Cute two bedroom character cottage sells for $320,000 but it wasn't in Auckland

This two bedroom cottage at Clive in the Hawke's Bay sold for $320,000.

Bayleys Real Estate marketed 53 residential properties for sale by auction in Auckland, the Bay of Plenty and Hastings over the last week and achieved sales on 24 of them, giving an overall sales clearance rate of 45%.

A character two bedroom cottage in the small Hawke's Bay town of Clive sold for $320,000, a price that would make Aucklanders weep. Prices in the City of Sales itself ranged from $615,000 for a three bedroom house with a separate garage on a 607 square metre section in Manurewa, to $3.605 million for a 4-5 bedroom villa in Devonport.

At the Bay of Plenty auction prices started at $510,000 for a three bedroom house at Papamoa, and went up to $2.5 million for a lifestyle block in two titles at Pongakawa.

Details and photos of the properties auctioned, and the prices of those that sold, are available on our Residential Auction Results page.

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89 Comments

Devonport consistently gets really good prices. A villa in Devonport is likely to exceed current RV by a considerable amount. The one in the article got 780k above RV although has had a very good and expensive, I imagine, renovation job done on it.

Clearance rate of 45%. Things could be warming up. If vendors are 'meeting the market' then buyers may have to act quickly.

Greg are the statistics that come in from the agencies only for houses that sold at the actual auction or do they cover the two days afterwards as well?

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A clearance rate of 45% is taken as evidence that “things could be warming up.....buyers may have to act quickly”

I think we have the winner of the “Alice in Wonderland” quote of the year. I expect that one will take some beating.

"you see, so many out-of-the-way things had happened lately, that Alice had begun to think that very few things indeed were really impossible"

Bobster, don't forget the 20-25% that sell just after the auction. That makes for a clearance rate of close to 70%.

Alas it is you that is living in Wonderland.
TTP and I are grounded firmly in reality. We invite all comers to do battle with our searing logic and fact based arguments. Good luck!

If I remember correctly, the quoted rates are now including the 24 hours post auction, while when the market was hot and achieving 80-90% sales rates, the stats were purely for properties sold at the auction itself.

Anyone suggesting that the reported stat was changed to massage the numbers would of course be being unreasonably skeptical.

edit: I can't find Bayley's definition, but Barfoots currently define 'sold at auction' as

"The property was sold under the hammer on auction day, or by 5pm the next working day."

I think we can safely assume that a significant proportion of properties that went to auction will be sold within the following week. Could be as much as 25%? I think this would be useful information for those contemplating selling by auction. 45% is deemed to be dreadful but is it if another 20% or so are sold soon after. I base this on my one analysis of a list of properties that Barfoots auctioned at the end of February. They now have "sold" stickers which would imply that they are more than just under contract.

Anyway I will continue to research this. From what I know so far I would say it is certainly still not a bad idea to go to auction if you are thinking of selling in Auckland. I think with Barfoots there is no auction fee so it is a good deal and strategy.

And assumptions are the mother of all f**kups. This from someone who last week used what can only be described as dodgy logic to try and claim that 20% of housing stock is sold each year when in reality it is only a quarter to a third of that i.e. 5-6%. Your estimates are based on wild arse guesses which on further investigation don't add up.

And here I was thinking n=1 was satisfactory to prove a 'fact'

If we assume it's as much as 55%, then all of the houses going to auction will sell, fantastic! What we're lacking here is any data to support your claims. It would need to be a fairly chunky selection of data showing sale rates in the week post auction vs sale rates of similar properties at similar stages of their campaign not sold through auction, and even that could be argued with.

Until we have that, the raw auction numbers are the best guess we have, and the numbers are still ~1/2 of what was being knocked out when the market was pumping.

dreamer. as working in the industry, 70% sale rate is a lie.

Excellent marshal. So if around 40% sell at the auction what percentage have sold, say, ten days later? Is it around 60%? I was just going on my analysis of one Shortland St sale of thirty properties that had this result. I am going to see if I can do this check for a few more.

Hi Bobster,

Well, I suppose if one is to be objective, then a 46% (or higher) clearance rate beats a 45% clearance rate.

But, of course, if one is a DGM (Doom and Gloom Merchant) then a 0% clearance rate is the ultimate measure of success - however warped this may seem to normal people.

TTP

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And right on queue, the Mad Hatter speaks....

