A VOID in Armidale's residential layout, the Martin St subdivision, which the Commonwealth Government evacuated nine years ago due to soil contamination, yesterday sold at auction for $2.17 million.
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An opportunistic out-of-town investor saw past the subdivision's blemished history and outbid a handful of like-minded entrepreneurs for the block of houses, belonging to the Commonwealth Government.
Wishing to remain anonymous, the purchaser must now wait the duration of the settlement period before the 31 vacant single and attached dwellings and 15 land parcels can be on-sold.
Bidding started at $1.2 million and three parties, including a local bidder, expressed an intense interest in the subdivision.
The attraction for many investors was that the subdivision presented the ideal opportunity to individually sell the houses and provide finance to those homebuyers who can't gain bank finance.
Selling agent LJ Hooker principle Derry Crisp said a large hole in Armidale's residential map was well on track to being mended.
"It is a positive for Armidale," Mr Crisp said.
"The subdivision comprises quality homes and once the dust settles it is likely the houses would be on-sold and land packages placed on the
market."
The subdivision was the centre of a controversial and prolonged dispute between homeowners and the former Armidale City Council when it was discovered the site was contaminated with copper chrome arsenate (CCA).
Before the land was developed CCA was used on the site to treat power poles against insects and fungus.
In January 1993 residents of the subdivision were evacuated from their homes, as preparation for remediation work started.
The government formulated a $4 million compensation package, to which the council added $450,000, and 25 families were bought out.
Since this time, the street has remained vacant and many of the dwellings vandalised.
Mr Crisp said he was sure astute buyers would be quick to act on the properties, as there were shortages of residential houses on the market and rental properties.
