Remuera house sells for $6.4m, one in Mt Eden fetches $6m

Property

Barfoot & Thompson sold 117 homes at auction last week, including one that went for $6.4m and another that fetched $6m

7th Mar 17, 12:42pm by Greg Ninness

Barfoot & Thompson's auction rooms continue to be busy, with 260 residential properties marketed for auction last week and 117 selling either under the hammer or by 5pm the following day, giving a sales rate of 45% (see chart below).

Sales of note included a house in Remuera that sold for $6.4 million and another in Mt Eden that sold for $6 million.

The Remuera home has four bedrooms and a pool, but was on two titles and came with a total land package of 1571 square metres, "...offering massive creative potential for a family or developer," according to the description on Barfoot's website.

The Mt Eden house was a two storey bungalow on a 3040 square metre rear section, "...which could be developed as a multiple unit site subject to resource consent," according to its page on Barfoot's website.

Details of the individual properties that were auctioned and the prices achieved on those that sold are available on our Auction Results page.

**Barfoot & Thompson Residential Auctions: Week ending 4 March 2017**
Venue	Sold*	Not sold*	Total
On site. Various dates	15	13	28
Shortland St, CBD. 28 February.	9	9	18
Manukau. 28 February.	26	24	50
Pukekohe. 1 March.	1	3	4
Shortland St, CBD. 1 March.	30	44	74
North Shore. 2 March.	19	25	44
Shortland St, CBD. 2 March.	10	12	22
Shortland St, CBD. 3 March	7	13	20
Total All Auctions	117	143	260
*Sold includes properties sold under the hammer or by 5pm the following day. Not sold includes properties passed in at auction and remaining unsold by 5pm the following day and properties that were marketed for auction but withdrawn from sale or had their auction postponed prior to the event.

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70 Comments

by Double-GZ | 7th Mar 17, 1:04pm 1488845077

So this derelict Remuera house sold for $6.4m is big news, and the one I reported that sold for $7.2m two weeks ago at 64 Lucerne Rd was totally ignored. Regardless what is being reported, the high end properties are selling like hot cakes in DGZ.

by Bugger | 7th Mar 17, 9:30pm 1488875414

It's all good. The unitary plan has ADDED value, now that it's got the leafy suburb tick. A lot of these derelict or not so derelict houses (in DGZ or GZ) on huge sites will make way for multi unit systems. The Grammar schools are in for a squeeze. Zone adjustment on the horizon I'd say?

by Zachary Smith | 7th Mar 17, 1:17pm 1488845835

More excellent auction results for Auckland City. Although I'm not sure if the results page has been updated with these latest B&T sales. I'm hanging out to see what one particular property sold in my area and it hasn't appeared. All the properties around me have sold except one which is a bit problematic however a colleague just told me there are many for sale signs in Sandringham/Mt Roskill.

by Zombie ponzi | 7th Mar 17, 1:49pm 1488847790

There is a property I know of in the Sandringham area which has apparently had no interest whatsoever. No offers. No one coming through to look at the property. Nothing wrong with it either.

by head_down_bum_up | 7th Mar 17, 2:45pm 1488851156

Excellent results? clearance rate of less than 50%...keep telling yourself that mate, say enough you might believe it too...

by Crazy Horse | 7th Mar 17, 4:24pm 1488857092

So true h_d_b_u ...... sold my Auckland property March last year at auction and the clearance rate was way over 75% ....there is a definite difference in the market from 12 months ago.

