Plenty of buyers but more apartments being passed in at auction

Plenty of buyers but more apartments being passed in at auction
An apartment in the Volt building sold for $530,000.

Things have been a bit quieter at the Auckland apartment auctions in the last couple of weeks.

Although there has been plenty of buyer interest and often competitive bidding from investors and potential owner-occupiers, fewer are selling under the hammer and more are being passed in for sale by negotiation.

This may be a result of the tougher new loan to valuation ratio restrictions that have been introduced for mortgages on investment properties, which are predominant in Auckland's CBD.

Or it may just be investors having a breather before the traditional start of the spring sales surge.

At Barfoot & Thompson's apartment auction this week, five apartments were offered and two were sold under the hammer and the other three were passed in. 

One of those, a two bedroom apartment with an adjacent studio, each with their own entrance and balcony but able to be combined into a single apartment, did not attract a single bid.

Two other apartments which were due to be offered at the same auction were withdrawn from sale prior to the auction commencing.

Just up the road Ray White City Apartments had just one apartment on offer at their weekly auction.

It was a 48 square metre, fully furnished, one bedroom apartment in the City Life building on Queen St.

There were multiple bidders for the property but it was passed in with a highest bid of $420,000.

To see the results of the latest Auckland  apartment auctions conducted by Barfoot & Thompson, Ray White City Apartments, Bayleys, City Sales, and Harcourts, go to our Auction/Sales Results page  or click on this link.

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Or vendors are being too greedy with high reserves?

Just spoke with my morgage broker in hamilton and she says it has ground to a halt!no one is getting approved.mAybe the reserve bank have finally won the battle!!!

Sounds like it is the out of AKL market which will see the biggest short term correction.

Location,location, location when buying property. Buy the best quality assets not the extremities because they are "cheap".

Market in Auckland seems to have ground to a bit of a halt. Not from lack of demand but that people are afraid to sell as they think they will be locked out of market as so little around. So few cashed up buyers so they are starting to take lower offers. Kind of reverse economics.