Seven developers registered for the auction of a three-bedroom brick and tile deceased estate in Auckland’s St Andrews Road, Epsom, earlier this month, suggesting a glimmer of the return of the new-build market.
Ray White agent Mike Robson, who marketed the property, said that 33 groups had looked at the 810sqm site, zoned for urban density, and seven buyers had registered for the auction, where five actively made bids for the property.
The tidy 1970s house with a swimming pool had been pitched at developers, investors, home renovators or “families for whom education is a priority”.
Robson said interest was predominantly from developers, most of whom asked for extended settlement dates to give themselves time to have designs and consents processed before they took possession.
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The house sold to a developer for $3.15m, considerably under its $3.5m CV.
“The buyer is in two minds between building a family home, renovating the original house. But it will probably be removed as the value is in the double Grammar zoned land, predominantly and it would be difficult to do up.”
The double-Grammar-zoned house with a pool on St Andrews Road, Epsom, attracted a mix of buyers who considered renovating or bowling to re-develop. Photo/ Supplied
He added that while the property’s suburban zoning would allow terrace houses, builders would probably target more upscale townhouses to fit the school zoning.
Robson said that listing stock was still low as vendors who don’t need to sell were still holding back, and he had a sense that this market might continue for another year.
“But even in a flat market, auctions are still the first, best step to expose the property and get the market feedback.”
Nine developers competed for another 746sqm site zoned for urban density on Whitney Street, Blockhouse Bay, in action the Barfoot & Thompson agent Catherine Li, who marketed the property with Jacky Lu, said she hadn’t seen since last year.
Nine developers competed for a three-bedroom house on Whitney Street, Blockhouse Bay, zoned for urban density, which sold for $1.591m. Photo / Supplied
The west Auckland three-bedroom weatherboard house backing on to the local park was billed for its development potential.
Li said there was a lot of competition from the last three bidders, who pushed the price past the $1.4m reserve and the $1.5m CV until the hammer came down at $1.591m.
A three-bedroom house on a 718sqm site on Jolson Road, Mount Wellington, also with development potential, had a pre-auction offer after the first weekend of marketing.
An investor land-banking for future development secured a 718sqm site on Jolson Road, Mount Wellington, zoned for density for $930,000, well below CV. Photo / Supplied
Marketing agent Yuhei Umezaki of Ray White said that his vendor wanted the property sold, so was happy to accept the $930,000 offer, $280,000 below its $1.21m CV.
The tidy weatherboard and tile house had been tenanted for 13 years, but Umezaki said the investor buyer was planning to land-bank the property, zoned for suburban density, for development “in better times.” Completed three and four-bedroom townhouses in the area are asking around $900,000 to $1m, records show.
