Two neighbouring houses sold for almost $4 million last month, and now the owners of four nearby properties are hoping they’ll reap a combined $6m when they sell up.
The two houses, on Evans Road, in Glen Eden, West Auckland, were sold together for $3.93m to a development company that has been buying up properties around the suburb.
The company plans to bowl the smart-looking properties and build new townhouses on the combined 2024sqm section.
The agents who brokered the deal, Harcourts' Aman Gulia and Joe Steel, told OneRoof that the owners of four properties on Savoy Road had decided to sell-up on the back of last month’s sale.
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“They saw that we had got [a] record price per square metre for Evans Road so they spoke to each other and then got in touch,” Gulia said.
One of the properties Savoy Road, in Glen Eden, that is coming to market. Photo / Supplied
“They’d even decided how they would split the sale price between them.”
Gulia said that the sale price could come in around $6m, nearly double the properties’ combined council valuations of $3.195m.
Together the four properties, that range from a 1980s cross-lease three-bedroom house to a five-bedroom 1970s home, have a land area of 3232sqm, an extremely attractive plot size for large scale developments.
One owner has been there less than three years, paying $695,000 in late 2018, while others have been there between 15 and 26 years.
Properties close to the town centre and train station are in demand by developers. Photo / Supplied
Gulia said marketing the properties for price by negotiation, rather than auction, allowed developers time to do their due diligence, while the long settlement time through to March 2022 allows the vendors time to buy new homes in the traditional spring uplift.
In the same neighbourhood, 20 bidders pushed the price of a single house on a 1000sqm section in nearby Rosier Road to $1.8m. Photo / Supplied
Developers are increasingly paying premium prices for development zoned properties close to the train station in Glen Eden, a suburb where the typical house price has jumped from $760,000 12 months ago to just under $1m. Rail travel times to the city are expected to drop to around 30 minutes when the CRL opens in late 2024.
Last month, 20 bidders duked it out at auction to secure a 1950s three-bedroom house on a 1000sqm section on Rosier Road, with the winning bidder paying $1.8m - more than $1.1m above CV.
In May, a similar property three doors away - another 1950s three-bedroom house on a 1012sqm section - sold for $1.355m. Thirteen bidders pushed the price to $515,000 above CV, showing how fast the market had moved in the two months since.
The second stage of townhouses on a 61-home development on the same street, Rosier Park, is priced from $759,000. Photo / Supplied
Ray White agent Michelle Mi, who marketed the properties with Tony Lallem, said that properties with sub-division potential were still attractive as there is big demand from local buyers for new townhouses, but many developers in West Auckland are missing out when good plots come to market.
At the other end of Rosier Road, the second stage of Rosier Park comprising 22 townhouses is already on the market as stage one’s 39 units have mostly sold out.
Barfoot & Thompson agent Ying Li Howe reported that she had sold the 2170sqm site for $1.7m in December 2018, and now the newest tranche of two-bedroom 70sqm townhouses are selling from $759,000.
Another nearby trio of properties on the corner of Routley Drive and Captain Scott Road totalling just under 2000sqm sold for $3.68m, but Barfoot &Thompson agent Trevor Jenkins said that not all sites were enticing developers.
“They’re fickle, they know what they’re looking for – they don’t want sloping sites, or drainage issues, or significant trees that they’d have to jump through hoops for," he said.
“But Glen Eden just keeps going and going, it’s got the train station and the village and all the local amenities. People are looking out from Avondale and New Lynn."
