Strong competition at auction for top end Auckland apartments, leasehold units selling for under $150,000

The view from the balcony of the apartment that sold for $1,007,000.

There was a plenty to choose from at the main Auckland apartment auctions this week, but as has been the norm lately, results were very mixed.

City Sales had six apartments on offer, including a one bedroom unit in the landmark George Courts building on Karangahape Rd, a leasehold unit in the Lighter Quay complex at Viaduct Harbour, several others dotted around the CBD and one out at Mt Wellington.

Four of the apartments received multiple bids but the George Courts unit was the only one to sell under the hammer and the other five were passed in for sale by negotiation, two of them without receiving any bids.

At Barfoot & Thompson's main apartment auction this week, six apartments and two commercial units were offered (a seventh apartment scheduled to be auctioned was postponed), with three apartments selling under the hammer and three being passed in for sale by negotiation.

The mostly hotly contested property was a 98 square metre apartment in the art-deco Eden Hall building on Eden Crescent, just around the corner form the High Court.

It had its own single garage at street level and there were several keen bidders for it, and it sold for $960,000.

There was also good bidding on a unit in the popular Grand Chancellor building on Hobson St which sold for $633,000.

At Ray White City Apartments a bumper crop of nine apartments were on offer, with seven selling under the hammer and two being passed in for sale by negotiation.

Three of the apartments on offer were in leasehold buildings, with one selling for $112,000 and another for $135,000, the third being passed in with no bids.

There were also a couple of apartments under hotel lease in the Spencer on Byron building in Takapuna, both of which sold.

The hottest bidding was for a 116 square metre unit in the H47 building on Hobson St in the CBD.

It had two bedrooms, two bathrooms, two car parks, a balcony and harbour views and sold under the hammer for $1,007,000. 

The full results from all three auctions, with the prices of all properties that sold and details of those that didn't, are available on our Auction Results page.

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68 Comments

So if I read that right 11 sold out of a total of 21 at auction, about 50%, not bad, not great

Results from today's B&The auction room. 21 marketed 3 sold

That's pretty damning, mid march and 15 % success rate. The writing is on the wall

"Houses Overpriced" with your name it's hard to believe your comments are true & unbiaised

Yvil, agree, but did you not realise that Interest.co releases these stats, just a week later... I couldn't wait a week :)

give me you email address and I can send you the photo I took from their screen..

Around 8 sold out of 22 in chch yesterday.

Wednesday this week at B&T auctions for the Bays area:
8 out of 25 sold under hammer = 32% success.
Not good for March - and this is also the upper end of the market which is 'supposedly' holding strong....

TradeMe's Auckland's property listings still climbing now at 10781. That's around 800 more listing then there were only a few weeks ago.

I keep a note of the number of listings of houses, apartments and townhouses on Trade Me,. The number of listings has increased 105 in the past 2 days!! What does this mean?
That's in the greater Auckland area, by the way.

Well it was the Auckland local Investors that pushed up the outer Auckland area's prices when the Investor LVR restrictions came in to effect in 2015. So I think they're selling up as we also know that any future Government will need to further curtail property investors. I only hope that they recognise Foreign Investors in that equation.

Very good - thanks for that CJ.

And I agree with your response to 'the Boy', as you call him, further down the page. I have children who are wanting/needing to buy in Auckland for employment reasons (both gainfully employed) and I too advise them to WAIT. So that's the reason I track certain property types; nothing to do jealousy or envy but just to see what the market is doing. I suppose you could say I am being productive on their behalf..!

Thanks Zorba, I do think that the current situation particularly with the unaffordability of Auckland property is very damaging to NZ economy for everyone.

Another sign of National party success. Rents have hit another record high. What a failure

Where is Ted to spout forth that plane loads of foreign investors are right now landing at Auckland Airport, to jump into a Japanese import mini bus and endlessly drive round neighbourhoods and snap up properties without even going inside them !!

I am really interested in the press releases aka "advertorials" that the RE agents will write for the coming March figures ...what "spin" will they put on it this time ...... just a "mere blip" springs to mind.....gotta keep the "greater fool" ponzi scheme going ....

