Auction results: Two bedroom home unit sells for $1.02 million

Property

Prices at Bayleys' latest auctions ranged from $270,000 for an apartment in student alley to $4.125m for a house in Mission Bay

21st May 16, 5:02am by Greg Ninness

One million dollars would not have been enough to buy a traditional two bedroom home unit auctioned by Bayleys this week.

The unit (pictured) was one of a block of four units on busy Shelley Beach Rd in St Mary's Bay and came with a carport.

It sold for $1.02 million.

The most expensive home sold at Bayleys' latest auctions was a house in Mission Bay which went for $4.125 million.

Another in the same suburb sold for $2.65 million and another up the road in Kohimarama went for $3.625 million.

For those looking for something more affordable, a two bedroom unit at Bucklands Beach went for $708,000.

See below for the full results of Bayleys' latest auctions in Auckland and Hamilton, with details and photos of all properties, including those that didn't sell:

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50 Comments

by muntijaqi | 21st May 16, 8:44am 1463777055

speculators have lost their minds. 1 million for that thing??

by alexil | 21st May 16, 8:51am 1463777499

It means 1000 per week. I dont think anyone can rent it.

by muntijaqi | 21st May 16, 8:44am 1463777056

speculators have lost their minds. 1 million for that thing??

by ObeseBallerina | 21st May 16, 9:22am 1463779367

How do you know an investor bought it?

by alexil | 21st May 16, 9:31am 1463779883

Who else? Who want to live in unit does not have 1 million.

by ObeseBallerina | 21st May 16, 9:34am 1463780091

Someone who wants to live in Herne Bay?

by BadRobot | 21st May 16, 10:37am 1463783841

Or someone who wants something...anything so long as it's property.

by CJ099 | 21st May 16, 11:28am 1463786897

Screams of blatant money laundering to me, I mean why else would you buy a small unit at that price?? The CV on that property is $615k, so the sale price is not far from double the CV price (Red flag)!

And it really doesn't look much: https://www.bayleys.co.nz/Listing/Auckland/Auckland-City/St-Marys-Bay/1…

by ObeseBallerina | 21st May 16, 6:37pm 1463812654

CV from 2014. It looks fine. 60sq, free standing with a section in that area is punchy but its a prime location.

by Ginnypops | 23rd May 16, 8:37pm 1463992662

Doesn't look so bad to me. Fully renovated, new kitchen, indoor outdoor flow, great neighbourhood, exclusive use garden and covered off street parking. Saw another 2 bed unit in Burns Ave Takapuna a couple weeks ago - similar but 90 sqm and un-renovated with a 60's kitchen for $1,136,000.

by denpal | 21st May 16, 9:36am 1463780201

Great location, I'll bet in 10 years it will be worth $2m.

by alexil | 21st May 16, 9:39am 1463780386

What is so great? City full of drug addicted and beggars. And air is polluted. Better to live far from this.

by OpenPensionResolutn | 22nd May 16, 11:38am 1463873911

LOL, you here all night?

Seriously though, at the current rate of price appreciation it will be little more than 2 years.
Unless the bubble pops, then the purchaser loses their shirt.

by Machiavelli | 21st May 16, 9:52am 1463781123

That must be one happy vendor! Who bought it? Maybe some retirees are downsizing. If you sold a house in the same area, buying this unit for this price probably stacks up.

by alexil | 21st May 16, 10:01am 1463781689

Its obviously cold there. Not so good for old people.

by Zachary Smith | 21st May 16, 11:56am 1463788607

#Goodbuy. Here is the link:
https://www.bayleys.co.nz/Listing/Auckland/Auckland-City/St-Marys-Bay/1…

Very upmarket location. Units like this in the leafy upmarket central suburbs on quiet streets are going for $900k+. In a global super city they are quite nice and easy to make like apartments inside. Downsizers, singles and childless couples will be seeking them. These used to be very popular for young investors and I recall a decade or so ago a few news items of youngish people buying three or four. They will have done very well if they held onto them.

by Independent_Observer | 21st May 16, 3:16pm 1463800587

The more I think about the situation we find ourselves in with respect to such overvalued property in NZ, the more I realise the foolishness of tinkering with interest rates by the reserve bank/s. In essence, the reserve bank dropping interest rates and flow on effect for mortgage lending rates, is like giving money to a bunch of meth addicts (in this case property investors). It keeps them functioning but never fixes the true cause of the problem. Eventually the meth addict needs to be reformed and giving them money or more meth certainly isn't the answer.

