As developers comb Auckland for big sites, they are blowing other buyers out of the water at auctions.
This week, two neighbouring properties on a corner in Greenlane sold to a developer for $3.75 million, delivering the owner a near-$2 million windfall.
Together, 14 Konini Road and 16 Ewenson Avenue offered two 1950s homes on a 1389sqm site in a popular suburb.
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Bayleys agent Glenn Baker says interest in the site was high, due to it being zoned mixed housing suburban.
“The fact that two sites combined are over 1200sq m gives you an option to put two or three dwellings on each site. You can really intensify your development a lot more than on a regular-sized single site,” he says.
“People got attracted to the opportunity as the site has a nice shape with a bit of elevation so the buildings are going to look good, with an open corner providing additional road frontage making it appealing to developers.”
He says the buyer, a developer, hasn’t decided on his immediate plans for the property, but both homes are likely to be relocated and not demolished as they are in good condition.
Both properties on a large 1389sq m Green lane site are likely to be relocated as homes are in good condition, agent says. Photo/ Supplied.
The sale price eclipsed the combined CVs of both properties by $1.45 million, and well above what the vendor originally paid for them. He bought 14 Konini Road in 2006 for $532,000 then snapped up 16 Ewenson Avenue for just over $1.22 million in 2012. On paper, that's a profit of just under $2 million.
Another double property at the Remuera end of Greenlane also sold under the hammer yesterday for $2.41 million.
The two 1950s units on 4 and 4A Green Lane East are sitting on a 607sq m site with zoning for apartments that could allow for a development up to 16m high, subject to council consent.
Barfoot and Thompson agent Steve Hood says eight active bidders were competing for the two properties which had a combined council valuation of $1.36 million.
OneRoof records show the front unit, 4 Green Lane, last sold for $160,000 in 2012 and neighbouring 4A was last sold for $650,000 in 2015, meaning on paper, at least, the owner of the pair made a cool $1.6 million from the sale.an investor, is planning to retain the existing two-bedroom units with plans to potentially develop later, Hood says.
4 and 4A Green lane East units were purchased by a developer for $2,410,000. Photo/ Supplied.
The buyer, who is an investor, is planning to retain the existing two-bedroom units with plans to potentially develop later, Hood says.
“Investment units and blocks are pretty hard to find at the best times and in this location the zoning is terrace housing and apartment, so existing homes can potentially be demolished and removed for up to a five-storey development,” he adds.
Sites with potential for development that have no complications and services already provided from the street are in high demand, he says.
Also selling under the hammer was a large rental villa on 473sq m at 232 Balmoral Rd, Mt Eden that went for $1,283,000, well above its council valuation of $900,000. Currently a rental property, it was billed as a do-up family home as it is not zoned for development density. It was brokered by Jessie Yang and Robben Li of Barfoot & Thompson.
