
Located near a roundabout at the end of Queens Drive, the 372sq m section has been owned by Invercargill City Council since 1970.
It was originally acquired for roading purposes but is now deemed both surplus to requirements and difficult to build on.
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"A search of immediate descendants of the original owners of the land has determined that there is no living person to offer the land back to in terms of the Public Works Act 1981," a report said.
On Tuesday, councillors approved a decision to accept offers from adjoining neighbours who were maintaining the land at present.
If there was no interest from them, the council would then take it to the open market.
The process would be typical of other council land disposals, where all offers would be brought back to elected members for final decision.
The land was originally bought by the council for $3000 in 1970.
— LDR is local body journalism co-funded by RNZ and NZ On Air