“Mad Hatter: Have I gone mad?
[Alice checks Hatter's temperature]
Alice Kingsley: I'm afraid so. You're entirely bonkers. But I'll tell you a secret. All the best people are.”

And you can be assured that many here regard you as among the very best of people. Chapeau, sir!

"an empty head is not really empty; it is stuffed with rubbish. Hence the difficulty of forcing anything into an empty head" Eric Hoffer

Cue not queue.

You are one sad pathetic person, that just gets worse by the day

May you be a better person in your next life

Classic gas-lighting. Don't fall for it TTP.

As the rules of Pavlovian conditioning dictate, one rings the bell and TTP starts salivating on the keyboard....

Bobster and Retired-Poppy are a couple of DGM's if ever there were....... (-;

TTP (the observant)

Please don’t go up!! me waiting for price to come back so I can pick up some bargains to add to my portfolio!!!

Hi Small Kev,

That's exactly the position of many of the DGMs who hang around here...... except that they're not as explicit and straightforward as you are in your post above.

Thanks for being honest.

TTP

It was exactly your position a while ago when you were still doing your 'if only I could afford a house in remuera but they'll never drop' schtick. Your old routine was more entertaining than your current stuck record.

That's complete rubbish, mfd.

I've never aspired to a property in Remuera. If you think I have, then produce the evidence. There is none.

TTP

My mistake, you weren't that fussy.

"If house prices in Auckland were to drop markedly, then people like me might be able to enter the market and purchase - but that's wishful thinking......."

https://www.interest.co.nz/property/88518/new-reserve-bank-figures-show-...

"Alas, my chances of buying that idyllic Ponsonby villa at a sharply discounted price seem to be sailing away from me. What a disappointment!"

https://www.interest.co.nz/opinion/88483/election-more-any-others-recent...

"Hypothetically, if there was a crash, I'd be happy because I could go out and buy a "cheap" house (or two). Privately, I'd be better off! But I'm not fooling myself that a crash is going to happen. It ain't."

https://www.interest.co.nz/property/88264/harcourts-says-house-prices-we...

TTP has his heart set on Freemans Bay and Ponsonby, not Remuera, not DZG :-)

TTP, you're going to have to get used to sharing threads with those with opposing views to your REA mission. With all due respect - suck it in.

Like other caring parents, I wish for nothing more than have my kids housed affordably. Right now, houses are not affordable and risks are skewed heavily towards price erosion particularly in Auckland's lower quartile.

TTP, it is you that is the pessimistic one. It's tough for FHB to read comments that house prices will remain out of reach, knowing its the greedy speculators that caused this. What hope and encouragement do your comments provide those wanting to enter the market for the first time? "nada" There is simply no insight or thought provoking information in your comments, just antagonistic overtures straight out the gate on fresh threads!

Personally, I have no desire to invest further in property as I honestly couldn't be bothered with the hassle. I am comfortable financially as from day one I worked and saved hard and borrowed nil. I genuinely believe houses should be for living in, not speculating on. Life is fine the way it is - uncomplicated

TTP, so far you have labeled my posts as; unpatriotic, pessimistic, opportunistic, gloomy, deceitful, misleading, hypocritical, hiding an agenda, duplicitous, wishing a crash and dangerous.

From a FHB perspective, "DGM's" comments offer fact based hope there is an end to this prolonged period of greed, making way for more affordable first home ownership.

It's high time you looked in the mirror.

Hi Retired-Poppy,

As was revealed in a thread last week, you are duplicitous in terms of what you say and what you have actually been doing. You inadvertently blew your cover.

Anyone here can go back and check for themselves. See the thread entitled, "Barfoot and Thompson's average price eased back in February and is now lower than it was 12 months ago" in which R-P shot himself in the foot.

R-P, your hypocrisy knows no limits.

TTP

TTP, ooops, I forgot the "duplicitous" and "hypocritical" labels so I added them as well ;-)

Have I missed any?

What hope and encouragement do your comments provide those wanting to enter the market for the first time?

Appeal to emotion = fail.

In my younger renting days, I got similar vibes from Landlords. I found they lacked empathy for those trying to get ahead and proved to be self entitled leeches to be perfectly honest.

Empathy.....haha thats not in the darklord operating manual....its all about the $$$$$

And that's the challenge we face - this capitalist/neoliberal system has allowed some to forget about the people factor and the benefits of cooperating as a society....at the moment everyone see the next person as a competitor for $$ and resources, as opposed to their neighbour or fellow human......the FOMO culture is dangerous....

