The cheapest property to sell at this week's Bayleys auctions in Auckland was a two bedroom brick and tile duplex in Favona that was leased to Housing NZ until 2024. It sold for $382,000.
The next cheapest auction sales were a three bedroom house at Pakuranga Heights which went for $520,000, a two bedroom cottage on a 1582 square metre section in Titirangi which went for $655,000, and a two bedroom home at Beachlands that fetched $735,000.
The majority of sales were for more than $1 million, and included a couple of homes in the Stonefields development that went for $1.25 million and $1.28 million, several St Heliers properties, a three bedroom house on four hectares at Dairy Flat that sold for $1.53 million, and sales in Ponsonby, Pinehill, Farm Cove, Eastern Beach and Remuera.
To see the full results of Bayleys Auckland auctions this week, with details and photos of all properties, including those that didn't sell, click on the following link:
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12 Comments
A 2-brm 1960's brick & tile unit in Mt Albert has sold for $ 797 000 , 77 % above it's CV of $ 450 000 ...
... Olly Newland says this is indicative of how far CV's are out of date , most being from 2013 , they ought to be 20-25 % higher ...
The seller of the unit is heading south .... no doubt chuckling all the way at his/her good fortune !!!
I have no knowledge of Akld suburbs. All I read was 2 brm 1960's brick and tile unit selling for $797k and thinking wtf?! If this is a to live in purchase, do people do the maths on how much more they need to earn there rather than upping sticks and moving to the regions and buying a newer home on a good section for considerably less? It just doesn't add up to me. As in I can only imagine that somebody or a couple on enough income to afford such a mortgage would probably have been hoping for a better pad than a 1960's unit? Or are people just that desperate to stay in Auckland and get on the ladder?
or someone drawing on properties owned/inflated by auckland prices expanding their portfolio. Rent must be astronomical, or it must be cap gain.
Could be developer looking to get enough sections while the cheap for future multi-levels.
One problem with apartments is the always go on expensive brown sites
This is the beginnings of the blow
At the start of this year these units were at best $500,000
Usually in a block of 3, this one is in a block of 2
Peter Thompson of Barfoot's in his sermon today reckons the blow has about 18 months to go
Hate to think the price of this type of 1960's abode getting to $1,000,000 at end of 2016
Of course the Herald likes to imply they pocketed the difference between sale price and CV - which is bollocks. They might have paid more than CV when they purchased it, paid agents to sell it, it was refurbished and they might have used borrowed money.
So if they purchased for $600K (who knows? - like the Herald reporter I'm too lazy to find out), spent $150K on renovations (which some people do). Financed all that for a couple of years for $60K and paid an agent/advertising $30K then they made - oh they LOST $43K on the deal. For this article to mean anything we need to know the figures involved. The CV and sale price mean nothing.
I live in Mt Albert. It is considered a middle/working class suburb. It's only in the last few months where the prices have gone through the roof. The sought after Gladstone Primary and Mt Albert Grammer is probably a contributing factor. Just to give you a rough idea on prices, a 1950's 3 room bungalow in do-up condition on 800sqm of subdivisible land sold for around 1.8m. That is on a street with some state housing on it. A single duplex unit sold for over a million a couple of streets away. In general, a typical 1950s 3 bedroom renovated bungalow on a full site (600sqm) should fetch between 1.4-1.6m. There is an area of Mt Albert known as the Golden triangle where prices are in excess of 2.5m.
Why don't the government look at removing the option to buy at auction during this property bubble. In a highly competitive market, with limited supply, auctions are always going to push prices up to what people can afford to borrow. People seem to be buying at a price which they can afford to borrow at which is fueled by the low interest rate, rather than look at the long game that interest rates will rise in the future. But it seems at some stage someone is going to be left holding the baby. But elsewhere in the country, auctions are hardly ever used, and there hasn't been the capital gain.
Does anyone know a person who would be able to buy a house in Auckland now?
Migrants coming with a lot of money???
To buy a 1m property it means that you need to have $500.000 deposit + $150.000 job to get a mortgage for another $500.000 - that would be pretty good position to start but I seriously doubt that this would be majority of migrants.
I was at the auction recently (Mt Albert area) there were 6 properties for sale:
1 - did not sell
2 - was sold to a couple that drove away in an expensive supercar (i guess not first home buyers)...
3 - bought by Chinese lady that outbid 2 builders (it was quite large section in Avondale)
4 - Bought by asian buyer in early 20's
5 - Bought by asian buyer in early 20's ... again
6 - Bought by asian buyer...
Of course it is impossible to comment on me if the buyers were NZ residents or not. But it just shows what is happening at the auctions. I rent from a guy that lives in Shanghai. Has 5 properties in Auckland - rents all them out.
For a normally working person at good salary (even $150.000+) it is impossible to compete with overseas buyers with unknown source of founding or the builders that will turn around the property quickly in few months.
What is disappointing is that there is NOTHING being done to stop this ridiculous situation.
Government should protect and support NZ citizens, or NZ residents that are COMMITTED to work and live in NZ!
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