Family home buyers are still managing to step into the Central Auckland market, as shown at an Auckland auction this week.
Developers didn’t get a look-in for all four of the properties in Mount Eden, Western Springs and Sandringham auctioned by Ray White.
Sales ranged from $2.26 m for a classic three-bedroom brick and tile in Sandringham to a smart two-bedroom unit in Mount Eden that went for a hair over $1m.
“There’s huge demand in the $1.5m to $2m range at the moment,” says Ray White agent Rick Mozessohn who was marketing a three-bed transitional villa at 41 Rocklands Avenue, Mount Eden with colleague Chanelle Yu.
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The house, which could charitably be described as a do-up (Mozessohn and Yu preferred “shabby chic”), attracted 55 groups through the open homes and at least seven registered bidders. It went for $1.92m, $470,000 over its 2017 council valuation.
A do-up at Rocklands Avenue, Mt Eden, sold for $1.92m. Photo / Supplied
The house ticked all the "before" boxes: on 511sq m of flat land, with many original features, in zone for Mt Albert Grammar and Balmoral School and, importantly, in a corner of the city that is zoned for single family homes, not density.
“Kiwis love a do-up and this appealed to lovely family buyers moving on to their second house and prepared to toil away,” says Mozessohn.
“I know there’s a perception out there that it’s all developers and flippers bidding, but we’re not seeing the flippers here. They’d have to get it for a really cheap price to make their margin. Family owner-occupiers get an emotional attachment and will bid up.”
The Rocklands Avenue house, which had a council valuation of $1.45m, still had many original features. Photo / Supplied
He adds that the eventual buyers had looked at least five other properties, bidding on some, and done the numbers on a renovation.
“It makes me so happy to see people maintain the heritage, there’s so much life in them.”
Ray White agents Robyn Ellson and Josh Powell got the top price of the night for their smartly renovated 1940s brick home at Parrish Rd, Sandringham. The 613sq m property is zoned for density and attracted four registered bidders, three of them active, to push the price to $2.26m - $861,000 above council valuation.
The three-bedroom 1940s home at Parrish Road, in Sandringham, on 613 sqm is zoned Mixed Housing Urban and sold for $2.26m. Photo / Supplied
Ellson says that the family buyers are still debating what to do with the property.
“Sandringham is just becoming so desirable, people are prepared to buy before they sell their old house. You’re surround by awesome character villages, Kingsland, Morningside precinct, Eden Park, with lovely character buildings with amazing back yards,” she says.
“It's amazing to me, there are still new buyers coming to market it’s really strong and there’s definite confidence.”
Finch Street, Western Springs sold for $1.6m, $520,000 above its 2017 valuation. Photo / Supplied
Two properties marketed by Ray White agents Rachel Berry and Tegan Stent were in big demand. A three-bedroom renovated bungalow at Finch St, Western Springs had four pre-auction offers, with more than 76 people viewing the property in just two weekends of marketing.
Berry says that the vendor had put the time and money into prepping the house for sale, including upgrading cabinets, paint and flooring and that paid off, with a sale price of $1.6m, $520,000 above council valuation.
“Vendors who make the effort do really well, they get that money back in spades.”
The contemporary bungalow on Finch Street had four pre-auction offers after only two weeks. Photo / Supplied
She says that bids shot $80,000 past the pre-auction offer of $1.515 in one minute, with the pre-auction bidder winning.
The second property the pair marketed, a smartly renovated two-bedroom unit at Brixton Rd, sold for $1.01m, $250,000 above council valuation.
Berry says that 95 per cent of the 81 people who viewed the property were first-home buyers, some with parents in tow, not investors and were attracted by the smart finishes and security of a unit as their starter property.
She adds with the great energy in the market, and lots more buyers than properties for sale, she’s advising would-be vendors not to hold off until spring to sell.
A cross-lease unit at Brixton Road, Mt Eden sold for $1.01m. Photo / Supplied
Jared Cooksley, owner of Ray White Mount Eden, says that is a return to normal market for this area that is not showing signs of a seasonal slowdown. Investors are out-bid by buyers spending for their own homes.
“For a while we didn’t have the first-home buyers and tyre-kickers, as they stood back thinking house prices would come down. But obviously that didn’t happen and now they’re back.
“There’s good energy for buyers with more than $2m. Some are selling at $2m to $2.5m and buying up to $3m to $4m. We’re a little surprised it’s still going strong and it’s so competitive.
“And there’s a lot of emotion. These are people upsizing and downsizing for life reasons. Back in the day it was about speculating but now it’s emotions - and that’s exciting to see.”
