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A second Sandringham house sells for $1.7 million as prices head sky high

Property
A second Sandringham house sells for $1.7 million as prices head sky high
This house in Sandringham sold for $1.7 million, the second such sale within a week.

Any thought that the record $1.71 million price achieved at auction last week for a house in the Auckland suburb of Sandringham was a fluke, were dispelled when another Sandringham house sold for almost as much this week.

This week's price setter was a four bedroom, two bathroom villa just up the road at 70 Paice Ave, which was sold at auction by Bayleys for $1.7 million.

It sat on a 708 square metre section and like the house that sold for $1.71 million last week, had been refurbished to a high standard.

Both sales were handled by the same agent, Damon Elia of Bayleys Mt Eden, who said the main difference between the two were that the house that sold last week was at the southern end of Sandringham on an elevated site with good views.

Although the house that sold this week did not have views, that was balanced by the fact it was at the northern end of the suburb, closer to the CBD and Mt Eden shops.

Elia said there were thwarted buyers from last week's sale who were keen to buy this week's offering and there was still unsatisfied demand for similar properties in the area.

He did not want to speculate on how high prices could go.

The house at 70 Paice Ave had a 2011 rating valuation of $630,000 which was increased to $970,000 when the new valuations were issued this week. 

The rear deck and backyard of the Sandringham house.

The main living area of the house (above).

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10 Comments

If ever you needed evidence that council valuations hold no relation to actual values there it is.

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The council valuation is based on this house:

http://primelocations.co.nz/property/70-paice-avenue-sandringham/

 

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They aren't council ratings, they are rateable valuations prepared by a third party. They are fairly accurate too, and are what are considered the house would sell for if it was on the market today. That doesn't stop people payinga  lot more, as what people are prepared to pay isn't regulated. If a house is worth more than it's RV, then it is likely to be over capitalised for the area. But the RV is all a government or council would likely pay if they had to buy the property back, eg such as after an earthquake and the land under it is red zoned, or needed for key infrastructure, so buyers do take quite a big risk paying more than the RV

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They are definitely not fairly accurate. Talk to any valuer. 

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The original house was 81sqm. So how big is the new house?

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Also shows how unfair and unjust council valuations are ..CV at $ 970,000 so pays much less rates then a house with CV of $ 1.425 mil but both have almost similar market prices ..means coucil has been very unfair to some at the benefit of some others in collecting its rates by totally baseless valuations ...

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If you disagree, object!  The procedure to do so has been inplace for a long time.

 

How much extra in rates are you prepared to pay for auckland council to rectruit a huge team of valuers to send around to each individual house for a site inspection, inside and out, to get a more accurate valuation?

 

Furthermore with a current value of improvements of only 100K, one can only assume this is the value prior to renovations.    I expect the developer placed this on the market as soon as work was complete, so it is not surprising that the C.V. has not yet been updated.

 

Here is the house only a few months ago that the current valuation is based on, quite a transformation.  http://primelocations.co.nz/property/70-paice-avenue-sandringham/

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Rates aren't supposed to be a wealth tax you know. They are supposed to be a fair way of distributing infrastructure costs across the popualtion. But they aren't, as a house of 8 people may live in a house worth 400k. But an elderly couple may live in a house worth 1.5 million. Yet all people are receivng the same council services, but the elderly couple are paying multitudes more in rates for those same services.

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Time Auckland put rates up to remain in proportion with all these wonderful new house values....With such huge abundance of new wealth, it's only fair some should be shared with our cash strapped council...

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Huts in Auckland are getting quite expensive.

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