Can I just clarify something please RP? You are in a position to buy an investment property mortgage free but cannot be bothered because only leeches rent out homes and units to others and you are better than a leech?

Houseworks, whoa, a loaded question that you obviously spent considerable time and effort - well done!

Trees are tirelessly producing oxygen so you can breath - be thankful for what you have instead of lusting. For the one trick ponies like yourself, the days of easy gains are over so, be kind to your Hamilton tenant because soon you're going to need him/her way more than they need you.

Enjoy your week down in the Tron!

I spend up to half my time in orkland too. Rp If you are a golfer I challenge you to a round or two

Hi mfd,

Thanks for owning up to your error. Sincerely, that's really decent of you.

As for Ponsonby - yes! - I'd love to purchase a villa in Ponsonby, as I've reiterated many, many times on this forum.

But, alas, as I've also stressed, I see no prospect of ever being able to afford one. And, unlike the DGM brigade, I have never tried to "talk house prices down" to fulfil a private/personal wish........ Just as you quote me above, "I'm not fooling myself that a crash is going to happen. It ain't."

My position has been consistent to this day.

TTP

I wouldn't say entirely consistent. Normally you're railing against the 'doom and gloom merchants', today you're stating that your position is exactly the same as theirs. Your previous posts were virtually identical to Small Kev's, which you claim is exactly the position of the 'DGMs'.

29 Boyce Avenue Mt Roskill
$1.05 CV sold for $750k, so a mere $300,000 below CV.
Sold to a speculator because three days later is showed on trademe up for rent for $650 pw.

Good to see an investor got a bargain!

So you wouldn't rather see a FHB get a bargain?

FHB's are meant to be rent slaves to investors - didn't you know?

Not really a bargain. A fair price. Can you tell me why?

300k below Cv sounds like a bargain to me Zachary.

DGZ, do you give up?

Never give up. Why do you say that? I actually think the property is worth much more than 750k, much closer to the CV.

Give up on finding out why 750k is a fair price I mean. Double pylons almost going overhead toward a sub station. Look closely at satellite view and you can see pairs of pylons. You can't see the wires but if you place a ruler between the sets of pylons they come pretty close to the property.

Retired poppy could have pounced on that for affordable accommodation for his offspring!

4.5% return before vacancy, maintenance, insurance, rates, management fees (if any) is a bargain these days? You guys should see the yields available in different asset classes and locations, you'll be stunned.

With that particular property you get the impression the CV was much higher than it should be...

Shock, how on earth do you claim the buyer as a “speculator”?
The buyer has bought it to rent out and provide shelter to people who want or need to rent!
A speculator would have it on TradeMe for sale.

Just had a look online and 750k would appear to be pretty good money for it as it is pretty average at best.
Don’t know the Auckland market butmI would say the buyer has bought it for the land rather than the house as it is a box.

1. the property was already tenanted, if they had bought the place simply to provide someone shelter they wouldn't be kicking the current tenant out to increase the rent.
2. for 4.5% gross yield that's less return than they would get from a term deposit or other investment, therefore they are relying on capital gains in the future.

According to the advert the vendor had downsized, already bought and was close to retirement. It didn't say anything about tenants as far as I could see.

Anyway does anyone know why it sold so far below RV?

I know why.

My guesses would be the power lines overhead or significant P contamination.

The overhead power-lines would knock something off the RV but I doubt that much.

It's more than overhead wires unfortunately. These are two rows of pylons with wires above 27 and 25. It's close enough to knock 20-30% off the price. Pro tip for FHBs.

The fact that the property got 750k is testament to the robustness of the Auckland market. In bad times these properties wont move at all and continuing to rent them out would make more financial sense than selling at a loss.
It's interesting as I analyzed this price awhile ago and thought I had spotted a significant sale heralding the softening of the market. It turns out that the message is the opposite. I did mention it in my "report". The other property I spied that I thought was a bargain turned out to be a mistake.

Directly underneath maybe, but this is off to one side. I'd be more concerned about the lack of fencing.

From the Trademe add, "Please note I've had to move the availability date to May as the existing tenant can't move until this time."

So something doesn't add up. It seems to me that either the REA, the vendor, or the buyer were telling porkies...

https://www.trademe.co.nz/property/residential-property-to-rent/auction-...