Maybe we need different lending rules and interaction between OCR and bank lending rates. One to control general inflation and another to control property lending and values.

It's becoming clear to me the NZ general population has no self control when it comes to property at the moment, like a meth addict who just needs one more hit. Intervention is required to stop the cycle. It will be messy at first while we break free from the addiction, but for our long term health and well being it is certainly a step in the right direction.

by Zachary Smith | 21st May 16, 5:50pm 1463809853

What if your premise is wrong? You could have made your comment a few years ago about "overvalued property in NZ" and you would have been wrong when observing the values now. Why do you fail to consider the ramifications of a global market place? Are you really thinking enough about the situation?

I saw a picture of a makeshift sign on a refugee boat in the Mediterranean and it said, "We would rather die than go back". Those guys value the Western world very highly don't you think? NZ rates highly within the Western world itself and Auckland rates highly within NZ. When you consider the three rules, location location location, property values make more sense.

by Independent_Observer | 21st May 16, 6:13pm 1463811219

ZS. A couple of quick thoughts about your comedy troll:

- I thought NZ property was overvalued a few years ago. And I think it is even more overvalued now.
- This doesn't make me wrong. I wouldn't bet my house (which I don't own because I can't afford it in the first place, excuse the pun...) on the Auckland housing market staying at these lofty heights forever. I would love to see and inflation adjusted index for NZ property (full history) and I think you'd see we're experiencing a very strong anomaly - which will pass and return to fundamentals in time. An anomaly is not a norm.
- Ask anyone in NZ who lives outside Auckland what they think of the place and you'll certainly find that they don't 'rate it highly' as you say above. Quite likely the opposite.
- I bet there are a lot of Aucklanders who are thinking the same thing right now. "We would rather die than go back". ie those who have already cashed up and left (smart ones) and those living in tents and in cars who will eventually leave.

You don't wear glasses do you ZS? You know those ones with the rose tints?

by Zachary Smith | 21st May 16, 7:11pm 1463814712

People would rather live in a car in a car park in Papakura than in a state house in Southland. That's got to tell you something.
I'm not trolling, I'm serious.

by Independent_Observer | 21st May 16, 7:30pm 1463815829

It's a good point.

I know I certainly wouldn't but people don't make sense at the best of times...

by positivelywallstreet | 21st May 16, 7:39pm 1463816374

They obviously got the wrong map reference Zac.
Most immigrants in their position head towards the horticulture in BOP

by alexil | 21st May 16, 8:23pm 1463818988

Because they dont have money to buy a ticket to southland. They dont have money for relocation. And in southland they dont give a house as soon as you arrived. Also with they skills they have zero chance to find a job.

by positivelywallstreet | 21st May 16, 9:06pm 1463821572

Yes,
Southland has low unemployment , high gdp per capita but it needs skilled people.
It probably doesnt count financial services as a skill.

by Zachary Smith | 22nd May 16, 8:57am 1463864254

alexil - They dont have money for relocation

One of the families featured in a news item gave up a state house down south and drove up to Auckland in a large car.

by Justice | 21st May 16, 7:06pm 1463814370

What are basing your conclusion of undervalue on? Definitely not average NZ incomes. So you're speculating on the premise of continued foreign capital cash injection. Notice I used the word " speculating" rather than taking a real tangible figure such as......ANZI's

by Zachary Smith | 21st May 16, 7:32pm 1463815929

I didn't say it was undervalued currently. I think it is clear that average NZ incomes are not a strong factor. Basically I'm just saying, this is what happens if you open up the best real estate in the known Universe to all and sundry and sell it to the highest bidder.

by BadRobot | 21st May 16, 10:30pm 1463826642

Now I know you are couple of cans short of a six pack with this statement....

