Auction results: Old pub sells for $165,000

Property

Only one Auckland home sold for less than $600,000 at Harcourts' latest auctions

8th Jun 16, 2:27pm by Greg Ninness

In Auckland the price of homes sold at Harcourts' recent auctions ranged from $456,000 for a house at Manurewa to $2.29 million for a house at Sunnyhills in the eastern suburbs.

The Manurewa house was the only one to sell for less than $600,000 but there were plenty that sold for more than $1 million.

In Taupo, $357,000 would have bought you a modern home on Acacia Bay Rd (pictured), in Christchurch prices ranged from $205,000 to $1.13 million, and in Invercargill you could have picked up a former pub for $165,000.

See below for the full results from Harcourts' recent auctions:

You can receive all of our property articles automatically by subscribing to our free email Property Newsletter. This will deliver all of our property-related articles, including auction results and interest rate updates, directly to your in-box 3-5 times a week. We don't share your details with third parties and you can unsubscribe at any time. To subscribe just click on this link, scroll down to "Property email newsletter"and enter your email address.

We welcome your comments below. If you are not already registered, please register to comment

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

22 Comments

by Machiavelli | 8th Jun 16, 3:56pm 1465358180

See 6 Hepper st in New Lynn for $1,098,000. A house on a half site on Mason st went for $920,000 last week. Looks like $1M + for full sites is the new normal in New Lynn. It's the Newmarket of the west.

by Crazy Horse | 8th Jun 16, 4:54pm 1465361694

Meanwhile for NZD 1 million may I present the following ....... http://www.zillow.com/homedetails/18342-Elkwood-St-Reseda-CA-91335/7133… .......New Lynn v Reseda ...no contest ! :)

by bender | 8th Jun 16, 5:20pm 1465363214

Or these:
http://www.zillow.com/homes/for_sale/Essex-CT/57857208_zpid/395679_rid/…

http://www.zillow.com/homes/for_sale/6845960_zpid/globalrelevanceex_sor…

by Zachary Smith | 8th Jun 16, 5:44pm 1465364673

The first house I look at, in Essex, was listed for 824k in 2008 and now they are asking for 599k. That doesn't fill me with much enthusiasm.
Anyway, you guys head over there and let us know how it all works out.

by BadRobot | 8th Jun 16, 5:51pm 1465365105

and your point is....

by Zachary Smith | 8th Jun 16, 7:15pm 1465370132

My point is that it may appear to be good value but in reality it may not be. A bit like cheap shoes, they turn out to be more expensive than quality ones. Those houses could be really bad investments.

Also I would genuinely be interested in the story of an ordinary Kiwi going over there and building a better life for themselves.

by hannah wire | 8th Jun 16, 7:45pm 1465371942

I agree, an investment in this property would be a big mistake. I'm definitely going to spend my money more wisely, probably on a lovely 1980s-built monolithic cladding house in New Lynn. Top quality right there, and as we know, Auckland property is different and will never reduce in price. It's because of the solid housing stock we have here - it may look bad, but my motto is there isn't a problem a little Exit Mold won't fix!

by BadRobot | 8th Jun 16, 8:18pm 1465373882

or a wrecking ball....

by Crazy Horse | 8th Jun 16, 8:34pm 1465374892

hannah wire ...So true !! why people want to invest in Auckland residential property is beyond me ??? ....sold in Auckland in March just gone....what a relief, too much capital tied up, was only receiving 2.8% gross return.......truly marvellous !!

The Auckland property market is just a "cash cow" for the banks, RE agents, advertisers, accountants, lawyers and all their "hangers on" .......all based on the "greater fool" theory that some clown is going to come along and pay "X" amount in "Y" length of time ......

