Two neighbours in Auckland’s inner west struck the jackpot when they sold their homes at auction last week for $5.15 million to a buyer who hadn’t even set foot in the properties.
The two houses on Yeovil Road, in Te Atatu Peninsula, one a modest three-bedroom 1970s house, the other a smartly renovated four-bedroom home and with a swimming pool and flat, have a date with a wrecking ball, with the buyer planning to put up terrace houses on the combined 1638sqm site.
The properties, which have a combined CV of $2.35m, are zoned for apartments and terrace houses and are located close to a park and a big supermarket.
The listing agent, Harcourts’ Daniel Shin, said: “Over $5m is not expensive because of the apartment zoning. We had many developers looking at the properties and three bidders. You could build up to six storeys but the buyer will build three-storey terrace houses. You could get up to 20 on the site.
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He said that developers priced out of Auckland’s inner-city suburbs were turning their eyes to more affordable locations like Te Atatu Peninsula. The waterfront suburb is the next stop along the motorway from pricier Point Chevalier.
“Te Atatu Peninsula is going to be the next Point Chevalier,” he said.
Even though their homes will be bowled, the vendors will be happy with the sale. According to OneRoof records, one of the houses last changed hands for $1.25m three years ago, while the other was bought five years ago for $1.075m, handing the neighbours a combined profit, on paper at least, of more than $2.8m.
The houses are next to a park and close to Te Atatu Peninsula town centre. Photo / Supplied
Shin said that the sale price worked out to be $3144 per sqm, which compared favourably to other emerging suburbs close to the city on the North Shore, like Northcote and Forrest Hill.
Properties zoned for development under the Auckland Unitary Plan tend to brings better prices.
Another Te Atatu Peninsula property sold at auction last week, a smartly presented three-bedroom 1950s home on Rewarewa Road, fetched $1.965m, more than twice its $920,000 CV, thanks to its favourable zoning.
Ray White agent Charlie Brothers, who marketed the property, said that the $2405 per sqm was a good price for the property.
A renovated three-bedroom home on Rewarewa Road, in Te Atatu Peninsula, sold for $1.965m. Photo / Supplied
“The neighbouring house, same size, sold two weeks earlier for only $1.81m. We’d tried to get them to sell together, as there was a serious buyer who would have paid a lot more for the pair,” he said.
The seven bidders were a mix of family buyers, investors and developers, one of whom ended up winning the auction.
“Developers are looking at their wider options, and that part of Te Atatu is very popular. I don’t see it stopping.”
A three-bedroom 1950s house and back section, on Alverston Street, Waterview, sold for $3.27m. Photo / Supplied
Developers are also eying up sections in nearby Waterview.
A three-bedroom 1950s house and an adjoining empty section near the harbour on Alvertston Street sold at auction last week for $3.27m or $3231 per sqm.
The listing agent, Ray White’s Ross Hawkins, said there were 11 bidders competing for the combined 1012sqm site and noted that the sale price was a new benchmark for Waterview.
“We have 10 unsatisfied developers we now need sites for. Some have history in the area; some are just looking for opportunity with a nice position. Being near the water means they can build something more upmarket,” he said.
“Even the big-scale guys are looking for these more manageable development sites as they are not as risky as big apartment blocks, where we've seen big guys go under. Ten smaller jobs can keep their crews busy, and we’ve sure got buyers for the end product.”
However, as fast as prices for the inner west sites are moving, they’re still nowhere near the luxury end of town. Just this week, Hawkins sold prime waterfront land in St Heliers to developers who forked out over $10,000 per sqm.