Yes I'm sure there's still a number of RE's who will claim seasonal adjusted figures and how property prices will pick up in the Winter months with the lovely smell of damp mold in the leaky homes.

Yes but Ted made me laugh when he did it. I think its because he always seem to take his alternative facts too far.

What bunch of nasty people some of you are.
Forget about your jealousy and get out and about and be productive.
The Reserve Bank has altered things nothing to do with demand at all.

@ The Boy; We are being productive in tracking the downward trend of the market and making sure that FTB's get a 'fair deal'!

Message to all First Time Buyers; WAIT for the market to bottom out! Give it a few more months at least until prices become affordable and don't get ripped off at an auction.
If fact avoid property auctions at all costs as they are very much geared in the favor of the RE's to squeeze every penny out of you. :)

CJ, when do you know the market in Auckland is at the bottom?
What median price is going to be the bottom and affordable for firdt home buyers then?
Would also suggest that you can often get bargains at auctions maybe not in Auckland at the moment!

I can be difficult to tell when the market has bottomed out. But with the increased number of property listing far exceeding the number of sales = very much a Buyers market at the moment. The old supply and demand.

Based off average salary for Auckland which is realistically around $65k if you consider a couple with children (Where one partner will probably be working part-time). So house hold income will be around $97 to $100 before tax. If they have a $50k deposit then they can probably borrow around $400 to $500k. Though this greatly depends on many factors including the number of children.

Humm... bargains; I'd be very weary of Leaky Home sales, Morgagee and Ex-rental properties. Make sure you get a builders and a substance report to check for 'P' lab exposure (Substance report especially for ex-rentals).

CJ, going by your figures there are going to be a lot of first home buyers on the sidelines for along time, or they will be buying in South Auckland.
Regarding auction bargains, I am not talking Auckland, and as for ex rentals with P, never been a problem for me so far, but haven't really bought ex rentals, as rental returns for most owners in Christchurch are positively geared!

keep pumping it, but you won't convince me it aint all over. Clear any debt, batton down the hatches, spread whatever you have far and wide............then sit and hope. The head winds are building by the day. More fool are you if you don't caste an eye...

Beer time. Have a good one.

Typically the best time to buy is 4 years post the previous peak. So if the top was Oct 2016, unless purchasing in a forced sale scenario, history would say hold fire until 2020. Rent a nice place in a great location, increase your savings and enjoy life. If you have to move for a new job opportunity give the landlord notice, better than trying to sell in a flat market.

Brilliant. I'll keep working and saving $100 a week and paying stupidly high rents and in 15 years I might have enough for a house deposit. A property investor with multiple properties tells renters and prospective FHBs to be productive. The irony and cluelessness is unreal.

Oh dear...Fletchers...Christchurch is it?

Shhhh all you nasty people are going to make the housing market crash. Just hold your nose and buy even if you have to use all of your savings and extra from mum n dad for a deposit. The mortgage will only be 50% of your take home pay and don't even worry about interest rates rising either. After all housing never drops according to my bank manager.

Your sarcasm would be funny if using all your savings and mooching off your parents wasn't the only way to buy a house :(

Agreed! To paraphrase John Oliver referring to trump, -the more real consequences become the less funny it all gets.

Where's DGZ & Zach to comment on this? Not exactly on the outer rim of Auckland anymore.
http://www.realestate.co.nz/2949065

Nice how they tell us the income and the asking price so we can determine how great this deal is. Might pass on this one.

"your next astute move". HAHAHAHAHA how dumb and manipulable do these turkeys think people are?

$5,062 per m2.

I'm here I'm here, but not sure where Zach is... It's been a really busy week at work and I have been well & truly swamped this past week. I'm really just here to report on a couple of sales in the last couple of days on the properties that I have been viewing at the open homes.

1) 6 Lee Street, Parnell sold for $2.475m under the hammer (70% over CV).
Note that the land is only around 300sqm, house around 150sqm. https://www.barfoot.co.nz/589397

2) 30 Norana Avenue, Remuera sold unconditionally this week for around $3.2m (60% over CV).
http://www.remuerarealestateregister.co.nz/catalog/product/1178

Both in DGZ ;-) Zach, please give us your insight on the sales.

