Property sells for $8.4m after fierce bidding

A rural Wairakei property has sold for $8.4 million after fierce bidding in a Rotorua auction room.

The sale follows a cracker month in Taupo for the property market with 66 residential properties selling in February - the highest sold in a month since May 2007. The 941ha block 35km north of Taupo was bought by neighbour Ged Donald, who outlasted three other bidders in the mortgagee auction this month.

Forest Park was believed to be the first licensed deer farm in New Zealand. Historically a deer unit, in recent years it had also been used for dairy grazing by Landcorp and local farmers.

Announced on the market at $7.6 million, it included two four-bedroom homes, workers' accommodation and infrastructure.

Dairy farmer Mr Donald said the purchase was a strategic move. He said he had always had some interest in acquiring the historic property and was unable to pass up the opportunity when it came on the market.

He said he was happy to have come out on top at the competitive auction. "Being the neighbouring property we didn't want to spend the next 20 years looking at it."

It would be converted for dairy farming and dairy support. The homes would be used by staff.

LJ Hooker Gisborne agent Warwick Searle, a rural specialist who marketed the property, said the price exceeded his expectations.

He said the property was highly attractive because of its size and the diversity of options.

"You don't get blocks this size come up very often in this district," he said. "We had more than 20 parties over the property."

He said the rural market around Taupo was quite active and his firm was receiving a high number of inquiries.

REINZ figures released yesterday indicated it's not just the rural market that's on the up in Taupo.

The figures showed 66 residential properties were sold in and around Taupo in February. That's almost double the 36 sold in January and is the highest monthly figure since May 2007.

The median sale price bucked the national trend to rise 4.8 per cent from January to $325,000 although this is still down on the $346,000 in February last year. Taupo also saw a big jump in section sales with 11 sold, the most in a month since September 2009.