A section in the Bay of Plenty town of Taneatua, purchased 10 months ago for $20, has resold for $6200.

The 506 sq m site generated great interest when listed on the TradeMe internet site late last month.

The auction quickly reached its reserve of $1500 - the section's 2004 rateable value - and 40 bids were registered before it closed last Friday.

The property, which resembles an overgrown paddock and is indistinguishable from land alongside, was eventually sold to a bidder from Waitakere City.

According to information from Quotable Value, the section was sold in September 1994 for $500 and next changed hands in June last year for $20.

The most recent sale represents a profit of 30,900 per cent for Paraparaumu owner Mark Ruddlesden, who originally bought it with the intention of relocating a home and spending some time there.

Mr Ruddlesden said he was somewhat surprised by the interest in the section and the eventual sale price. Although he paid $20 for the section, sight unseen, he also paid the former owner's $600 legal fees for the transaction.

"My original plan was a romantic one - to move a property on the section and spend time there."

He would have been happy to hold on to the section if the rates were not so high. At $700, they represented almost half the property's rateable value each year.

- NZPA