Houses nearly twice as likely to sell at auction in Wellington than Auckland

Houses nearly twice as likely to sell at auction in Wellington than Auckland

Homes are more likely to be passed in at auction in Auckland than they are in other centres, according to the auction results achieved by the country's largest real estate agency last week

Harcourts auctioned 75 residential properties in Auckland and achieved sales on 33 of them, with the remainder being passed in for sale by negotiation.

That gave the Auckland auctions a clearance rate of 44%.

In Christchurch Harcourts auctioned a similar number of properties to its Auckland offices, with 79 going under the hammer last week, but sales were achieved on 49 of them, giving a clearance rate of 62%.

But the highest success rate was in Wellington, where 24 homes were auctioned and sales achieved on 19 of them, giving a clearance rate of 79%.

In Hamilton it was 50/50, with exactly half the properties auctioned changing hands.

Prices at Harcourts' Auckland auctions started at $560,000 for a house at Stanmore Bay on the Whangaparaoa Peninsula and went up to $2.85 million for a house at Maraetai. In Hamilton prices started at $360,000, in Hawke's Bay the cheapest auctioned property went for $257,000, in Wellington prices started at $332,000 for a home unit at Waikanae, and in Christchurch prices ranged from $345,000 for a house at New Brighton to $2.485 million for one in Fendalton.

To see the results of Harcourts' auctions last week,. including those held in Taupo, Queenstown/Lakes, Blenheim and Invercargill, go to our Auctions/Sales Results page, which has photos and details of the properties auctioned, including those that didn't sell, and the selling prices of those that did.

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His only tell part of the story, as very few house in Wellington are auctions, unlike in Auckland. So if someone in Wellington is wanting to sell via auction, they would want be wanting it to sell on the day. Most houses in Wellington seem to be sold via tender, which should get a better price for the buyer.

Tenders have traditionally been more common than auctions in Wellington but auctions are becoming increasingly common in the capital and the number of auctions there has been tracking up for the last few years. In September the number of auction sales in the Wellington region was up 235% compared to September last year, according to the REINZ.

Rob, actually selling by auction in Wellington at present is to achieve a premium price, not because they have to sell. Went to the Harcourts auction at Paraparaumu on Kapiti Coast on Nov 3 3016, absolute frenzy 10/11 sold under hammer. Only property they did not sell was just south of Levin so not actually in Wellington/ Kapiti Coast. See this site for details http://auctionaction.co.nz/
One property in Waikanae Beach (2 Willim Noel) sold at bought forward auction 6 days after listing on trademe, for 710K (GV 445K) (was scheduled to be auctioned on Nov 17).

This was all highly predictable though. With the new LTV ratio's, 40% of a Wellington property, is materially considerably less $$$ than 40% of Auckland. Plus Wellington prices have been pretty flat since the GFC so in absence of other areas to excite speculators, the Eye of Sauron was always going to move eventually.