Fewer to choose from at the latest apartment auctions and although buyers were prepared to bid they were being cautious on price

The interior of the apartment in the Spencer on Byron that sold for $460,000.

There was a smaller selection on offer at this week's main Auckland apartment auctions and although there were bids on all of the properties offered, buyers were being cautious on price.

It was also perhaps significant that all of the properties offered this week were better quality units that could have appealed to owner-occupiers, as well as investors.

At Barfoot & Thompson's main apartment auction two units were on offer, the first a two bedroom unit in The Metropolis building which had east facing views over Albert Park, and the second was a spacious two bedroom, 2 bathroom penthouse with a car park in the Summit building on the corner of Symonds St and Karangahape Rd.

There were multiple bidders for the Metropolis unit but it was passed in with a top bid of $510,000, and just a single bidder for the Summit unit, which was passed in at $850,000.

Ray White City Apartments also had two units on offer at their regular auction this week, a one bedroom unit in the Spencer on Byron building at Takapuna, and 116 square metre unit with three bedrooms, two bathrooms and a car park in the Sugartree Centro complex on the Nelson St ridge.

The were multiple bidders for both properties and the Spencer on Byron unit sold under the hammer for $460,000, while the Sugartree unit was passed in at $900,000.

Details of the apartments from both auctions and of many other auctioned properties from around the country are available on our Residential Auction Results page.

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33 Comments

There are a lot of apartments for sale at eye watering high asking prices in the Vinegar Lane developement in Ponsonby!

so 25% success rate?

up
10

13,839 Auckland listings on realestate.co.nz. A still growing overhang of unaffordable listings. Buyer activity not matching this.....

$510,000 top bid on a two bedroom in Metropolis? Ouch.

Sugar Tree 116 square metres passed in at $900k...well, that is an awful lot of money for an average medium size apartment, really. I have a friend who bought there and is a bit disappointed with the quality - not even a flat bathroom floor.

Try $1.125 Million for 74 m2 in Vinegar Ln, Ponsonby

https://www.trademe.co.nz/property/residential-property-for-sale/auction...

A mere $15'200/m2

Jesus. Those buildings look terrible.

No, you are just "architecturally and asthetically impoverished" to quote the guy that thought they should ban apartments smaller than 120m2. ;)

They call that lifestyle

Ponsonby the new Manhattan, huh.

Not quite, Manhattan apartments are in the millions and even tens of millions

Sure, Auckland lacks the extreme top end - but there's plenty that seems more reasonable in Manhattan Island too, even if you filter out co-ops.

https://www.realtor.com/realestateandhomes-search/Manhattan_NY/price-na-...

I hear record prices are also being achieved in Wellington - where there's a notable shortage of properties in the inner city suburbs (e.g. Brooklyn, Mt Victoria, Roseneath, Thorndon) coming onto the market.

The reality is that in both Auckland and Wellington, top prices continue being achieved for properties in sought-after areas close to the CBD. Location is, as always, the key.

TTP

Vehicles at the local Maserati dealership are still fetching high prices too.

How many have you bought recently?

Cause they will fetch you a lot more in a years time

Any evidence? Or are the voices in your head spinning into overdrive again?

Hi thegic,

Wellington house price year-on-year increase is currently around 9 percent.

Something for you to think about.

TTP

Hello TTP

your comment was "I hear record prices are also being achieved in Wellington" which suggests you are "in the know" of some spectacular change in momentum.

Where did you hear this? what examples do you have? what records are being broken?

Or is this statement just a bit of the old verbal laxative?

Hi thegic,

Here's an extract from Stuff:

"A haven of Wellington's history has sold under the hammer sight unseen for $1,028,000 – nearly double its rateable value of $580,000.

The three bedroom villa in Thorndon's Ascot St attracted fierce interest at the November 25 auction with eight bidders jammed in the lounge and three on the phone from as far afield as Fiji. There were 57 bids, 34 of which were above the reserve."

Thegic - you need to wake yourself up and get in touch with reality. Houses in Wellington continue to fetch top prices.

TTP

A 2 year old anecdote is all you need to gauge the market today.

My goodness you sound more and more like an RE agent every day.

Wellington prices were STATIC for AGES No exuberant capital gains, no shortages, just flat. The more recent house price growth period only really hit Wellington in 2016, and then continued with some catch up in 2017. It has slowed down again into 2018, with value growth back to single digits and the market very notably cooler.

And we are supposed to salivate over 2 years of growth after nearly 10 years of flat prices? You can try and fluff all you like TTP but you can't fluff the facts. Auckland has cooled, Wellington is cooling, capital gains are modest to non-existent and buyers are no longer fuelled by a sense of urgency.

