Goulburn Mulwaree Council’s approved subdivision for Hovell Street was sold last week for almost $4.5 million.
In May, the council chose to sell the land at auction rather than undertaking the development in-house after an approval for a 29-lot residential subdivision of 1000 square metre blocks was achieved for the site.
Mayor Bob Kirk said he was pleasantly surprised by the Hovell Street sale, which achieved a price well above the reserve. It is believed the land was valued at $2.1 million.
He said the 1000 square-metre blocks and 20-metre wide internal roads were designed to set an aesthetic example for other subdivisions in the area.
“The sale highlights just how strong the demand is for land in our region at the moment and in our opinion vindicates the council’s decision to take the land to auction rather than taking the risk as the lead developer,” he said.
Councillors discussed in May whether Goulburn-Mulwaree should develop the subdivision itself or opt for an outside operation to do so. Concern about it carrying extra financial risk and not getting the return it required sealed the decision to put it out via auction. The decision was made also to ensure there was no financial burden on the council if blocks did not sell.
However, the property was sold last week by LJ Hooker to Sydney developers which Mayor Kirk said illustrated the confidence there was in the Goulburn market.
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It is understood there was wide interest in the auction for the land which is perched atop a South Goulburn hill, from both Sydney and Canberra developers. This was attributed to the high demand yet limited supply of land near Goulburn’s CBD.
Council’s former depot in Sloane Street was not sold at the same online auction and was passed in at $525,000. It is believed the 11-hectare block sold later. Council decided to sell the land earlier this year disclosing onsite contamination, including former effluent from the nearby saleyard, asbestos from fibrous cement pipes and pesticide use.
Mayor Kirk said proceeds from the subdivision sale would go to the redevelopment of the Goulburn Aquatic and Leisure Centre.
“Being able to achieve a price of just under $4.5 million is very positive for our bottom line,” he said.
The aquatic centre, which is due for completion in February, will cost almost $30 million.
It includes a new eight-lane indoor pool and leisure pool, hydrotherapy facility, change rooms, cafe, large gym, expanded car park and repair of expansion joints in the existing 50-metre outdoor pool. It is the largest upgrade of the aquatic complex since it was built in the early 1960s.
Locals and visitors can check on the progress of the aquatic complex through a window that looks on to construction on the Deccan Street side.
Original Article published by Sally Hopman on About Regional.