Also, the above property you mentioned (134 Manukau Road Epsom) is on a really busy street but it comes with the consent to demolish so it will push the price up. It has a CV of $1.5m and in DGZ. I am guessing it will go for around $2.25m instead of the asking price of $2.8m.

Phew, just got back from a twelve hour, hard slog day. We JAFAs work like Trojans. I'll check out the properties and edit this comment.
I too think the Manukau Road property seems highly priced although it is commercial I guess so out of the area of our expertise. Dropping the price 250K from an unreasonably high asking price doesn't mean anything.

Notice DGZ and ZS are always both absent at the same time ?

Anyone remember Kimy AKA ZaneyZane from a couple of years back

He's now over on croakingcassandra.com harassing Michael Reddell - nickname GetGreatStuff

I got me mum and dad as guarantors when i took out a 500k mortgage to buy a house in Weymouth. Am i doomed?

You won't be.......but guess who might be instead?

you are fine but they might have a nasty surprise if you cant keep up with the payments.

So who dares to make a punt at predictions?

For instance;

Where will be hit hardest if the market does tank? Auckland, Outer Auckland, Christchurch, Wellington?

Will the market just soften and stall or will there be a real drop?

Are there any bulls out there who thinks the boom has longer to go?

Anyone with skin in the game who has actually taken action based on the current information either way?

My bet is an over all -20% if the markets reduction continues at the pace it's currently headed in. Possibly for Auckland too, though that entirely depends on how much damage Trump inflicts on China through trade tariffs.

I'm still not convinced that its only local Investors that are responsibly for Auckland's massive property price increases in recent years. If it was Local Property Investors then this sudden sales and price decline would have happened back in 2015 when the 40% LVR restrictions were introduced for Local Investors.

Strange how it's suddenly happened in the last few months, since late 2016 when Trump started to threaten China with hefty trade tariffs causing them to enforce their Capital Flight restrictions as much as possible on their people.

Most of Auckland's foreign property Investors (Non Resident Investors) have flown the coop, so not surprising that Auckland's property market is now declining.

If anyone else can offer a better logical explanation as to why the market is declining, then I’d love to hear it. :)

The LVR in 2015 was 30%. I think the slow down has more to do with the banks than anything else - they are being very cautious how much they will lend and to whom.

I think there are a combination of headwinds creating a perfect storm.

Banks tightening, foreign investment caps, global uncertainty, LVR restrictions. I think psychology is another factor. Simply put, the longer the boom goes on, the more people start to worry about the bubble popping. The fact that the housing inflation is causing inequality and socioeconomic problems for future generations is a common discussion, the words "BOOM" and "HOUSING CRISIS" are constantly in the media. And it should be. But it raises fear. Fear and panic kill markets.

Outer Auckland will be hit hardest, then Auckland, followed by Christchurch. Wellington should fare best, highest average wage in the country, and likely to be more positions in the public service post election. Pet projects of coalition partners, and if a Labour government the public service sector will expand significantly.

I have sold 50% of portfolio, predominantly the Kapiti Coast north of Wellington, as still want to have a position in the property market. I would anticipate a 20% fall in the Auckland median, 10% off the national median. Probable 10% fall for the Wellington region. From experience double the decline in the median price and this is the discount you can expect in a forced sale situation in a stagnant market.

Yep agreed on all of that. I'm also picking 20% drop in Auckland median. Central Auckland probably won't drop much, but there will be some big drops south and west

50% drop from peak by this time next year, Banks bail in depositors. National blames Trump...

No, the fact is that Auckland prices could easily still creep up 5-10% this year and next year because of the intensity of the population growth. The demand definitely still sits there. People still want to buy.

Want and able are two different things.

Unless there is manic panic doom house selling, I think it's possible certain types of house in Auckland, in certain locations might still increase in value.

Agree
But overall, there will be a significant fall
In fact, there has already been a significant fall of 8%

I have noticed, DGZ also gives two examples above, that some houses, usually nicely presented ones in the prime areas, are selling for way above the homes.co.nz high prediction.
My feeling is that there will be quite a bit of developing of old houses and rebuilds in these areas. Epsom, Remuera, Parnell etc will continue to edge up in price.

