The buyer interest expected in an Auckland city property in need of total refurbishment is a sign of a turn in the inner-city market according to the co-owner of Ray White Grey Lynn, Angela Saunders, who is bringing the home to auction.
Saunders told OneRoof that over the last 18 months, do-up properties in Ponsonby, Grey Lynn and surrounding areas were the only bargains in those suburbs, as buyers preferred to pick up completely renovated homes.
She said a property she is marketing in Freemans Bay is a case in point: a famous-in-design-circles 1980s townhouse in 8B Arthur Street by top architect Pip Cheshire.
Cheshire recalled the design of the pair of townhouses, which replaced a borer-ridden villa in the newly gentrifying suburb, as “a furiously angst-ridden reaching out” to all sorts of design influences, saying it harked back to a more experimental time.
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Saunders said the multi-level houses are known as the Vernon houses after their original owners. 8B is the back townhouse of the pair. The property now needs considerable refurbishment and re-cladding to bring it up to standard and is being pitched to downsizers, developers or first-home buyers keen to take on a project.
“But it’s spacious, it’s got massive views from the top levels, unbelievable. It’s a great bit of land, but needs a total overhaul.
“If you are going to invest in a do-up then you want the best location.” The cross-lease property has a CV of $2.35 million.
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Saunders said that do-up properties were “extraordinary value” in a slower market.
“When it’s really hot, the gap between the do-up and renovated homes narrows significantly as buyers struggle to get into the market. Buying a do-up in a slower market means you really get rewarded for the work you undertake,” she said.
But that doesn’t mean any old do-up, she added. Financially savvy buyers are picky about which places are worth putting the effort in, zooming in on good streets with good sun and position, and, if they can, views.
The rear townhouse on 8B Arthur Street, Freemans Bay, featured many of the 1980s favourite design moves – curves, columns and cubes. Photo / Supplied
8B Arthur Street, with its spectacular city views from the upper floor, ticks the boxes for buyers of do-ups, according to agents. Photo / Supplied
Saunders echoed other agents’ sentiments when she said renovation spends can range from $150,000 for a repaint, re-roof and landscape to millions of dollars, but buyers can recoup that money – and more – when they sell.
“The rest of the market has had a more significant price adjustment, and prices [for do-ups] suffered. If you look at Grey Lynn northern slopes they’re cheaper than they’ve been before.
“Renovated homes have gone really well because there are never enough, and they’re always in demand. That means these homes have kept their value,” she said, adding that central city buyers have widened their search to Westmere where there is more stock.
- 8B Arthur Street, Freemans Bay, goes to auction October 18
