Kiama Council has resolved to lower its asking price to cash in on the sale of the five residential lots at Glenbrook Drive which were passed in at last Saturday’s auction.

A crowd of onlookers and serious buyers assembled on site at 17-25 Glenbrook Drive but after bidding on each site, they were not sold.

The final bids ranged from $855,000 to $900,000 but fell short of Council’s guide price of $950,000.

Council held a confidential Extraordinary Meeting on Thursday evening to decide what to do next after the auctions fell short of the reserve prices.

Kiama Council issued a statement on Friday to say it will "revise its reserve prices" and CEO Jane Stroud has been delegated to negotiate with the interested parties for the five lots.

Council said there was “strong interest, with a well-attended crowd, multiple registered bidders, and competitive bidding” on Saturday and while the lots did not sell under the hammer, Mayor Cameron McDonald was confident of achieving a successful outcome.

Cr McDonald said the initial reserve price for each block was determined using pricing guidance from the appointed real estate agents and an independent valuer. 

These valuations were based on comparable sales within the Kiama Local Government Area. 

In accordance with the Local Government Act, Council is required to obtain the highest and best price for all land sales and to test the market.

“The reserve price for each block was determined using pricing guidance from both the appointed real estate agents and an independent valuer.

"However, the best way to determine value is to go to market, and now we have done this, and adjusted our prices accordingly.

“Our CEO Jane Stroud, in conjunction with our estate agent, will now negotiate with highest bidders and other interested parties.

"We’re confident in the appeal of this land and we’re working to achieve the best possible result for Council and our community.”

First National Coast & Country were engaged as the selling agents and sales representative Sam Lathbury said they had been in contact with several bidders this week to continue negotiations. 

“Overall it’s been pretty positive in terms we have lots of buyers but we haven’t quite met the price directive set and we’re working on that to get that closer together,” he said.

“Anywhere that you have things passed in there’s a bit of negativity attached to that but it’s not like we’re too far apart.

“We’re pretty confident that over the next two weeks that we will be able to put these all together.”

Council encourages interested parties to contact First National Coast & Country for further information and new bidders will of course be considered.

The Council-owned land was put up for sale after years of negotiations to cut through bureaucratic red tape to have a long-standing covenant removed by the NSW Government.

The covenant was placed on the land way back in 1991 because it was deemed too close to Bombo Quarry but many other houses have been built in the cul-de-sac, a three-minute drive west from the Kiama town centre.

The lot sizes range from 531sqm to 559.6sqm and they are within walking distance to Bombo Beach.