A bidding frenzy for a do-up in South Auckland property shows that the auction results of 2021 are still possible.
In Ray White Manukau’s auction last week, a three-bedroom house on Portage Road, in Papatoetoe, sold for $1.213 million after 246 bids from five buyers drove the price over its modest $750,000 reserve and its $1.2m CV.
Agent Denise Wong, who with Rose Pham marketed the 1950s home, said that the vendor had been prepared to meet the market. “Yes, the market has declined – however Jenny was brave enough to let the market decide,” Wong said.
“She came on with her reserve low enough to let the auction flow, expecting to sell low and meet the market realistically – and got a nice surprise. She cried all the way through from $1.1m.”
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Ray White Manukau co-owner Tom Rawson said that while setting the reserve at $750,000 for the tired home on a 845sqm site zoned for suburban density may seem “crazy” that’s what the market feedback had been and the vendor listened. Then the auction process kicked in.
“The auction room was full, we got the most bids we’ve ever had. It was bought by a neighbour and a developer - it’ll be a longer-term project,” Rawson said.
He added: “Only yesterday I had a vendor who had chosen to sell by tender, not auction. There were seven offers, the top ones only $50,000 apart on a $1.3m property – but the guy with the under-offer said ‘I don’t like this blind process’ and wouldn’t move.
“In an auction, you have a process where people have the chance to buy before auction, at the auction, or immediately afterwards – but it’s the fairest because everyone can see what gives.”
Buyer feedback on the 1950s Papatoetoe house had priced it at around $700,000. Photo / Supplied
Rawson said in the last two weeks first-home buyers and families were back in the rooms, taking advantage of being able to see where cash buyers were spending. This week, five of seven properties sold under the hammer or immediately afterwards.
In Auckland CBD, Cameron Brain, auction manager for the Ray White City, said the company’s clearance rate for its 28 auctions held in June was back up at 79%.
While some of those were for bargains – a trashed apartment on Vincent Street for $43,500, a handful with remediation issues going for between $42,000 and $83,000 this week – Brain said they were selling for well above reserve, with multiple bidders.
A one-bedroom studio on Wakefield Street in the city with a declared reserve of $29,000 sold for $42,000. Photo / Supplied
“The investor and speculator market is coming back as long-term owners are selling, and we’re seeing leasehold around Wynyard Quarter and the Viaduct pick up," he said.
“But we’re starting to see that first-home buyer come back around $800,000, something we haven’t seen for two months as banks are getting more accommodating,” he said.
