Most of the apartments on offer were larger units that could have appealed to owner-occupiers or investors and all sold under the hammer

This two bedroom apartment in Mt Albert sold for $555,500.

It's not often you get a 100% sales rate at an auction these days but it was a clean sweep at Ray White City Apartments' Auckland auction this week.

Four units were on offer with three of them being bigger units that could have appealed equally to owner-occupiers or investors.

The larger units were a character (66 square metre) one bedroom loft apartment with a balcony on the funky side of town in  Lorne Street in the CBD, a two bedroom, 65 square metre apartment with a balcony and three car parks in Mt Albert, and a 53 square metre, one bedroom apartment overlooking Myers Park in the CBD.

The compact unit was a 40 square metre, two bedroom unit in the Altitude building opposite the Sky Tower on Victoria Street.

Three of the units attracted multiple bids, with some of the bidding being quite spirited, while there was just one bidder for the fourth property but he increased his bid several times and by the end of the auction all four units had been sold under the hammer.

At Barfoot & Thompson's regular apartment auction just one unit was on offer, a 49 square metre, two bedroom unit in the Aura building on Cook Street in the CBD.

Although the property had been advertised as requiring an urgent sale, it was passed in for sale by negotiation.

Details of all the properties offered at both auctions and the prices achieved on those that sold are available on our Residential Auction Results page.

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91 Comments

4 out of 4. Spring is here folks.

I can't wait for ttp to get out on day release. Sure he will have some pearls of wisdom for us all.

So the Chinese military are cramming in a few more purchases of forward operating bases in Auckland before the foreign buyer ban. The time to start worrying is when these 'empty' investment houses and apartments all get occupants at the same time.

Oh nic, chessloser is going to hate you for your practical statement.

Sadly, Colonel Cheesemaster and I rarely converse these days, I do miss our little chats.

i think you typed his name incorrectly, dont offend him

Haha, no offence taken. Just in case you guys couldn't figure, that's not my real name.
Sorry Nic, been a bit busy.

Name or Rank? Don't tell me you're only a Captain.

Sorry to disappoint, Mrs The Point, but I don't have any "pearls of wisdom" to offer you today. (You ought to avoid becoming too reliant upon my advice anyway.)

My only comment is to reiterate what's obvious: auction clearance rates in Auckland have been consistently higher over the past few weeks.

Despite it being mid-winter and a relatively flat housing market, there's buyer confidence in Auckland.

Mrs The Point - I trust that's enough to keep you happy. Perhaps you'll celebrate by buying yourself a new frock and matching pair of high heels - in the latest winter pastel tones......

Enjoy the weekend everyone!

TTP

Boom. There it is! Hahahaha

It's much more fulfilling to try to improve oneself rather than to mock others, try it

http://www.abc.net.au/7.30/interest-only-home-loans-under-scrutiny/9540724

Hi TTP

CN found this and I hope doesn't mind me cribbing it. I couldn't help but wonder if the lady in the story was an Australian relative of yours? Loved her filing system.

Banking crisis anyone?

She certainly went "all in." I think she needs to take personal responsibility.

I think she should be jailed for mortgage fraud along with her broker.

Definitely the mortgage broker. If the mortgage broker (the individual, not the company) was jailed for lengthy period (say more than 2 years), then this would make other individual mortgage brokers think twice before committing loan application fraud. Definitely need a stick as a disincentive for fraudulent behaviour. When there is a carrot (large commission payment) for the mortgage broker employee, there is every incentive to get the loan through. Without the stick, there is no repercussions for the illegal behaviour.

Also the mortgage broker company should be heavily fined, so that the owners and managers will not accept the culture of loan application fraud by any employee and have procedures to terminate employees that behave in an illegal manner.

ttp you nervous... go hide

Indeed, this kind of thing makes my blood boil. 11 investment properties! At what point on a nurse's salary does that seem a little bit stretched? All in the name of greed, when it was swimming and leveraging equity was always winning she was no doubt the greatest investor this side of Warren Buffet, and now suddenly it's the nasty banks that did it, no, you did it, you applied for mortgages on 11 properties that you could never afford, so tough, now pay up.

But, but..... she only signed the last three pages!

I wonder if this is why all our nurses are looking for a pay rise? They all went to an NZPIF seminar, got a bit excited by Tony Alexander's enthusiasm and are now in a mortgage mess.