Also a question for Machiavelli ......would "you" pay those sale prices for those 2 New Lynn properties you mentioned ???

by Zachary Smith | 8th Jun 16, 9:34pm 1465378489

Who knows what the future holds but up until now investing in Auckland residential property has been an absolute winner for me for the last thirty years.
However I hope many people follow your advice as we landlords need a steady supply of tenants.

by Machiavelli | 9th Jun 16, 8:51am 1465419102

Crazy Horse - if I was in the market to spend $1m in Auckland, it would be my top pick! New Lynn is going through a big change and sub-divisible sites there are a good long term investment. I'm not currently looking to buy though and definitely wouldn't buy mono clad if I was! I've been out of buying mode for some time now. Every market has a peak and I'm not buying at or near the top of it!

by Crazy Horse | 9th Jun 16, 11:47am 1465429631

Machiavelli.....some thoughts ....you have just answered my question, as you yourself wouldn't buy at these prices in New Lynn and you also said the market, in your opinion, is near or at its peak ....so you are relying on the "greater fool" theory, that another clown will come along and pay those prices ...hence this Auckland residential property market is now in "ponzi" territory and has been for a while.

I love property, don't get me wrong ....it creates steady cash flow, but in this Auckland market where I was getting 2.8% gross return with my Auckland property vs. my current gross return of 15.8% and 12.5% in the USA (so much of a better build and way cheaper quality materials ) I am just so glad to be out of the Auckland property "ponzi" rat race.

By the way, good luck with those rent rises ......you may get them, but there will only be more people crammed in, creating social issues and much more "wear and tear" ...used to be a property manager, so well aware of all the "porkies" tenants would tell ....landlords too by the way.

by Crazy Horse | 9th Jun 16, 11:49am 1465429750

by jerry_NZ | 8th Jun 16, 6:31pm 1465367516

There is still plenty of sub $500k properties available, mortgages are very affordable and it is the best time to buy! The investors are gone from the market, the auctions are quiet, no overseas buyers at all....

The market is definitely slowing down thanks to prompt actions of the government and RBNZ!

by James007 | 8th Jun 16, 8:03pm 1465373032

Really?

by Zachary Smith | 8th Jun 16, 9:37pm 1465378674

Poe's law is an Internet adage which states that, without a clear indicator of the author's intent, parodies of extreme views will be mistaken by some readers or viewers for sincere expressions of the parodied views.

by jerry_NZ | 8th Jun 16, 11:51pm 1465386713

Of course not - pure sarcasm...

by Joe Public | 9th Jun 16, 12:34am 1465389277

NZ homes are generally poorly made and cheap looking... you cant compare them to American homes. Cold homes poorly insulated with no central heating.

The new builds (although better insulated) look fairly cheap also and are not much better than those built in the 60s/70s.

What do you expect from a small nation especially when you have a few large monopolies supplying the materials at prices 30% higher than Australia and the cost of land going through the roof with a clueless government running the show ?

by Joe Public | 9th Jun 16, 12:38am 1465389496

Why would we make better houses that the US ? They are usually industry leaders in their fields.

by Zachary Smith | 9th Jun 16, 5:44am 1465407866

You're mostly paying for the land in the good locations. Location is the first rule or real estate and always will be. Free land available in Eastern Siberia I hear.

by Joe Public | 9th Jun 16, 6:58am 1465412324

Good news Zac is you don't need to go to Siberia.... 70% of Auckland's land is Rural

http://theplan.theaucklandplan.govt.nz/rural-auckland/

by Zachary Smith | 9th Jun 16, 7:28am 1465414126

It may be rural but it ain't free and is largely protected from exploitation due to it being in a choice location. The whole emphasis of that plan is to keep Auckland beautiful, vibrant and productive thus retaining its value on many levels.
What I have been saying all along is that we really want Auckland to be too expensive for most people BECAUSE it is a global market now.
The only way to keep NZ beautiful is jealously guard the borders and restrict population inflow. If that is not possible then economic measures are the next best thing. Too expensive in the main centres and not so economically viable in the small towns. It is actually a good thing and will save our identity.

Young Kiwis can head south of the Bombays and reinvigorate the smaller towns. Build a new Auckland. Then the migrants will follow ....not sure why other people can't do this themselves but that's another discussion.