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Although most units attracted multiple bids at the latest Auckland apartment auction only a couple were sold under the hammer

Property
Although most units attracted multiple bids at the latest Auckland apartment auction only a couple were sold under the hammer

There was only one major Auckland apartment auction this week, held by Ray White City Apartments.

There was a good mix of apartments on offer, including an upmarket unit in the Endeans Building at the bottom of Queen Street,  a three bedroom leasehold unit in Parnell, a one bedroom unit in the Precinct complex on Lorne St, a one bedroom unit with two car parks in Grey Lynn, and a couple of traditional investor units including one in the Zest  building on Nelson St and another in the Hobson Oaks building on Hobson St.

That gave a good mix of units that would appeal to both owner-occupiers and investors and six of the seven units attracted multiple bids and there was a single bidder for the seventh.

However the bidding was generally slow and for most of the properties there appeared to be a gap between the vendor's expectations and the price buyers were prepared to pay and in spite of the best efforts of the auctioneer and his team, by the end of the auction only two of the seven properties had sold under the hammer and the remainder were passed in for sale by negotiation.

The two that sold were a one bedroom unit in the Oaks on Hobson complex and a unit in the Sienna Terrace complex in Grey Lynn.

Details and photos of the properties offered and the prices achieved on those that sold are available on our Residential Auction Results page.

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12 Comments

An explanation of banking that I hope you all enjoy. This little clip is now 7 years old. The debt issue was already a problem back then but, low interest rates, specu-debtors, massive DTI ratios and interest only borrowing, not forgetting, turn a blind eye regulators and governments, have allowed it to continue to proportions that rival Northern Rock in 2007. 8 times interest only mortgage anyone?

https://www.youtube.com/watch?v=DyaitC91hEM

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Vendor expectations still too high.
Still some drivers in the Auckland market - housing shortages, historically high levels of immigration and historically low interest rates which are both expected (e..g. RBNZ) to continue in the medium term - but the consistent message coming out of auctions is that vendor expectations are still too high.
However despite these drivers, it is purchasers that seem to be the most important driver and they are saying prices are too high and it appears that could determine future of house prices.

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With the high risk of getting burned, buyers are unprepared to chase up prices. Why hand unrealistic vendors an easy exit? This standoff is just a prelude to further falls.

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Apartments/units not the best investment or buy for the owner occupier anyway. I have only ever bought one but thats a beach front luxury for my family, the capital gain is smallest compared to my other investments. The problem with apartments is that the supply side increase as soon as prices go up as projects become feasible again. Not the case with houses with land in good surburbs, supply is really restricted and longer term gains will happen with population increase, etc.

I agree apartments will take a hit in terms of prices as landlords start disappearing. Why do you think, developers are dropping apartment projects, cost of material and building costs are insane. The CoL has just accepted this and happy with the ridiculous build cost.
RP, maybe you write to Taxinda and tell her to drop the new builds. FHB can get these apartments instead.

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Chessmaster, John Key also suggested FHBs buy apartments too. Note the 35 failed building projects under National's watch here; https://www.interest.co.nz/news/84030/key-says-would-still-recommend-fi…

Property everywhere is going to disappoint!

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Not a fan of him either. He said we have no crises and didn't do anything, while this new lot have been screaming "crises", they will not do anything about it either. I think CoL will make it worse as developers will do even less under their watch. I don't know why nobody is addressing the supply of material monopoly or the useless incompetent council. I can't see supply increasing with these factors.

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Chessmaster
Your comment implies that residential housing with land in ‘good’ suburbs is mis-priced – in favour of buyers.
Remember vendors know what you know too and so any ‘informational advantage’ you claim buyers/investors have is already built into the price. Ditto apartments.

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the Crash is coming.

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I

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I'm all for foreign buyers being allowed to buy apartments rather than land. Have seen this work well for locals in other places.

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Rick where exactly was that ?
Classic examples in The commonwealth of foreigners buying apartments are Sydney Melbourne Toronto Vancouver and in all cases it has increased dramatically prices not only of existing apartments but placed strains on available skilled labour throughout the construction industry for new builds as more apartment buildings were constructed to meet foreign & local speculative demand resulting in higher costs of constructing anything including affordable housing
On a holiday note just been to Prince Edward Island highly recommend it beautiful beaches for miles & miles

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I'm not. New builds yes, existing no.

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