Thanks Zach, you speak my mind. That's exactly what I have been thinking :-)
I'm quietly excited about the following DGZ listings around my neck of wood, and here are my thoughts:

1) 43 Orakei Rd (https://www.barfoot.co.nz/589879) - A classic arts & crafts masterpiece and will be sold at auction or within 48 hours after auction!
2) 33 Benson Rd (http://www.uprealestate.co.nz/UPR14173) - Can't see this in the market for long coz it screams high-end & quality!
3) 24 Komaru St (https://www.barfoot.co.nz/591910) - A family heaven and this location is hard to beat, close to everything and will be snapped up!
4) 16 Combes Rd (https://www.bayleys.co.nz/Listing/Auckland/Auckland/Remuera/1751084) - Will be a very popular purchase considering the premium location and land size!
5) 42 Bassett Rd (https://www.bayleys.co.nz/Listing/Auckland/Auckland/Remuera/1751085) - Who doesn't know Bassett Rd? This will be gone in no time!

Will report on their progress on in the next month or so ;-)

Is it the machine gun murder house? If not, who cares?

yeah exactly. Who cares.

DGZ and I are looking at where you could possibly continue to make money in the current market conditions. I know a lot of readers think this is morally wrong but this website is supposed to be focused on financial decisions rather than social activism. The advertisers, you know the people that fund this site, appear to be mostly property related.

Zach is right, yet again!
Every listing and every sale in the Auckland property market will have a direct influence on the property trend that we are seeing week in week out. The examples I have given above are highly relevant and will accurately reflect what is happening out there in the real world, not just all the social activism talk we are seeing here online.

Trade Me. Auckland listings. Now 10807. Fear is a terrible thing. Fear that your paper capital gain is dwindling.

I feel strangely calm. I don't think people particularly fear losing some capital gain - there are a lot worse things to fear, it's more of a two steps forwards one step back sort of thing. I was thinking of selling one property but the tenant's contract in Auckland has been extended and I don't want to disrupt their life. Two thirds of my mortgages have been renewed and I am now almost a grand a month better off. I also have this feeling that some properties are going to keep edging up.

I am also amazingly calm. We are here for the long haul and we all know there is only one direction it will go in the long run and that is UP. The increase in listings only means that there are more free open homes to attend in the weekend and more choices for buyers. It is a good balance in the market in my opinion, both vendors and buyers appear happy with the current climate. This is a good thing and we should all be grateful!

Let's just wait and see what happens

Zach why would you think of selling one other than you felt things were changing and you wanted to lock n some capital gain. Or should I say DGZ or whoever you are.

Gordon, sorry for the late reply but I fell asleep at my keyboard due to exhaustion. I have generally run fairly negatively geared with about a third of my wife's salary going to pay the mortgage. I thought if I sold one property I would be positively geared. I must have read too many THE MAN 2 comments and was impressed with his advocacy of positive gearing. Now with lower interest rates I am practically neutrally geared for the time being. I was also thinking that it would be good to diversify a bit, maybe after reading your comments. You see I do read people's comments and think about them.

Thanks DGZ. Good to see you are thinking about diversifying.

Please don't get me mixed up with Zachary. I am not him. He lives in Epsom and I live in Remuera, although both in DGZ. I also think he is a boomer and I am a Gen-X. Thank you gordon.

Pull the other leg Zach. We have all had our suspicions for some time that you are one and the same person and probably don't even own a house in Auckland.

I think Zac and DMZ are a punch and judy show and very successful, but who is the puppeteer?
The aim clearly is to talk up the auckland property market.

Fact or Fiction...Funny Munny...No Joke. Seriously Folks....whatever next?.

Zackly The Man must be king...or the Emperor has no clothes?

Leverage has two direct possibilities. What a joke?.

Have fun..reading this Friday?.

http://www.zerohedge.com/news/2017-03-16/what%E2%80%99s-next-global-real...

It does look like we're going to hit recession...

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