DGZ et al can carry on all they like, but they are only dealing with a minimal section of the total market.

by mvgsmf | 7th Mar 17, 1:30pm 1488846636

You two (or is it one?) should get a room....mmmm DGZ your property looks sooo good...mmm Zach your capital gains...mmm we're so superior.....mmmmmm property property property...gains gains gains...mmmm other generations sooo stupid and live in lesser places....mmm...

by two otherguys | 7th Mar 17, 1:32pm 1488846741

They should get married

by Double-GZ | 7th Mar 17, 1:45pm 1488847556

We will, when Zach is ready.

by Greg Ninness | 7th Mar 17, 2:40pm 1488850829

Matron says there's to be no sneaking into each other's rooms after dark.

by mvgsmf | 7th Mar 17, 3:12pm 1488852727

I've got a feeling Ted / John/ David will be heartbroken....unrequited love :(

by Boatman | 7th Mar 17, 1:26pm 1488846376

Nuts

by Jay M | 7th Mar 17, 1:48pm 1488847681

Still only 45% clearance rate though...

by printer8 | 7th Mar 17, 1:51pm 1488847898

So just like tulips . .. houses are going to keep increasing, and increasing, and increasing in value at insane prices at insane rates. We all should buy houses and nobody will ever need to work again.
What would the IMF know???

by marg000 | 7th Mar 17, 1:55pm 1488848156

At an auction for a house in central auckland (Homes.co.nz low estimate of 950k), family in attendance stopped at 820k, phone bidder in Australia went up to 875k then passed in. Gives an idea of where people are currently seeing value (and weighing up market uncertainty) in that price range vs vendor expectation.

by Zoltuger | 7th Mar 17, 2:51pm 1488851505

I don't trust homes.co.nz valuations. My midpoint bounces around +/- 10% month to month.

by KH | 7th Mar 17, 8:30pm 1488871814

How sure are you there actually was a real person on the other end of the line in Australia ?

by marg000 | 7th Mar 17, 10:09pm 1488877789

Ha it seemed legit given the length of time discussions took, but yeah certainly wouldn't put that past plenty of REAs based on my experiences with them! Latest gem came from an agent selling a house soon to be literally surrounded by 32 new high density Housing New Zealand town houses..."they'll really enhance the area." Umm....

by CJ099 | 7th Mar 17, 2:00pm 1488848456

I reckon it's mostly local Investors cashing up and buying their dream retirement home.

by Penguin | 7th Mar 17, 2:08pm 1488848926

I think there are a lot of wealthy Yanks and European's looking for decent homes in the better locations.

by Crazy Horse | 7th Mar 17, 4:26pm 1488857217

Hoping are we Penguin ......

by CJ099 | 7th Mar 17, 6:26pm 1488864385

Well I guess it depends on which part of the US and Europe they're from, as certain areas such as Germany are more use to a rental culture and so too are those from larger US cities such as LA, San Francisco etc...

I can tell you that most US citizens coming in to the IT industry here in Auckland can't afford to buy a home even if they're on quite a high salary.

by Yvil | 7th Mar 17, 4:54pm 1488858873

The $6.4 M makes the headline but what is more important is the clearance rate of 45% on 260 auctions (which is a large = representative number). Considering that March is usually a strong month, my interpretation is that the market is still weak.

by rmnz | 7th Mar 17, 3:20pm 1488853214

An interesting result is the one for 3/48 Eastdale Rd, I went for a look at that one and it was originally priced at $615k, then changed to Auction, and eventually has sold for $565k.

by Zachary Smith | 7th Mar 17, 5:29pm 1488860969

I can't see that property in the results page although I see it sold for $565K in Sept 2016. Now I am a bit old school but I believe if you buy a property in September and want to sell it in March you're likely to take a hit.

by Double-GZ | 7th Mar 17, 6:46pm 1488865619

3/48 Eastdale Rd sold in Sep 2016 for 565k then again in Oct 2016 for the same price.

by Zachary Smith | 7th Mar 17, 6:55pm 1488866150

It doesn't show in the sales history on homes.co.nz though. Either way the cost of selling for the same price now would hit hard especially if you have to pay commission. To me this is quite normal and the houses that are flipped quickly, making big profits are anomalies.

by Double-GZ | 7th Mar 17, 7:22pm 1488867759

This one in Epsom has been flipped a few times in the past few years. The latest price was $2.33m sold in Jun 2016. https://www.barfoot.co.nz/543591

by pythagoras | 8th Mar 17, 11:06am 1488924383

16 Cornwall Park Avenue, Epsom
1.738M Jun 2013
1.817M Sep 2013
2.330M May 2015
2.170M Jun 2016

from
https://www.trademe.co.nz/property/insights/address/Auckland/Epsom/Corn…

Wonder what 2017's price will be?

by dictator | 8th Mar 17, 11:09am 1488924593

May 2015.

