Bidding on a Dunedin property formerly owned by convicted fraudster Michael Swann, failed to reach half of its government valuation during a public auction.
Ferntree Lodge was put on the market after a High Court decision ordering forfeiture of at least $2.5 million of seized goods belonging to Swann family trusts.
The Wakari property contains the original 1849 pioneer cottage, which stands beside the more recent mock-Tudor house built in 1902.
The seven-bedroomeded house has four living rooms, a study, library, two dining rooms, an impressive billiard room and four-car garaging.
Although the home has stained-glass windows, sculptured plaster ceilings, handsome fireplaces and a beautiful central staircase, it is in need of some repair.
Ferntree Lodge has a government valuation of $905,000 and the Dunedin City Council website lists the property's rateable value at $1.55 million.
There were about a dozen people at the Bayleys auction on Tuesday, but only a North Island phone bidder and a couple in attendance placed bids on the property.
Bidding started at $350,000 and reached only $450,000, which was below the Crown's reserve.
The property was passed in by the auctioneer, and negotiations are now taking place.