Bit more Tony required I think...talk it up TA.

https://www.youtube.com/watch?v=HnnmmQb1XO4&t=146s

I just love how TA says "inshoelayshin." 2.40 enjoy.

Also building a buy and hold property investment portfolio is being sold by many as a panacea for those looking to fund their retirement, and those who have insufficient savings for retirement.

1) That is fine in the beginning of the property price cycle when properties have sufficient yields to have positive cashflow and be positively geared.

2) Then this attracts a number of new property investors (and lenders who have financed them) who drive up property prices. It also attracts property traders who buy, renovate and resell for profit. It also attracts capital gain oriented investors. Some residential property investors become residential property developers by adding new dwellings to their properties with vacant land (typically a house on a large section).

3) The higher property price allows aggressive property investors to revalue their property portfolios and then borrow more money to maximum allowable LVR's (aka recycle equity / equity release) to use as a deposit on the next investment property purchase, typically financing with interest only loans.

4) repeat steps (2) & (3) above a number of times, until conditions in step (5) are apparent. Note that interest rate declines since 2006 / 2007 has allowed steps (2) & (3) to go on a lot longer.

5) Property prices continue to rise to the point where properties financed on maximum leverage and interest only loans become negatively geared and have negative cashflow.

6) Capital gain oriented investors with high income levels continue to purchase investment properties even though they are negative cash flow. Property traders continue to buy properties to renovate, and resell for profit.

7) Meanwhile as property prices rise rapidly, owner occupiers and first home buyers have a fear of missing out and feel compelled to buy or they will miss out.

8) Those cashflow oriented property investors unwilling to buy at negative cashflows then buy in areas with higher rental yields which allow properties to be positive cashflow - this has likely driven up property prices in former high yielding locations - for Auckland property investors, first the move was to Hamilton, then other areas further abroad - more recently it has been Hawkes Bay, Kawerau. Kawerau has been one of the locations with a low price point for property investors - since 2014 the average property price have risen 95% - now imagine the impact on that with leverage. For property investors with 62,000 of available capital to put down as a deposit, they can still buy in the Wairoa district (lowest price point) with current 65% LVR's.

9) In their search for returns, and as LVR'S on residential property become the same as commercial property, some residential property investors start venturing into commercial property investments. Increased investor demand for commercial property drives up prices, particularly for those at lower price points.

10) Then something unexpected causes the music to stop ...

Linda Schmidt is in the shit.

at least the streets are warm in WA..

Great. It shows what the media trying to potray and influence.

Headline could be 100% Sale in Ray White auction AND 100% Failure in Barfoot Auction OR to be fair 80% sale in Aparment auctions in city (4 sold out of 5).

"Is the glass half full or half empety" a common expression, a proverbial pharase used to reflect optimism or pessismism or as a general litimus test to simply determine an individuals world view.

It's also called low volume statistics. The options were 0% , 25%, 50%, 75% or 100%..

Perhaps simply a matter of vendor’s price expectations gradually becoming more aligned with those of purchasers.

40 sqm for 2 bedroom apptmt sounds like something you find in Tokyo. Are you sure the numbers are correct?

There are many 2 bedroom apartments in Auckland smaller than 40sqm. One double bed plus one single bed don't take up much space.

bet most would be foreigners snapping before the ban... as they can see it closer to being implemented

Mate, you say the same comment every time. Do you know that locals also need houses and need somewhere to live. Have your attended any of these auctions. I have and I can tell you that they were NZ residents. Unless of apply the Labour party test, some of them didn't look Kiwi (i.e. white). They must be foreign buyers like 50% of Auckland.

Mate, my statement is factual about the ban.. I used the word 'most ' ... maybe time to take some English lessons

Do you ever Read your comments...its like your shadow.. no different from one day to another..

Look at the shit on your back before noticing others..

Yeah "most" were not white. Must be foriegners. Apologies. Have you bought a house yet or still hoping?

Yeah, how white do you need to be before you're not called a foreign buyer....pinky white???

how does that bother you.. spend time to up skill yourself, than worry about others..

Do you qualify for kiwibuild, just about anyone can. Why don't you get the govt to help you out. I think those Kiwibuild are definitely "Houses Overpriced".
Anyway gotta go to my "white" colour job now. Have a great day abusing anyone who doesn't share your view on this site.

lol, you're really a specimen aren't you..

you are so scared that the kiwibuild is going to ruin your life, that you are becoming a crotchety old woman.. take it easy, no matter how much you try to hit out, it will just come back to bite you..

now go on, and upskill yourself...

