An architectural gem in one of New Zealand most prestigious suburbs has sold under the hammer … for little over $1 million.
The catch? The three bedroom house at 44 Holliss Avenue is in Christchurch, not Auckland.
Bayleys agent Sarah Eastmond says she received a compelling offer within 10 days of listing the new-build, with the family who made the pre-auction offer eventually securing it at auction for $1.08 million - $100,000 above the 2019 rating valuation and more than half a million dollars above Christchurch’s median property value.
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The house, which boasts a quality finish and outdoor pool, sits on a 594sqm site on a hillside in Cashmere, one of Christchurch’s most desirable suburbs.
Eastmond says Cashmere is popular families with school-aged children “because of its school zoning and community feel", and many property experts have compared it to Remuera in Auckland.
“If this home were in Wellington or Auckland in a suburb similar to Cashmere, it would be a multi-million-dollar sale,” she says.
Ray White Epsom agent Ross Hawkins, who specialises in high-end properties, believes that 44 Holliss Avenue would likely sell for at least three times its sale price if it were located in Auckland’s top suburbs.
The main difference between Auckland and Christchurch prices is the land, he explains.
The RV for 44 Hollis Avenue values the land at $132,000, and the improvements at $848,000. In Remuera such a site would cost $3500 per sqm, which would take it to $2million for land value only.
“If you attribute the improvements to the house and add the land component to it, it’ll be $3million minimum, and I wouldn’t be surprised it would be $3.5 million in an auction campaign in the current market in Remuera,” Hawkins says.
He says buyers post-Covid are not so focused on their local area and have been more open to shifting around the country, where property prices are lower.
“You can get three houses [in Christchurch] for the price of one [Auckland home]. You could buy two rental properties and another one to live in,” he says.
Bayleys agent David Rainbow, who has been selling in Remuera for more than 35 years, agrees that houses of 44 Hollis Avenue’s calibre would sell for double, if not triple the price in Remuera.
“People have pulled down old houses and built new homes, which are similar to 44 Hollis Avenue and modern. They are in the $3 million range.”
Cashmere is a fabulous location in Christchurch, he says, but it doesn’t have the schools that Remuera has, which adds to the value of houses in the Auckland suburb.
According to OneRoof’s house price index, Cashmere property values have risen 12.5 percent since March 25, the day before the country went into lockdown as a result of the Covid-19 crisis. It is the second biggest rise in Christchurch, just behind Addington.