" best real estate in the known Universe "

by Zachary Smith | 22nd May 16, 8:59am 1463864396

BadRobot - Now I know you are couple of cans short of a six pack

And why do you say that? Do you know of some better real estate on Jupiter or near Alpha Centauri? Even you, a clod-like collection of condensers and an obsolete piece of scrap metal, should know that Dr Zachary Smith is an expert on these matters.
Exercising my advanced google-fu skills I found these links in a matter of seconds:

The Best Places to Live

The World's 10 Best Cities

Why are so many NZers so pathologically self-deprecating? We have a great place here, a great culture and it is worth lot of money. Would you all rather live in Venezuela?

by BadRobot | 22nd May 16, 10:05am 1463868337

Both of the links do not list Auckland or New Zealand as the best place to live. Auckland is listed as number ten and New Zealand as number five. Australia and Canada have more cities in the list than New Zealand. It is not a question of being self-depreciating - it is a question of being realistic about the good and bad in a city or country - otherwise people use the "good" as a excuse to do nothing about the "bad". Look at how the national government and the local government are arguing over the "city limits" in Auckland. People confuse talk with action. I see it in business , local government and national government. Each either puts their head in the sand and ignores any difficult decision or engages in continual "analysis" - resulting in analysis paralysis - they are scared of making any decision so they make no decision. FDR said

"It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something."

New Zealand needs to start making hard decisions about some of the difficult problems we face before they are forced on us by factors outside our control.

I don't know if you are arrogant , ignorant or downright delusional (or just a troll).

by Independent_Observer | 22nd May 16, 10:45am 1463870745

My observation is that 'strong leadership' these days, in all facets from business to councils and MP's, is the ability to avoid responsibility for any issue at all costs.

Taking responsibility might mean you end up with egg on your face, now wouldn't that be embarrassing...

So leadership is now an art form of pretending you have everything under control whilst never actually doing anything about anything. In essence it's who's the best actor. Who's the best at faking it. Our PM is simply the best at this. It's quite the talent. He is by far the best BS'er in the country! No wonder no one can out do him in government. His mouth nappy needs changing asap as it's getting quite full.

by Zachary Smith | 22nd May 16, 2:57pm 1463885834

Come on man, you're just quibbling with the figures. You're being pathetic, calling people trolls etc when you can't argue against them. Bad robot indeed, it's not the best it's number five! Australia and Canada have more cities! Duh, they're bigger countries but they have the same heritage. I've been saying all along that the British heritage countries, and the premier cities in those countries, are all experiencing the same thing, they all have the best real estate.

by BadRobot | 22nd May 16, 1:45pm 1463881524

What a load of bollocks. New Zealand housing is poorly made - the leaky homes saga (and by the way Vancouver has a similar leaky home saga as New Zealand) and poorly insulated. Not to mention land that has been built on that shouldn't have been built on - Abbotsford, parts of Christchurch. The list goes on.

India, South Africa and Jamaica are all British heritage countries - yet they don't have the "best real estate".

You are being pathetic for being arrogant in your beliefs - you appear to not understand that other people may have different views than you. Perhaps it's just an inconvenient truth.

by Zachary Smith | 22nd May 16, 2:56pm 1463885788

Nevertheless the facts speak for themselves. It isn't actually your opinion that matters but the buyers and they have spoken and on this fact alone I can rest my case. It is a matter of perception.
India, South Africa and Jamaica are not really British heritage countries having non-British majorities. The successful countries cherish their British past. That's why we kept the flag. You know that. Singapore and Hong Kong may be better examples for you to use but I have already explained why that is.

by BadRobot | 22nd May 16, 3:18pm 1463887093

You are dismissive of my opinion - that doesn't make your opinion "right". Australia wants to ditch the Queen and become a republic. The only reason people have bought in New Zealand is because we have limited controls on who can buy property, not because it is such a wonderful place to live (it's a store of wealth).

by Zachary Smith | 22nd May 16, 5:41pm 1463895702

Australia wants to ditch the Queen and become a republic.