A pretty sweet deal flipping a property one year later for a $160k loss.

by mvgsmf | 8th Mar 17, 11:26am 1488925578

A $160k loss + the $50k agents commission..... But perhaps now the original money is now "clean' so a bearable loss? ;)

by dictator | 8th Mar 17, 11:30am 1488925835

It's a good way to funnel the money from your Tony Alexander special and give it a good wash. With a bonus tax write off.

by RickStrauss | 8th Mar 17, 11:48am 1488926915

Not that much more than paying your old ladies to feed it through the pokies at Skycity, presumably.

by rmnz | 8th Mar 17, 9:47am 1488919621

I hadn't seen historic data, thanks for sharing. I agree its a hit if commission etc is being paid, though with all activity shifting it for the same price is that behaviour a little....suspicious? I'm no expert on flipping.

by tothepoint - d… | 7th Mar 17, 7:59pm 1488869974

Auction clearance rates of less than 50% must be a particular concern - because this is the peak selling time of the year. (What's it going to be like come winter - and after interest rates have ratcheted up a bit further??)

Whatever - it's never great having to re-list a property after rejection at auction.......

by CJ099 | 7th Mar 17, 3:52pm 1488855143

Auckland currently at 10550 property listings and still climbing.

by RickStrauss | 7th Mar 17, 4:11pm 1488856299

I think a few of us are losing interest in Auckland overall...less convinced now it's going to be a great place to live in 10-20 years, and not convinced at all that Ranui palaces at 9-12 price-to-income (median) ratios are a good investment.

by Jay M | 7th Mar 17, 4:54pm 1488858891

Come to the regions! Quiet, takes 10 minutes from anywhere in this lovely regional city to get to work (there are actually lots of jobs), houses are reasonably priced (but they have gone up).

Wife and I moved in September, sold out of Auckland, great decision!

by Zachary Smith | 7th Mar 17, 5:31pm 1488861062

Thanks so much for your comment Jay M. I feel sure people aren't seeing the opportunities in New Zealand around the regions. The good old days still exists out there.

by Echinops | 7th Mar 17, 6:42pm 1488865375

Jay Money you have just done what your name suggests. I don't blame you ;-)

by RickStrauss | 7th Mar 17, 6:24pm 1488864264

Yeah, we're likely going to do that. Just considering when and where. (And whether we spend some time offshore again first.)

We may buy in Auckland at some point, but as per above, we're starting to lose interest not solely because of pricing. Like, what...people think the Southern motorway is going to be driveable and East Coast Bays are going to be swimmable all the time when we've crammed another 500-600,000 people in? It's not like we have the money to invest massively in infrastructure.

I've already spent years living in a crowded metropolis overseas. Getting gradually less interested in this brave new Auckland National is dead set on.

by CJ099 | 7th Mar 17, 10:20pm 1488878434

Yep Auckland could be a nice place if we could get the Foreign Buyers and empty home tax in place - like the rest of the developed world.

by CJ099 | 7th Mar 17, 10:22pm 1488878576

Now at 10568 property listings for Auckland.

by RickStrauss | 8th Mar 17, 9:50am 1488919822

Interesting...10,611 this morning. Wonder how long till we hit 11k

by canon | 7th Mar 17, 4:56pm 1488858960

Listed privately (through HomeSell) in October last year for for $885k, no bites I'll assume

http://www.trademe.co.nz/1181347145

Today with an agency for auction with a price indication of $925k

http://www.realestate.co.nz/residential/search/prices_max/926000/prices…

If at first you don't succeed go to auction for 40k more to end up back at square one?

