Land bargains as government looks to recoup funds after failed dam project

EIGHT rural properties in Queensland's Mary Valley purchased for the aborted Traveston Dam project go under the hammer today.

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EIGHT rural properties in Queensland's Mary Valley, originally purchased by the former Bligh government for the aborted Traveston Dam project, go under the hammer today.

The auction of the properties covering 31ha is part of a wider sale process with the Newman government trying to recoup the $450 million forked out to purchase property surrounding the failed dam project.

Local agents said it was likely that the properties would be severely knocked down from their original valuation.

Discounts as deep as 30 per cent off the original purchase price are expected.

"The valuations on the properties have dropped substantially," one local agent said.

"There's lots of buyers around, but it just isn't a strong market at the moment and when those properties were bought the market was doing a lot better."

However, Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney has opted for the properties to be sold through the Helmsman system.

"We expect these properties will generate a high level of interest from buyers in Queensland and from interstate," Mr Seeney said ahead of the auction.

Under the Helmsman system, all properties are put on the market at the same time and bids are recorded on a screen, enabling bidders to view progress for each property at all times. Bids are recorded with the buyer's number on a large board, which allows bidders to see whether their bid still stands or has been out-bid.

The properties will be auctioned by Ray White.

Ray White Commercial chief executive Mark Williams said all of the properties had houses and were being offered as vacant possession.

"We have had more than 1800 visitors to our dedicated website for these properties and the number of bidders who have already registered is encouraging," he said yesterday.

The Bligh government bought 472 properties in the Mary Valley to make way for the dam project that was scrapped in 2009.

The eight properties auctioned today range from 1ha to 12.77ha. They are located in the Federal, Tuchekoi and Kandanga township areas.

Earlier this year, a 160ha property in the Mary Valley with a house sold for about $1.2m through the Professionals' Lex Townsend.

That property was part of a parcel that was released to the market separately to the tranche of properties to be auctioned this weekend.

PRDNationwide Gympie also has been involved in the marketing campaign.