An Auckland businessman has taken a $1.3 million-plus hit on his luxury Auckland penthouse that sold for even less than the declared auction reserve.
The three-bedroom, three-bathroom apartment on Kepa Road, in Mission Bay, was purchased at the peak of the market in 2021 for $5m, but put back on the market after the owner's circumstances changed.
The 194sqm penthouse was due to be auctioned last week, but was withdrawn from auction at the last minute and instead priced by negotiation.
Just hours later the owner accepted an unconditional offer from a local resident who wanted it as an investment property.
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Ray White Parnell listing agent Andrew Fava could not disclose the exact sale price as it does not settle until next month, but said it was “just slightly below the disclosed reserve”.
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Fava said the settlement had favourable conditions for the owner as it was an unconditional deal with the full deposit paid and a quick settlement.
“Those kind of offers are worth their weight in gold and the majority of our vendors appreciate that. The terms are just fantastic because it is done and so many of the deals we are seeing at the moment are conditional on the sale of other people’s properties and that’s just not a boat you want to be in because you are susceptible to all sorts of drama.”
The owners had tried to sell it with another agency last year and Fava said they were pleased it had sold so they could move on.
“In a market that’s not on a fabulous trajectory, apartments usually bear the brunt of it. That’s what I’ve found, that’s been my experience.”
The apartment was state-of-the-art and spread over 194sqm. Photo / Supplied
The owner told OneRoof last month that he had adjusted his price expectation and was ready to meet the market after purchasing another house in Auckland.
“I’ve just got to face the reality that the market has shifted and we want to sell it so we will make sure it’s attractive in the current market,” he said.
He and his wife had contemplated renting it, but wanted to sell it while it was in immaculate condition rather than renting it out and risk it being damaged.
“It’s just we got caught in the market – we bought on the high and we are selling on the low and that’s life.”
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