While buyers are ignoring house after house at auctions, one east Auckland property owner struck it rich when 14 bidders chased a smart brick and tile house in an east Auckland.
Ray White Remuera agent Cherry Killgour, who brought the immaculately renovated four-bedroom home on Carlingford Drive, East Tamaki, to auction with Steve Leyland, said that seeing over 90 groups through the three weeks of open homes was “just like the old days.”
She said the huge interest in the home showed the shortage of good mid-level properties, as buyers picked over the offerings and honed in on a quality few.
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“These were buyers expecting to spend around $1.4 million, we had seven active bidders on the day. It went on the market at $1.525m and there was a knockout bid at $1.6m,” she said, adding that the vendors had completely refurbished the kitchen, bathroom and closets, and put in new carpet and paint before putting the house on the market. Records show the vendors had paid $575,100 for the property 11 years ago, and it now has a CV of $1.35m.
“It's in Botany school zone, there’s an absolute shortage of single level, brick and tile, it’s very uncomplicated. I’m going to have to door-knock as I had another half dozen people who were hoping to buy conditionally if it didn’t sell at auction.”
Killgour said that while there may be plenty of listings, a house with a special combination of features and amenities that really appeals to buyers is still hard to come by.
“I’ve got people who have been looking for ages and missing out, they’re very disillusioned.”
Last month 17 bidders competed for a four-bedroom bungalow on Thames Street in Epsom, Auckland, which sold for $2.08m. Photo / Supplied
The turnout comes as Real Estate Institute of New Zealand figures released Wednesday show that the number of homes for sale in Auckland are at their highest point in a year, with the 10,159 listings representing around 35 weeks of stock, given only 1633 homes sold in the city in September.
Last year, at the height of the market, there was enough stock to cover just 11 weeks of sales, but this year, agents say, buyers are pickier and there are still shortages for particular types of homes.
Seven bidders registered for a deceased estate property zoned for urban density on St Andrews Road, Epsom, which sold for $3.15m. Photo / Supplied
REINZ chief executive Jen Baird put the slow start to the traditional September spring market down to people hitting pause.
“[They’re] waiting for a more favourable market, whether buyers waiting for a deal, or vendors reluctant to list in fear they may be that deal.”
However, Baird was still optimistic about a later pick up over the warmer months with more listings giving buyers more choice.
But while auctions dipped to just 16.8% of sales in Auckland (in September last year they accounted for 30.1% of sales) there were some that sold under the hammer.
Buyers paid $3.85m - $1m over CV - for a renovated bungalow on Dorset Street, Westmere. Photo / Supplied
In Bayleys auction rooms this week, a tidy three-bedroom bungalow on Balmoral Road, Mount Eden, sold for $1.5m, $225,000 below CV, as two bidders competed. Agent Wei Wei Elder, who marketed the former office premises with James Were, said that both investors and home owners looked at the property, which is zoned for Epsom Girls and Mount Albert Grammar schools.
She said at this entry level price point there were not nearly as many buyers as she had a couple of weeks ago for a four-bedroom character bungalow on Thames Street, Mount Eden, next to Maungawhai Primary school which had all the charm.
“That was your classic picket fence bungalow. We had 57 views and four registered bidders, it was pretty fast, over 17 bids and it sold at $2.08m. That’s under CV [of $2.35m], but that’s the market right now,” she said, adding that it was a different story for properties worth over $4m.
“There are heaps of buyers, it has its own dynamic. I’ve sold three properties in Albury Avenue and Mountain Road in Epsom in the last couple of weeks, all for over $5m. There are just not enough listings, these are confident buyers.”
A bungalow zoned for commercial or residential on Balmoral Road, Mount Eden, sold under the hammer for $1.5m. Photo / Supplied
In Ponsonby, Bayleys agent Blair Haddow agreed that for the right house that “ticked all the boxes” there were plenty of buyers.
Buyers paid $3.85m - $1m over CV – for a stylishly renovated three-bedroom bungalow with a pool on Dorset Street, Westmere, after spotting it as it was being photographed for listing. Haddow said 45 to 50 people who viewed the property showed the market is definitely feeling the lack of listings for this time of year.
“It’s quiet. There’s just a lack of homes that tick all those boxes, a lot of buyers at this end of the market who can’t see anything they like.”
And while they’re no longer a common sight in auction rooms, developers did show up for a three-bedroom brick and tile deceased estate on St Andrews Road, Epsom. Ray White agent Mike Robson, who was marketing the property, said that 33 groups had looked at the 810sqm site, zoned for urban density, and there were seven registered bidders.
The house sold to a developer for $3.15m, considerably under its $3.5m CV. Robson said the value was primarily in the double Grammar-zoned land.
He added that vendors who don’t need to sell were still holding back, with a sense that this market might continue for another year.
