Packed room and plenty of bargains at Kempsey Shire Council's forced land auction

On offer on Tuesday November 29, were 18 of the original 27 properties listed for forced sale.

It was the first time in 10 years that Kempsey Shire Council has committed to an auction of this kind.

It described the sale as an "option of last resort" after attempts to contact owners or to reach an agreement, failed.

Present were representatives of council, including General Manager Craig Milburn and Director Corporate and Commercial Stephen Mitchell, and CEO of Recoupa Richard McLean, who worked with the families throughout the debt collection process.

The auction was held at Kempsey Macleay RSL Club with agents Kempsey Stock and Land opening registration at 10am.

A partition was quickly opened to double the size of the room and more seats were found as people piled in.

Property owners with overdue rates were able to pay their outstanding fees up until the auction.

At 10.17am, auctioneer Ian McGoldrick announced the removal of Lot 4, Point Plomer Road, after its outstanding rates were paid.

Interested bidders were audibly disappointed.

Within minutes, lots 1 and 2 Toose Road, Bellbrook, were also withdrawn.

Bidders were then reminded that they would not be responsible for the outstanding rates, and as Kempsey Shire Council was the seller, there would be no GST.

First to go under the hammer was 1 Entrance Street, South West Rocks.

The residential home on a 458 square metre block sold for $420,000, the largest sale of the day.

Crescent Head couple Belle and Zac had hoped this property would be their first home, but pulled out of the bid at $410,000.

"It was sad for us because we got so close," said Belle. "It's a good location to get into the market".

The property at South West Rocks was the only lot with a residential home. All other listings that went to auction were vacant residential, commercial or rural blocks within the postcode 2440.

The cheapest sales of the day were a rural 2390sqm block in Willi Willi, which sold for just $700. And several old road adjustments in Bellbrook, which sold for $130.

The energy in the room was at its highest when bidding for the vacant residential block at 43 Albert Street, South Kempsey, opened with $1000. The property was sold for $39,500.

The only other vacant residential block with building entitlement was also in South Kempsey. The 827sqm block on Middleton Street sold for $72,000.

Ben Tyson, licensee of Kempsey Stock and Land, said the auction was a "lot tidy up" with the majority of the listings being small pockets of land seemingly missed in a transaction from previous years.

The smallest lot was a mere 70sqm road adjustment in Seven Oakes, which sold for $1800.

A piece of land described by Mr McGoldrick as "half a driveway" in the centre of Kempsey on Forth Street, sold for $4000. The vacant commercial block is 55sqm and sits next to Carpet Court.

Many of the lots listed were described as land-locked, flood-prone and without building entitlement.

"A lot of the properties were small parcels of land which people don't even know exist," said Stephen Mitchell.

Three listings were "passed in". They included a 66sqm vacant residential block on Bisset Street, East Kempsey, a 252sqm vacant rural block in Nulla Nulla Creek and a 20sqm vacant rural block in Gladstone.

Mr Mitchell said having only a handful of properties passed in was a good result for council.

"The ones that got passed in are little bits of land that aren't easily dealt with, but if there is an opportunity to go to private treaty then that's what we'll do," said Cr Mitchell.

Mr Mitchell said that being able to "clean up" lots with outstanding rates is "great for our community and ratepayers".

"It's been a long process and a lot of work has gone into this. We've cleaned these ones up and now hopefully we can stay on top of it".

He says the November 29 auction isn't a process councils like to do regularly.

Recoupa CEO Richard McLean believes the auction had a good outcome for three different stakeholder groups.

"It was really good value for the properties, which means the people on title got good value from the sale of the property," he said.

"It was good value for council to get the rates cleaned up, which gives a fair outcome to the rest of the ratepayers who pay on time.

"And it's good for the community to have these bits of land and derelict houses owned by somebody who will care for them, and not have vacant bits of property lying around."

Mr McLean praised council for the organisation, professionalism and helpfulness in getting some properties off the auction list right up until the first bid.

Following is the full list of auction results.

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