A pair of 1970s-built homes in central Auckland together fetched $3.205 million at auction yesterday - more than $1 million above their combined 2017 CVs.
The properties at neighbouring 61 and 63 Swainston Road, in St Johns, aren't luxury mansions but they did offer buyers the chance to buy a 1214sqm block of land in the developer-friendly terrace housing zone.
Both houses were owned by the same person, and OneRoof records suggest the investment paid off big time. 61 Swainston Road last changed hands seven years ago for $312,000 while 63 was last sold five years ago for $937,000, yielding a profit, on paper at least, of nearly $2 million for the pair.
Barfoot & Thompson Meadowbank branch manager Grant Sykes, whose agent Daniel Duan marketed the properties, said: “Changes to the unitary plan was the driver, these were strategic land buys back then."
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Of the 15 registered bidders, four were still battling it out at the end, with the winning bid coming from a developer.
Neighbouring sites at 53 and 55 Patons Road, Howick, in Auckland, were listed together and bought by a developer. Photo / Supplied
Sykes said: “Nobody else is going to pay that money. The way the market is, developers need more land, they want to grab it and start building.”
Swainston Road ticked the key developer boxes, Sykes said, pointing to a development of 20 boutique homes at 69-71 Swainston that had just been brought to market.
“There’s no problem at all selling [new builds] at $1.2 million, to a mix of first home buyers, downsizers and investors,” Sykes said.
Last week, the owners of two neighbouring properties in east Auckland scored $2.916 million at auction after deciding to sell together.
The pair of properties at 53 and 55 Patons Road, in Howick, were snapped by a developer who now has a 2173sqm in a mixed housing suburban zone to play with.
Developers are hungry for houses on large sections. Also fetching top prices at Barfoot and Thompson's auctions this week were:
A large section at the Three Kings edge of Mount Roskill went for $2.971 million, $196,000 above CV. The 2117 sq m site currently has a 1950s house on it, but already has concept plans for 12 terrace houses, subject to council approval.
In Mount Wellington, where demand is also mounting, a corner site at 311 Panama Road achieved $1.03 million. The 688 sq m site has a CV of $730,000 and is in the mixed housing suburban zone, close to amenities. OneRoof records show it last sold in 2010 for $342,500.
Another Mount Wellington corner site at 41 Mountain Road, this one of 797 sq m, went for $1.405 million. The site has a generous 1950s house, but again, its location and mixed housing suburban zoning gives it potential for future development.
