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A 45 square metre apartment in Parnell increases in value by 55% in less than three years

Property
A 45 square metre apartment in Parnell increases in value by 55% in less than three years
This Parnell apartment's price went up by 55% in less than three years.

The Auckland apartment market got off to a flying start at Ray White City Apartments' first auction of the year, with a Parnell apartment's price increasing by 55% in less than three years.

There were only two apartments offered for sale at the auction, both of which were likely to appeal to owner-occupiers.

The hot summer's day did not deter potential buyers from turning out and there was competitive bidding on both units.

The whole show was over in 10 minutes, with both units selling under the hammer, allowing all concerned to adjourn to the beach or their favourite watering hole for the afternoon.

Details of both sales are below:

6/27 Cheshire St, Parnell. Aero building. A 45 square metre, one bedroom apartment with a narrow balcony and a basement car park. Vacant. It had an interesting sales history. According to QV.co.nz it was first purchased in March 2012 for $240,000, then sold again in June last year for $310,000. It was subsequently given a makeover, dressed to within an inch of its life and put back on the market in November, selling at this week's auction for $365,000. It's rates were $1249 and the body corporate levy $3362. The agent was Donald Gibbs.

4e/22 Emily Place. Four Seasons building. An 83 square metre, two bedroom unit in a high stud character building. Vacant. Sold for $565,000. According to QV.co.nz it was last sold for $290,000 in 2004. Rates were $1395 and the body corporate levy $7245. The agent was Gillian Gibson. 

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3 Comments

It's headlines like the one for this article that fuel the absurd property market in Auckland and elsewhere.  Stating that the price of the apartment  went up by 55% in under 3 years is horribly misleadings. It implies growth, by only showing 1 side of the equation.  The article makes no effort to account for the cost of the improvements as a factor in the increased price.  If I buy a house for 100K, add another 50K in improvements and it sells it for 150K, I can claim a 50% increase in value too, but the reality is that the "true" increase was zero because the baseline cost went up......but of course, that wouldn't grab headlines or fuel speculation as much.

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Your really not allowed to point out the truth behind headlines like this, the whole real estate market is built around pretneding housing is how you make money, not how you spend it!

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Pretty funny

"The first thing is the role of the media," he said, citing articles about house prices being given the same prominence as articles about tragic drownings.

"House prices are one of the sensations. The media played a huge role in Ireland in record prices - the best suburbs to buy, highlighting people who had bought and three months later made huge gains of 20 or 25 per cent or more.

"It's a mirror image of the same thing here. It has a huge influence because we do have this massive herd instinct.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11390463

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