Wow Cheesemaster, why are you so hung up on race? I presume you mean "white collar job", no need to bring race into your job description. Also I believe Labour based their foreign buyer comments around surnames, not skin colour. Considering over 20% of the Chinese population is named Wang, Li, or Zhang it is not such a preposterous way of looking at a pretty poor data set.

It's mine and HO joke about "white colour" instead of "white collar" jobs. I hope he sees the funny side of it. Most comments here are not serious anyway and like an ahole everyone has an opinion. Some people get seriously offended but I come here for a laugh. No where else is such a pessimistic view of the world offered. Haha

i like your spirit..

no offense given nor taken

HO, look at yourself before commenting. Pot, Kettle, Black.

dgz, you're back.. have you cleaned yourself up.. you dont want to get an infection, do you..

DGZ always keeps himself clean and at the cutting edge of his local RE news, in the hopes that Linda Hill (a Barfoot REA) will notice him.

Hi Houses Overpriced,

Chessmaster and DGZ are absolutely correct.

There's no indication that foreign buyers are particularly active in the market right now.

But those buying in the present market have adopted a counter-cyclical strategy - buying when the market is relatively flat.

They'll reap a benefit not immediately, nor in the shorter-term - but when the next upswing comes. (The great majority of buyers are NZers - who are well familiar with the market.)

TTP

With asking prices plummeting it will be interesting to see if those who think they are buying and getting a good discount at the moment feel the same way in a few month time.

I'm guessing today's discounts will be considered over inflated in hindsight.

Still predicting a 20-25% price drops from peak in Auckland

100%, this is a terrible result! Why aren't Aucklanders negotiating anymore? Negotiating is so yesteryear ;-)

as the days go by, you can sense the fear from the property spruikers, its a shame they have to sit at the sidelines and watch...

up
13

There are 1273 apartment listings in Auckland. After selling 4 of them the property prices are saved.

We're back baby!

Hi dictator,

Notably the number of Auckland apartment listings has fallen since I last looked.

TTP

So

100% clearance for Ray Whites

0% clearance for Barfoots!!!!

Headline is a bit misleading, overall 4 from 5 sold = 80%

Of course whats happening in SYD right now will never happen in holy AKL

https://www.businessinsider.com.au/sydney-house-prices-downturn-apra-hom...

same in perth, i have family moving back and they will be selling for what they paid 5 years ago, and that is after adding a pool and solar.
i guess NZ must be the only country where house prices always go up year after year

Yeah, Perth has been doubt cursed by the commodities bust and now the general reduction in mortgage credit that is happening in Australia. I think the worst is still yet to come for WA, unfortunately

A number of my friends who moved to Aust 5 years + ago, are on their way back to Auckland. Their kids can't get University education without paying huge fees. I get a feeling the Australians don't like us Kiwis. Guess they'll be buying homes too, right. Thoughts or abusive responses ??

Just happy to hear you've got friends Colonel.

pretty sure he's got heaps of online friends.. in the name of playing chess..

Who do people keep telling me that they think the average Auckland house price will be over $2M by 2030??

Hence I've been telling you to see a psychiatrist. . Listening to voices in your head is never a good sign

And how is the price of the average Auckland house going to double in the next 11 odd years. Just because people think something will happen doesn't mean it will. People are stating an opinion which is based on what exactly?

Because they doubled in the last 11 years so just extrapolate that data forward. Easy as man.

Wages will go up at 2% P.A. and house prices will go up at 8% P.A. In 20 years time, the average wage will be $116k (up from $80k) and the average house price would be $3.97 million up from $920k. House price multiple of 34.

Thanks for playing - I take it you are being sarcastic :-)

or you prove my point exactly.

Anyone with a spreadsheet knows housing is a 1 way bet.

Based on current trends (2% wage inflation and 8% house price), in 30 years from now the average salary in Auckland will be a whopping $145k and the average house price will be a mere $9.2 million.

A person on the average salary will need to save $1.8 Million for a 20% deposit on an average house or 13 years salary. That leaves them with a $7.4 million mortgage, by then we will have 1% interest rates and 60 year loan terms so the weekly mortgage payments will be $3154 out of the $2000 per week they take home.

