"But we were allowed to announce on the rostrum - and it gave us great pleasure as good New Zealanders - that the painting remains in New Zealand."
The photograph on which the painting was based also sold at auction, fetching $37,520 including buyer's premium - well over the $20,000 it was expected to fetch.
Ms Davies said the prices were reflective of the interest in this year's Gallipoli centenary.
Earlier today, New Zealand First leader Winston Peters urged the Government to purchase the painting so it would not be lost from public view, and possibly from New Zealand.
Mr Peters said if the artwork was not purchased by a museum or the Ministry for Culture and Heritage, it would be "a dark stain on this centennial year of the Anzac landings".
Had the painting sold to an overseas buyer, the ministry could still have kept it in New Zealand using its powers under the Protected Objects Act.
The auction house said the watercolour painting was "undoubtedly the most famous image of the Gallipoli campaign".
It was originally believed to depict Anzac folk hero John Simpson Kirkpatrick, who used a donkey to carry wounded soldiers during the Gallipoli campaign.
But in fact, the original photograph featured New Zealand medic Richard Henderson, who took over from Simpson when he was killed.
The painting is similar to a smaller version of the same scene, also by British-born painter Moore-Jones, which sold for $257,000 earlier this year.
It had been owned by the Commerce Club of Auckland, which had displayed it in the club's Remuera clubrooms for many years.
It was later loaned to the Auckland War Memorial and Museum, where it has been an integral part of the Scars on the Heart exhibition.
Painter Moore-Jones died a hero in 1922 after he was badly burnt rescuing people from a hotel fire in Hamilton.
