A council-owned block of residential land in Queensland will soon be sold off to a property developer without a public auction. 

An 8,223-square metre site at Maleny, part of the Sunshine Coast Council, is set to be sold to developer Maleny Estates for $850,000. 

Council staff say the block was last valued at $780,000, despite a nearby 800-square metre residential block being on the market for $565,000. The council says the price difference reflects the fact that there is no road access to the site.

The developer reportedly approached the council to purchase the land in recent years, triggering discussions leading to the sale. 

In exchange for the desirable tract of land, the developer would hand over 1300 square metre narrow block for $130,000, which will allow the council to lay water and sewerage infrastructure, and connect nearby roadways.

The sliver of land should better link the surrounding area to the council's 126-hectare Maleny Community Precinct, which is set to include sporting fields, children's play area, aquatic centre, wetlands, large open parklands, rainforest areas, walking trails and Maleny's 18-hole golf course.

Queensland law requires councils to sell off “valuable” assets either by tender or by auction, but the council did not in this case because it deemed that it was in the public interest for the land to go to the developer.

“Given the remote location of proposed Lot 1 and restricted access, it is not considered appropriate to dispose of the parcel by the way of tender or auction,” a council report says.