison, our blocks can take duplexes, which adds value.

“With spring coming, we hope the market improves,” Mr Tsikleas said.

“Spring is traditionally a better time for selling property, whether it’s houses or land.

“There’s less and less houses on the market now because house and land packages have become too expensive.

“But as the supply of existing dwellings has dropped, people are forced back into buying land and building.

“So that’s, that’s probably a phase where we’re entering into the market now,” Mr Tsikleas said.

Read the background to Wollongbar’s shifting land prices here: Half a million for a block at Wollongbar? Tell ’em they’re dreaming