Whether any of this will translate into falling prices or just a period of consolidation is unknown, but what it is not... is Hotty Mc Hot Hot so stop fluffing.

Houses in special locations will always attract interest, and of course the RE sponsored MSM are going to report on that. You never read them reporting on all the properties that don't attract lots of interest or bidders. It's entirely selective. The auction rates tell the tale.

gingerninja,you say: "with value growth back to single digits"
So you agree swith TTP

For goodness sake, read GM's post. Does it sound like he agrees?! Timewaster...

Hi Gingerninja,

There's abundant evidence that the housing market in Wellington remains strong - with a shortage of good houses coming onto the market (especially in the inner city suburbs).

There's no point you ear-bashing me, because there are information sources readily available that are far more reputable than you will ever be.

A great pity you didn't buy the section in Brooklyn that you told us all about a few months ago! I'm told that Brooklyn is now one of the "in" places to live in Wellington, especially because it's quite close to the CBD and gets amazing city/harbour views.

TTP

TTP...The section is still for sale, it has been since Oct 2017. Knock yourself out if you're interested. It's been reduced in price once already and there might well be some price flexibility.

https://www.trademe.co.nz/property/residential/sections-for-sale/auction...

I'm not going to argue with you. Growth in Wellington was just into the double digits in 2017, and now it's back in single digits again. Yes the growth is better than Auckland currently but that is hardly a surprise. Auckland's boom was long and fierce. Wellington's boom was short and nowhere near as fierce, and already cooling. Yes there is still some growth, but my point wasn't that there was *no* growth, it was that the growth is slowing, which is a fact based statement. This time of year, there are always less properties on the market. That's a predictable seasonal cycle. There is no notable back log like there is in Auckland and personally, I don't think Wellington prices are overblown even after there recent two years of growth, because prior to that, there was no growth for a very long time, so it was more of a catch up than anything else.

Brooklyn is a lovely suburb, and we have enjoyed it immensely, however we want to be closer to the CBD so it's not where we want to buy. So no regrets about not buying at all.

Hi Gingerninja,

Certainly - please yourself where you live. But Brooklyn sounds a pretty nice place to me.

You write above that growth in Wellington is "now back in single digits". Yes! The year-on-year figure is 9 percent - which is exactly what I wrote above!

Wellington houses have never dropped significantly in price. Analysts suggest that this is at least in part due to the dominant public sector labour market associated with the capital city - which provides for steady demand and limits any volatility.

Seriously, if you're waiting for significant falls in Wellington house prices, then I think you'll be in for a major disappointment.

With warm wishes,

TTP

TTP I didn't comment about looking for significant falls in Wellington! There are various factors that led us to our decision not to buy. But the slowing price growth certainly made that an easier decision.

I suggested that your fluffing was unnecessary because Wellington was slowing, your gushing seemed misplaced and melodramatic.

Wellington isn't up 9%. Why do you keep saying that? QV just released the data that the recent growth rate had been 8.2%??? Either way, that's slowed from the 10% winter 2016, and 9.4% summer 2017.

Either way, after so long of flat prices, a few years of 8/9/10% growth is hardly anything to wet yourself over. If you even the Wellington growth out over 10 years, it would be wholly unimpressive and likely not even beat a term deposit.

Nonetheless, we will buy in Wellington at some point, not because we hope for capital gains, but because it's an amazing city to live in. Just still deciding which suburb will suit us best long term. Brooklyn is lovely and does have amazing views as you say (although almost all suburbs in Wellington are likewise blessed). We just want to be a little more central.

Hi Gingerninja,

You say 8.2 percent. The figure I mentioned above is "around 9 per cent".

Sorry - but I'm not interested in splitting hairs!

You ought to take heed of the time-honoured wisdom: "When you're in a hole, don't keep digging."

TTP

Dude, i'm not in a hole.

"The average value in the Wellington Region was $644,567 in March, up 8.2% compared to a year earlier, although QV Wellington consultant David Cornford warned that values could be flattening."

https://www.interest.co.nz/property/93021/big-growth-housing-values-may-...

TTP, you must be halfway to China by now ;-)

$510k passed in on a Metropolis 2-bed is a great indication of where things are at. That building is about as high spec as you can possibly get and its beautiful. Body corporate would be eye watering however.

Therein lies a massive problem - high price and high body corporate do not provide a very viable mix. I imagine a 2-bedroom costs $800-$1,000 per month at Metropolis - before you even get to paying your rates and mortgage.