Please enlighten us ZS

Good spotting Shock. They probably weren't telling porkies, just kind of not telling the whole story. Vendor may not have lived on the property although for a rental the pictures show it to be very tidy.
$650 a week rent seems a lot although interestingly that figure would sort of make the place close to neutral. If you borrowed 750k it would cost about $620 a week in interest.

And how much would you expect the insurance, rates and maintenance to be?

I would expect the rent to cover the mortgage interest, rates and basic maintenance. However I would expect to have about 150k in equity so a mortgage of 600k.

It’s reassuring to come across property investors who are honest enough to not pretend they are in it for the rental “yield”

This lil beauty thrilled the new owners hearts. A true love story...
101 Burnley Terrace, multi offer, sold for $1,590,000 (CV $1,650,000).
https://www.barfoot.co.nz/606519

Another utterly disingenuous Barfoot ad, suggesting a $1.6m home is to use their words, "A perfect first home...." How many first home buyers have that sort of cash?!

Double-GZ, if you think that 750k is a bargain then Christ I can see what the property bears are going on about.
Would people actually pay 650 per week to rent that box?
I buy very well in Christchurch but even if I was investing in Auckland I wouldn’t even contemplate paying that sort of money for a small box as a rental as the return is just not there and the home is pretty crappy.
I can buy property in Chch that gives us a return and upside far in excess of costs and they are permanent material in good areas.
Never purchased a negatively geared property ever and won’t in the future.
Money is made when you buy and not waiting for capital gain.
That sort of money would buy someone a new house well over double the size of that box in a new area 10 minutes to the newly being built cbd or a luxury apartment in town

TM2 750k is unheard of where I live, especially in northern slope Remuera. Put that house and land size anywhere on and around Vicky Ave it would fetch $2M+. Hence when I see prices like that I can't stop shaking my head in disbelief.

Have you ever been to Mt Roskill? It's significantly less nice than Remuera... A mate that lives there has to keep painting his fence black because it gets tagged quite frequently.

I have not been to Mt Roskill but I presume there is a mountain? Is it more than 5km from the CBD? OMG I'm starting to sound like Mike Hosking LOL!

Mt Roskill is convenient - it's a straight shot down Dominion Road to the CBD, and it's easy to head, south or west on the motorway and also very easy to get to the airport. A lot of older houses and more than a few old state houses, but the general location in terms of greater Auckland is pretty convenient.

Hi Shock,

With the cost of paint these days that must be expensive......

TTP

In Hamilton where I am it would be in the 400s possibly slightly more. Really it's only Auckland that has "unaffordable" real estate for fhb. I don't mind to have cheaper property prices in Hamilton compared to Auckland if it means we don't have their traffic issues.

Very true - I came across a young couple who bought a house and moved to Hamilton and they are on less than average wage.

A young couple will find a palace in Palmerston North for $400,000+

Entry-level for a livable first house is about $230,000. And it will have flat land, drive-on, excellent sun and be in tidy condition.

Palmy North is one of the best kept secrets in NZ real estate - see you there!

TTP

Really? I used to live there on Ferguson Street Terrace End. Back then the only exciting thing to do for Palmy people was hanging around Kmart (The Plaza) on their PJs,
I had an overnight stay in September last year and things haven't changed much!

We looked at Palmy before we bought, but chose Masterton instead. Makes for a small mortgage, particularly when you factor in what would be a 20% deposit in the main centres becomes 30-40%.

But you have to live in Hamilton. No different to Palmy or Christchurch. People live in Auckland for good reasons.

Hi gordon, refer first half of comment below from TM2 for my response

Personally, don’t know why Auckland is so popular with immigrants?
Been to Auckland a few times and yes there are things to do, like concerts, sport etc. but wouldn’t put up with the traffic, rain, house prices and crime for anything, but each to their own.
Seriously, if you want affordable quality lifestyle with plenty of work if you want it then Christchurch is your destination you should seriously consider.
Travelled fairly extensively and Wouldn’t swap living in Chch for anywhere else that I have been

Houseworks The Boy thinks Christchurch is superior to Auckland. Over a million Aucklanders think otherwise. Remember all his silly comments particularly the one about Jacinda’s pregnancy. I was in Auckland last weekend. Brilliant weather, brilliant harbour, brilliant activities including a day trip to Waiheke.