It hasn't though has it?
You know, you shouldn't get too upset about people being dismissive of your opinion if you go around calling people "a couple of cans short of a six pack". I honestly thought that was an invitation to take every opportunity to be dismissive.
To be honest I just think you and some others bring everyone down. I like to stay upbeat and chipper.

The only reason people have bought in New Zealand is because we have limited controls on who can buy property...

I know right? Regardless of all those international surveys NZ is just kind of rubbish and they only buy here because its so easy to buy here.

by CJ099 | 21st May 16, 7:15pm 1463814906

For interest rates it's a race to the bottom. See you on the otherside! ;)

by Independent_Observer | 21st May 16, 7:27pm 1463815672

CJ099 or anyone else on this site - I haven't studied Economics so I'm quickly getting out of my depth here. But why does OCR need to be linked to private mortgage lending rates by banks?

Especially if inflation in housing appears irrational and not associated to general economic inflation/CPI?

by BadRobot | 21st May 16, 10:39pm 1463827180

It doesn't.

http://www.mortgagerates.co.nz/article/976496476/the-link-between-ocr-c…

Other factors should influence the interest rates for mortgages - one being risk. I don't think the interest rates being charged reflect the true risk that the banks are exposing themselves by lending to investors especially those on interest only loans.

by Independent_Observer | 21st May 16, 10:59pm 1463828367

BR - good article thanks. I think I'm getting closer. But what I still don't understand is that given the extremely high level of private mortgage lending we have as a proportion of all bank lending and the high inflation of property prices, shouldn't we be raising interest rates at the moment, not dropping them? If CPI is low, but is such a small part of bank lending (or perhaps I'm missing the relationship here), why does it factor into the reserve banks decision to raise or lower the OCR with such significance?

by alexil | 21st May 16, 9:43pm 1463823822

Almost same happening here http://www.cbc.ca/beta/news/business/crea-home-prices-foreign-buyer-eco…

by BadRobot | 21st May 16, 10:40pm 1463827237

Deer - headlights

by OpenPensionResolutn | 22nd May 16, 11:39am 1463873988

This is a very stupid country.

by Ezy | 22nd May 16, 8:35pm 1463906130

Just came back from a week in Brisbane. It's a city of comparable size with Auckland where wages are 20% more and the cost of living 20% less dollar for dollar. Not to mention their dollar is stronger. There are multiple cranes on the skyline some building huge skyrises. Not to mention quality infrastructure with good public transport. It's a city on the move. Having lived in Auckland for 2 years now it was a stark contrast. The emperor definitely has no clothes.

by positivelywallstreet | 22nd May 16, 9:23pm 1463908999

We still cant face that the GDP of auckland province is a third of queensland, plus or minus a bit.
The emperor is not only naked he doesnt have an empire.
After all the changes are made to auckland...what are they going to eat?

by Ezy | 22nd May 16, 9:47pm 1463910448

Unfortunately Auckland's only industries of note are immigration, property and by proxy - banking. The emperor will be lucky to be eating even noodles once the OCR is exhausted.

by positivelywallstreet | 22nd May 16, 9:54pm 1463910849

A good choice for a global city but unfortunately not enough money.
Have they tried drilling for oil or manufacturing weapons systems?
Robots?
Actually a lifetime ago i heard someone say we should do munitions..

by Zachary Smith | 22nd May 16, 10:12pm 1463911920

Auckland Province was abolished in 1876. Do you mean Auckland Region? As Auckland Region has a third of the population of Queensland I'm not surprised the GDP is only a third.
Auckland is going to still be here long after you have gone.
Don't you guys have something more constructive to do on a Sunday night instead of writing negative comments about Auckland?

by Ezy | 24th May 16, 11:59am 1464047969

You're right ZS - they are negative comments. Unfortunately they're all factual though. Unless you can point out a false statement made or point to a shining industry driving the lionshare of Auckland's GDP I've left out?

by moa man | 23rd May 16, 1:03am 1463922183

Well buying property can be confusing for some. Hard to define a value. Read an article about it only recently.
- Chinese tycoon who took over Aston Villa 'thought he was buying a house

http://www.thedailymash.co.uk/sport/sport-headlines/chinese-tycoon-who-…