by NZ United | 7th Mar 17, 6:36pm 1488865000

Greg i have to ask who are the people that are buying these properties?......i mean 5 or 6 million dollars for what?......a old run down house in Remuera..........is it for sub division?....or to live in it?........any answers?

by RickStrauss | 7th Mar 17, 6:38pm 1488865123

Another bargain here that Tony Alexander might recommend: http://www.trademe.co.nz/property/residential-property-for-sale/auction…

Buy a 2 bedroom leaky apartment that you'll have to pay to remediate, for only $500,000! Bargain! What more could young Kiwis want?

by Kakapo | 7th Mar 17, 6:45pm 1488865528

Don't miss this insurance fraud opportunity!

Home and income for the right exotic fungus farmer!

by dictator | 7th Mar 17, 7:19pm 1488867583

Nothing quite like buying a place that you probably won't be able to live in for a year during remediation and have to pay an unknown amount to fix the hidden problems. A Tony Alexander job.

by Double-GZ | 7th Mar 17, 7:29pm 1488868182

My friend's mum has put their house in the market through Barfoot with the heading "OFTEN SOUGHT, RARELY FOUND TRADITONAL RESIDENCE IN DGZ" https://www.barfoot.co.nz/589879
How much do you reckon Zach? I am guessing between $3 and $3.5m.

by Zachary Smith | 7th Mar 17, 8:05pm 1488870352

Wow that makes my place look like a hovel. it is a pretty special place in a great location. Being a bit of a classic DIY Kiwi the thought of painting it is a bit terrifying. The nearly new roof is a big plus. I think it will exceed the homes.co.nz high price. I'm picking $3.8M.

by Double-GZ | 7th Mar 17, 8:21pm 1488871290

Wow hahaha I think around $3m due to high maintenance :-)

by Zachary Smith | 8th Mar 17, 6:25am 1488907500

I'm going to stick with my prediction for now. I might check out the open home on the weekend as you can't really tell from looking at pictures so may change my prediction. However the house across the road at #45 looks fairly similar although bigger with a similar sized section and sold for $4.1M in Nov2015 (Update: Hmm maybe not a good comparison checking closer as it seems to have a tennis court that extends onto another section with no value which is weird. Looking from EarthView it is amazing how many houses there have swimming pools. Often houses that haven't sold for many years like this one can have lower CV values than they should. Price will depend on buyer competition of course but I reckon if you were rich this would be a prime property and you wouldn't lose money, especially if secured for low $3M.

by Double-GZ | 8th Mar 17, 6:40pm 1488951659

Yes Zach go and have a look this weekend and say hi to the Armon family for me :-)
I will keep you posted with the selling price in due course :-)

by Bugger | 7th Mar 17, 9:55pm 1488876917

use this headline for top dollar "拆除，生成更多的房子" (demolish, build lots of houses).

by PocketAces | 7th Mar 17, 10:00pm 1488877236

Probably want to check this out first though http://www.stuff.co.nz/business/property/90127889/chinese-property-site…
Why is a Chinese property site apologizing to NZ, foreign buyers hardly figure in the housing market *splutter*

by Bugger | 7th Mar 17, 9:55pm 1488876929

use this headline for top dollar "拆除，生成更多的房子" (demolish, build lots of houses).

by Zachary Smith | 8th Mar 17, 5:59am 1488905989

I just read this in a Stuff article:

"We get more searches for sales histories in elite suburbs than any other, with Remuera being our most searched this year. There's clearly still strong interest despite the hefty price points."

