Kiama Council’s ambition to turn the dormant land parcels at Glenbrook Drive into a financial windfall has sparked heated discussion across our community.

For decades, these five blocks sat in bureaucratic limbo, their development value clipped by a restrictive covenant on account of their proximity to Bombo Quarry.

Only this year, after persistent lobbying, and perhaps some fortunate timing of the Kiama by-election, was Council finally secure the lifting of that covenant, clearing the last legal barrier and placing these serviced lots on the open market for the first time in over 30 years.

Given the scarcity of available lots in Kiama and historically high house prices, expectations were high.

This had been coupled with an overall housing target from the NSW Government for the delivery of 900 homes by 2029 – an extremely ambitious 180 homes per year (we delivered 40 in 2022-23).

So, the sale of the Glenbrook Drives lots have a lot of interconnected implications for our community. So much so that Mayor Cameron McDonald got in front of the camera to spruik the sale of the lots and why the lifting of the covenant was an imperative – and quite an impressive on-camera performance we must say!

The lots went to auction on October 25 with each block listed individually.

Prominent local and regional agents forecasted intense interest, with preliminary estimates suggesting each lot could fetch figures well above $1 million.

The excitement was buoyed by both local demand and a resurging Illawarra property market with Cotality (formerly Corelogic) stating that house prices in the region have risen up 2.5% in the last quarter.

The main reason? Not enough homes and the same (or more) people chasing them.

The median house price in Kiama still sits at around $1.5 million, leaving prospective buyers a healthy sum to put towards a development application for their dream home.

Yet, despite this solid market, the Glenbrook Drive blocks failed to sell at auction.

Surprising is an understatement, and whilst the blocks should sell, it’s an interesting example of how easy things can go wrong (even if temporarily).

All in all, it looks like there is a $50,000 difference in price expectations, which makes us think that there is a deal to be done.

With everything we know, it looks like the failed sales may point to misjudgement, not the market shifting.

Council has been transparent that their reserve prices were the key sticking point - set ambitiously high relative to what buyers were willing to pay, even in a hot market.

Perhaps Council needed to be steadfast on the $950,000 number, hoping to extract every bit of value out of these assets to help with its financial pains?

Perhaps the buyers were concerned about getting their houses approved in a timely fashion and needed a buffer?

Perhaps something more?

The fallout was immediate: Council is now reconsidering its price expectations, with a move to lower reserve prices to “cash in” rather than let any perceived negativity about the lots set in.

Either way, The Bugle’s View is that "one in the hand is worth two in the bush".

Let’s get the sale done and families or couples into homes.

And let’s get money in the bank so that Council can start prioritising time and money to the things that matter to the wider community.