Auckland homeowners looking to take advantage of the city’s unitary plan might be tempted to team up with their neighbours in the hope of attracting a developer – and bagging a higher sale price.
And while working with just one other neighbour can be challenging, think about the stakes – and potential rewards – when five neighbouring properties are on the block.
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The five houses at Mack Place, in Papakura, South Auckland, have been listed together, creating a huge 5,276sqm plot in a mixed housing suburban zone just a few minutes’ drive from Papakura train station. Three go to auction tomorrow, while the remaining two will be sold by negotiation.
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Bayleys agent Jenny Sinclair told OneRoof this was a first for her office, but she already had at least 12 developers express interest.
“Usually, it’s maybe two or three for development land. Market feedback is that they could get 20 to 30 houses on the combined site,” she said.
“Townhouses in Papakura just get snapped up. There's not much on the market.”
Three-bedroom new-build townhouses are currently fetching $750,000 in the suburb while four-bedroom homes can command $900,000.
43 Mack Place started the ball rolling on the combined listing. Photo / Supplied
Sinclair said the super listing began with an enquiry from the owners of 43 Mack Place.
“It was like a domino effect. They said maybe the neighbour was interested in selling, and then when I was there to do an appraisal, the next one approached me because they didn’t want to live next to a development. Then they spoke to the neighbour on the other side.”
She added: “Number 35, 39 and 43 will each be auctioned individually because they are individually owned and then the last two at 29 and 31 will be price by negotiation. It is easier to work with the one buyer once the others have been to auction.”
The five properties, three at 1151 sqm, one of 1148sqm and the fifth just 675 sqm have a combined 2017 council valuation of $3.36 million - $2.97 million of which is for the land. One of the owners only bought in September last year, while the others have owned their homes for one to six years.
The house at 35 Mack Place will be auctioned, with two others, on March 23. The final two properties are for sale by negotiation. Photo / Supplied
The listing follows the $6.125 million sale of another huge block of land in the neighbouring of lifestyle suburb of Karaka. The 2.4ha property at 6 Dyke Road went for more than $1.5 million above its 2017 CV. Its mixed housing and commercial zoning and location in an area identified for future development, was fiercely fought over by seven bidders at auction.
Elsewhere in the city, another pair of properties on 1900sqm at 5-7 Mt Albert Road, in Mt Albert, was picked up by a developer this month for $6.725 million – $1.1million above the reserve.
6 Dyke Road in nearby Karaka offered buyers 2.4ha of developable land. Photo / Supplied
Even in the formerly affordable South Auckland suburb of Otara developers broke the $2 million barrier, forking out $2.1 million for two rental homes last month – less than four months after the owner picked them up for $1.46 million.
Three developers competed for the two properties at 19-21 Crown Crescent, in Otara, at a Ray White’s auction. The combined 1715sqm site, which is zoned mixed housing urban came with development plans for 12 townhouses.