It would be interesting to see a breakdown by country of origin for the searches. I object to the term elite though.

by Double-GZ | 8th Mar 17, 6:38pm 1488951514

Epsom / Remuera hand in hand together we are multi-billion dollar land :-P #GoodRhyme
One of my neighbours has finally put his property up in the market for sale. I am guessing it will go for over $6m? Have a look http://www.trademe.co.nz/property/residential-property-for-sale/auction…

by tothepoint - d… | 8th Mar 17, 2:16pm 1488935765

Trade me listing for Auckland reach 10,612 as at 7.30am today. That's a big (and growing) number for Auckland. 2017 has ushered in a fragile market.

The usual trend in Auckland has been an increase in selling volumes (listings), followed by a decrease in sales volumes and then, finally, declining prices.

I guess for a lot of owners/vendors, it makes sense to offload now than risk what could easily be quite sizeable falls in price over the next year (or two).

But buyers, there's a very good chance there will be a silver lining if you wait a little while......

by mvgsmf | 8th Mar 17, 10:06am 1488920777

Realenz Auckland listings now at 11849, up by 300 listings in the last 10 days.

North Shore where I watch - 1560 up from 1540 yesterday...going up on average by 30 listings a week.

Trademe North Shore listings have increased by 225 in the last month.

Fixed price makes up 625 listings and by negotiation is 500 - so 1125 of the 1560 not by auction so a big change from recent times.

Driving in mine and surrounding similar neighborhoods (middle of the road - hillcrest, glenfield and lower - birkdale, beachhaven there are for sale signs popping up everywhere)

Will be interesting to see who blinks first...

by RickStrauss | 8th Mar 17, 10:12am 1488921163

Seems both buyers and sellers are worried about interest rates going up soon, and are considering their ability to fund these large mortgages houses in Auckland currently require.

by lac | 8th Mar 17, 10:44am 1488923069

Would be much cheaper to send the kids to top private schools instead of paying these prices to be in DGZ lol. Insane.

by mvgsmf | 8th Mar 17, 11:02am 1488924148

@iac - agreed. I actually went to AGS and I wont be sending my own boys there - over-rated beyond belief.

by RickStrauss | 8th Mar 17, 11:50am 1488927015

I would assume most of a child's success comes down to the quality of parenting and having a few choice teachers in their school life. (Apart from those few companies who run entirely on the old boys network.)

by Averageman | 8th Mar 17, 12:23pm 1488929023

Agreed. The premium paid for DGZ is funny. Good schools but are they that good....Both schools are increasingly massively overloaded. For neighboring, but outside the zone property one has to pay a million or more for a like for like option. Just seems crazy, take 5% interest only on that million and how many kids can go to private school while doing something useful with the difference? Oh and its nice not to get raped on the rating bill either. #no brainer.

by Tui12 | 8th Mar 17, 12:20pm 1488928842

I went to AGS also. Not the school it used to be at all. Full of over under achieving rich kids, when I went we got selected from all over Auckland which meant a nice cross section of high achievers.

by mvgsmf | 8th Mar 17, 12:59pm 1488931144

I can but imagine how much its changed with the ummm "local demographic change" ? (Is that politically correct enough?)

When I went I was from a very modest income home, in very modest Mt Eden when it was a "working class" suburb and not full of trendy Volvo SUV driving nimby's living in renovated villas....or "brand" conscious recent arrivals where its all about how things "look" (Lexus or Merc, Rolex, Kids at correct school, etc)

Personally I believe the schools reputation itself is so overblown - great if you played rugby and wanted to be

A. An accountant
B. A lawyer

Otherwise it fostered zero creativity in any way. I truly hope its changed for the better in that sense.

It was no surprise that it had the highest drop out rate at Auckland Uni...once free of the heavily implemented constraints and force-feeding, many went crazy with the booze and chasing skirts...(not me of course :P )

Still - just one mans opinion on it.

Seeing the quality and breadth of education my kids get now on the North Shore in excellent public schools I see no need to change whatsoever

by RickStrauss | 8th Mar 17, 1:52pm 1488934359

Not to begrudge anyone chasing skirts, mind.

by Andrewj | 8th Mar 17, 1:57pm 1488934673

!989
http://dilbert.com/strip/1989-07-12