A development site in upmarket Orakei in Auckland sold under the hammer at auction last week after the developer pulled the plug on five high-end homes despite work having started.
But the agent who marketed the urgent sale and the former head contractor of 72 Rukutai Street are hopeful the project will still complete under the new owner, who paid $3.42 million plus GST, which is around $400,000 more than the price the developer paid in December 2020.
Work had been underway on the 966sqm site with photos showing the concrete foundations already in place. Underground services had been put in and building and resource consent given for the homes to be built where an older-style house had stood, which was demolished last year.
Barfoot & Thompson agent Rocky Liu would not say who the original developer was but said they had been feeling some stress financially.
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“But there is no issue for the construction site, all the foundation has been done and all the ground services have been done and also sign off by the council so it’s no problem at all.”
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Liu would not say who the new buyer was either but described them as a professional and experienced medium-sized development company with other projects on the go in Auckland.
He says he is confident they will complete the project.
McCore Group were the head contractors for the original project and director Mike Gibson says as far as his company was concerned the project had been moving along well when the developer put a stop to the work and then put the property on the market.
“We were pretty gutted we had to finish that concrete and just pull the pin,” he says. He says his company would be happy to finish the job for the new owner.
“It’s a great job, great location, nice finish. It’s not like your run of the mill townhouses, that was something a bit unique.”
An artist’s impression of the modern townhouses that were being built at the site. Photo / Supplied
An aerial view of the site. Photo / Supplied
The five houses were advertised by Liu for sale off-plan in October as price by negotiation and were described as an enclave of luxury residences in the heart of Orakei.
“Intelligently designed with meticulous detailing and pet-friendly green spaces, combined with a community focus and city connections, Orakei Rise is detailed with premium materials and fittings throughout, offering the comfort and flexibility you would expect to find in a quality contemporary home.”
Key features included they were to be standalone and freehold with architect-designed kitchens and high-end appliances. Each would have three or four generous double bedrooms and a 10-year Master Builder Guarantee.
Gibson says McCore Group has plenty of other projects on the go but says there are significant issues facing the sector around how developments are set up and run.
“We’re actively trying to work with stakeholders that are interested in bettering our industry.”
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