Gordon, everyone has their thoughts on things.
Haven’t lived in Auckland but from time spent there, I would never live there with all of its problems.
You can love it and it is your perogative!
All I know is that most on this site complain about Auckland being overpriced etc. so that is hardly a recommendation that Auckland is better than Chch Gordon, is it?
Do we have people on here complaining about Chch, don’t think so Gordon!
The fact that our national game rugby, has the best players wanting and playing in Christchurch tends to suggest that Chch has so much more going for it than Auckland with its pathetic rugby team for many years.

The Boy You cannot dispute the difference in population figures between your small town and Auckland. If your small town was so great it would have more people living in it than Auckland . Answer this question honestly if you can. why do so many live in Auckland if it is so bad?. I note the Hurricanes won last night. Your boys were pretty average.

Gordon, I appreciate “The Boy” title, it does make me feel so much younger!

Of course Auckland population is a helluva lot bigger, and I am pleased that it is, as we don’t have the same problems that Auckland has, and it provides us with a far better income from property and lifestyle.

We are noticing a lot more Born and bred Aucklanders now moving to Chch and when we ask them why, we always get the same answers.

Who are the immigrants that are coming from overseas Gordon?
Walk around the CBD up there and you can answer that.

Yes the Hurricanes were better than the Crusaders .
Last night, but to be fair Canterbury did have half of their starting fifteen not playing and they will win the final without doubt!

So you are a racist also The Boy. I am not surprised. Why are the immigrants not going to Christchurch? Why is Auckland five times bigger? Why are your average property values number 17 in New Zealand , not three as they should be? Why are your property values going backwards? Why are you number 15 (at the bottom) in the current ANZ regional growth figures? Where else are there as is where is Properties? Do you actually have anything going for you other than cheap house prices which are getting cheaper by the day? No wonder no one wants s to live there and so many have left. Don’t get me on your article winter conditions!

Gordon, bit of a rant there.
Having a bad day Gordon?
Not fascist at all, it was you who judged that not I!
Prices not declining at all Gordon from what I can see.
Stable as which is the ideal Gordon!
Anyway, must go watch TV as my rents continue to come in.

You never answer any serious questions as you cannot. My main question is. Why would so many chose to live in Auckland and so few chose to live in your town? If Auckland is so bad and your sorry old town is so good why do 1.5 million not live in Christchurch? You cannot answer that question.

Auckland in general is a very average place to live. I frequent it many times a year due to family and work but I’d never ever want to live there again. I grew up in Epsom went to Grammar and Auckland Uni then moved away from AKL to bigger and better things. I don’t know why people of my generation are bothering with it seriously it’s dull af, you have to drive everywhere, it has has a Silicon Valley cost of living yet with pathetic salaries and 9 months of shite weather. I would not live there ever again if you paid me.

Thank goodness Tui12. We don't need you. Good bye!

It’s ok DGZ you will get a dozen Indians and Chinese for every one of me who has left AK. Enjoy it!

OMG so sad that you are playing the race card. We are all human beings, regardless of race and ethnicity.

Race card? You are very confused as usual DGZ. I'm playing the fact card not the race card and also wished you well :)

Tui12, your opinion is noted......but it's great that not everyone thinks like you. Your comment reminds me of one who is disgruntled and frustrated? Potentially one who will find excuses at every turn to restrict expanding his/her mind. Auckland actually is a great place to live (just my personal opinion as well), depending how you think. If you enjoy the outdoors and prefer no noise, no traffic and no cost then outside of Auckland in NZ may be better or somewhere else perhaps. But not everyone wants that lifestyle. Have you travelled overseas and seen the sites? Good and bad! Auckland and New Zealand is very desirable whether it is affordable or not in many peoples eyes. With this unfortunately comes a price tag, as something becomes more desired the price tag goes up. If you have travelled to 1st, 2nd, 3rd world countries you may have a broader education on how the other half live and in turn may have appreciation for what you actually have here, whether it costs money or not or whether you have enough money or not. Take Cape town for instance (have you been there?) Water shortages and policies to take and steal land at will by the Govt, farm murders amongst general crime and daily murders, REAL poverty (have you been to Africa?) in some areas and it's ment to be a "developed city". There seems to be a lot of whinging going on about things that aren't that bad in Auckland and New Zealand as a whole. It makes me laugh when we get too excited about the most trivial of topics! The world is forever changing, get up with the play and stop living in the past!

What an utter waste of space so many of these comments are. Where on prefers to live is a personal thing. And Gordon you are onl;y giving The Man a platform for his propaganda. Just ignore his and his cohorts posts as most of us do.