The message is getting through to vendors in Auckland’s most sought-after suburb that buyers are desperate for houses.
Ray White Remuera agent Steve Koerber says that in the last seven days 39 properties have hit the market in Remuera, the highest number of new weekly listings he's seen for the suburb.
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“Listings per week for Remuera can go as low as 10. In spring, 20 listings would be a strong number. In one week, the market has got hot, but with that much stock it has got to affect the numbers at auctions.”
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Koerber and his wife Nila sold a "do-up" property at 11 Woodley Avenue under the hammer today for $4.41 million after a pre-auction offer of $4 million.
“Is that [pre-auction offer of $4 million] an aggressive number? Only if the market was more predictable – one moment it seems high, the next moment it doesn’t.”
Koerber has noticed buyers are paying big prices for do-up properties in desirable locations.
In mid-September, they sold a house at 28 Ridings Road for $4.788 million. Billed as “Grand Designs-ready", the property boasted 860sqm of flat land in double grammar zone and had enviable views. The price was considered entry level for the area. A similar do-up on the same street later sold for $4.5 million.
“It seemed a phenomenal price two months ago. But it was setting a trend for do-ups – all mid-$4 millions, and all needing work,” says Koerber.
Buyers are seeing that done up houses are getting around $5.5 million to $6.5 million, so are confident they can spend $1 million or $2 million on their renovation.
Last done up in the early 2000s, but without an en-suite or swimming pool, the house would be considered a do-up in Remuera, agents say. Photo / Supplied
Koerber says that the buyer with the pre-auction offer on Woodley Avenue house competed with one other bidder to win the house, and had been looking for three months.
“They’d sold their house and were getting a bit tired of missing out on other houses and needed to buy before Christmas. The house was last done up in the early 2000s and it didn’t have an en-suite. You could easily put another $1 million to get pool and landscaping.”
But Koerber adds that sellers in the higher price brackets are still timid about listing because they are scared they will not find a replacement. While some are happy to downsize or put the money into a bach, buyers who are moving up to $8 million properties, may not find what they’re looking for.
Ray White Chief Auctioneer John Bowring has also seen the market heat up over the last ten days.
“We sold five out of six at Royal Oak last night, we’ve got eight in Remuera and four in Mount Eden. It’s all heating up prior to Christmas.”
Bowring says that there has been an increase in pre-auction offers, but the tactic, intended to blow other bidders away, is not fool-proof.
“We’re still getting the quality of the bidders, even if a few drop out. The good average price per property is still there.”
Bowring says that the average number of active bidders this calendar year in just under three per lot, but has gone up to closer to four this month. “Prices are still holding up, and places like Papakura and Pukekohe are now starting to go really strong.
“Buyers are prepared to go for a do-up because they see what’s attracting people, that when they are completely done up they’ll get [the money].”
