Coastal grazing block auction in Victoria cements richest postcode claim

Even with the incredible prices being paid for farm land in the Wonthaggi district, this one tops them all and further cements its reputation as the richest farming postcode in Australia.

At the fall of the hammer on Thursday, the Cape Paterson block (postcode 3995) made an amazing $50,606 per acre at the mortgagee sale.

The final sale price was more than double what most expected.

The 40 hectare (99 acre) farm block attracted four active bidders at the Ray White Rural sale.

It is thought most of the buyers are more interested in the opportunities for applying to build a home on the coastal block rather than trying to recoup their outlay on beef.

Just this year, farm land has sold for prices of $16,505/ac, $18,330/ac, $22,000/ac, $18,056/ac in this district.

Dairying was once strong in this rich farming pocket of the Wonthaggi region but today the focus is mostly on beef.

The bonanza in sale prices has been fuelled in recent years by these smallish farm sizes, the coastal views and being just over 100km to Melbourne.

Thursday's auction of the Cape Paterson grazing block gave buyers a chance to buy a block slap bang on the coast and not those of a few kilometres inland in the Woolamai area.

Agents say this grazing block had unrivalled views over the Bunurong coast and is just east of Cape Paterson township.

Now the buyer will have to approach the Bass Coast Shire Council for a permit to build to cash in on the spectacular views of the Bunurong Marine National Park, a protected 2100ha marine park.

At the moment it just has a farm shed, with power.

The block has an all weather central track, shedding and stockyards.

Water is supplied by the ample dams that double as a wildlife sanctuary.

The previous owner of the block is said to have experimented with a commercial hemp growing operation.

Agents for the sale were from Ray White Inverloch.