Apartments sell at gross yields above 7% while houses in investor friendly Ranui and sections on the Coromandel go begging

Rented CBD apartments sold at auction this week achieved yields above 7%, while a fully furnished one bedroom apartment in the up market Metropolis building sold at a $23,000 discount to its asking price, but still achieved a healthy premium above its previous purchase price for its vendor.

Both Ray White City Apartments and Bayleys held Auckland apartment auctions this week. Unusually, Ray White also offered two vacant sections located next to the Lakes Resort golf course at Pauanui. Both had rating valuations of $180,000 but each was passed in with a top bid of $45,000.

As well as apartments, Bayleys auction also offered three stand alone family houses in the west Auckland suburb of Ranui, which is usually a happy hunting ground for investors. However while the apartments found buyers, the Ranui houses were all passed in. The full results of the apartments offered at both auctions are listed below.

Sold by Ray White City Apartments:

• 14b/8 Bankside St. The Waldorf building. A fully furnished, 30sq m studio with rent fixed at $1300 a month until February 2015. Sold for $211,000, providing a gross yield of 7.4%. Body corporate fees $3755 (after prompt payment discount). Rates $850. According to QV.co.nz the property was originally purchased for $205,500 in 2005.
• A1/43 Anzac Ave. The Cambridge building.  An unusual property comprising a furnished 40sq m one bedroom apartment on the ground floor and two accessory units (one being a reception area for the building) which are rented by the Body Corporate on a casual basis. The body corporate levy for this property also covers the cost of electricity and water for the flat. The flat was rented at $300 a week and the two accessory units at $565 a month. Passed in with a highest bid of $84,000. Body corporate levy $14,400 (after prompt payment discount), rates $1624.
• 1105/1 Courthouse Lane. The Metropolis building. A vacant 44sq m, north facing, one bedroom apartment offered fully furnished and fitted out, right down to the egg cups in the kitchen and sheets on the bed. Sold for $320,000, compared to the advertised asking price of $343,000. Body corporate levy $3766 a year (before prompt payment discount) plus a special maintenance levy $5160. Rates $1104. According to QV.co.nz the property was originally purchased for $227,500 in 2002 and resold in 2006 for $239,000.

Sold by Bayleys:

• 25i/16 Gore St. Harbour City building. A vacant, fully furnished one bedroom apartment. Sold for $215,000. Body corporate levy $3437. Rates $1072.
• 1704/11 Liverpool St. City Zone building. A two bedroom corner unit with city and harbour views. Rented at $365 a week. Sold for $265,000, providing a gross yield of 7.2%. Body corporate levy $3716 (less 15% prompt payment discount). Rates $943.