The problem is, in 13 years time when the person finally saves up that $1.8 million for a deposit the average house price is now $25 million and salary is $190k. The banks go "yeah okay you have a good savings history 7% equity is fine", so they lend them $23 million at 1% over 60 years. Mortgage payments are now $9804 per week out of their $2600 take home pay.

I do admire your maths and your optimism that the banks will be so understanding. (tongue firmly in cheek).

I'm sensing something a little strange here, Nzdan. Can't quite put my finger on it.

You could be right, of course we'd need a good bout of the inflation that lead to the 'doubling every 7-10 years' rules of thumb. If inflation stays low, I don't fancy your chances.

Horton heard a who!!!!

they needed saving too!!!!!

In 2030 it very likely that Auckland average will be around $2.0M

in 2030, you may be using a walking stick

What's wrong with your head HO? Eco Bird may be using a walking stick to hit you on the head when you can't think properly lol.

You'll be before me, so by the time he's done with you, we may have to start the rosary

Shish, DGZ!

Don't go telling people!

TTP

Every Fund Manager I know of is short REITs or stocks such as MGR but The Turd Polisher knows better than them.

Buy long and gear up he said...it will be fun he said.

Auction on-site at 3pm tomorrow. DGZ. Let me know if you're attending. Otherwise I'll keep you posted with the selling price. https://rwremuera.co.nz/auckland/remuera/12-brookland-place-18724521/

Update - this house has been SOLD under the hammer at this afternoon's onsite auction. The whole street was full with parked cars with people spilling out on the street during the auction. Happy vendor and happy buyer I hope ^^
https://rwremuera.co.nz/auckland/remuera/12-brookland-place-18724521/#su...

DubyaGZ? 90mins later but no news from the front? Are you okay? Don't tell me you've been kidnapped by a cult of DGM, currently waterboarding you and forcing you to repeat "DTIx3 in DGZ"?

The whole auction room has spent the past 90 minutes standing around like a bunch of stunned mullets.

He’s with me.....and I’m not sharing....DGZ auctions just last forever

#sadpropertypornaddict

I had to attend to another location in a hurry after the auction. I am sorry I couldn't stick with my real time reporting for you all but a sale is a sale and there are quite a few bidding groups. Spare some thought for me going around my neck of the woods in the weekend to get a report for you readers ^^

Indeed, I saw the release of the white doves from my house! All the little children in their best clothes are walking home now, beaming with joy. The baby deer have peaked out from their cover at orakei basin, wanting to know if it met reserve, a bright star shines in the sky and three men (wise men?) are travelling to the auction house now with gifts of gold, myyhr and frankencense. The people of the neighbourhood have talked of little else!! Joy of joys!!

#sadpropertypornaddict

Don't be so doom and gloom. Wouldn't you wish the best for the new buyer starting their new life in DGZ?? Would you rather it was snapped up by an investor?? Which one Bobster?

What’s doom and gloom got to do with it? I am merely commenting on your strange property porn addiction......it’s the most extreme case I have ever seen

Bobster yes it is an addiction but it's better than smoking drugs or going out killing people. Here's a 2-bed apartment that was sold for $1,675,000 in another auction at 10am today. CV is $1,450,000 so it's 13.8% over the CV. I didn't attend this auction but found out later today. Ex Expat should be happy with this result in postcode 1071 ^^
https://nz.raywhite.com/auckland-city/st-heliers/1903805/

I trust you keep your hands in plain sight all of the time

Please have a look at this and let me know which one you like.
https://www.youtube.com/watch?v=vOAecEIqQaA

Hi DGZ,

Looks a nice property!

Might set another price record??

Those three magic letter (D, G & Z) certainly count for a lot - especially in a flat market!

TTP

Here's a magic word which means as much as yours and DGZ post.

Beer. Not keen on flat beer though.

Mmmm beer.

for all those who think that auckland is a great city to live in..

internal migration stats "In the year to June last year, about roughly 14,000 more people left Auckland for other parts of New Zealand than moved in"

Quitters are quitting...and that's just the natural progression of being DGMs.

They will be banished forever.

Anyway, this how things should be. People can move around and have richer experiences. I hear Spain is nice.

you're exactly right, people will move around based on their personal circumstances and as you said, richer experiences..

where as the comment from DGZ, was pathetic...

that is a comment from a retarded person..

something is seriously wrong with you..