The Whangaruru Motor Camp is on 59.7ha valued at $8.31 million in 2009. It contains four motel units, five cabins, 42 powered sites, 40 sites without power, a camp office and manager's house.
The Whangarei Coastal management Strategy Structure Plan has identified about 2.5ha of the campground could be appropriate for large residential sections. Whangarei District Council has indicated a subdivision without sewerage could contain 10-15 houses on 2000sq m sections, or with sewerage there could be 20 houses on 1000sq m plots.
Mr Blomfield said the site could continue operating as a campground, but he suspected it would be converted into a holiday home enclave.
"The value of coastal land has increased considerably since 2000 and while values have been realigned following the global financial crisis its intrinsic worth remains high," he said.
The Oakura campground can be bought alone, or as a combined unit with 62.6 neighbouring hectares of hill country valued at $1.047 million also up for mortgagee sale.
The hill country block has views east to the Poor Knights Islands and north to Cape Brett.