A fire-damaged home in South Auckland sold under the hammer for $350,000, exceeding the vendors’ price expectations.
The house on Coronation Road, in Papatoetoe, which has a 2021 CV of $770,000 and is attached to neighbouring units, went up in flames in August, with the blaze consuming the upper floors and roof and causing half a million dollars worth of damage.
Ray White listing agent Rubal Singh said the vendors were delighted with the auction result, saying early price indications had been in the $200,000s.
The vendors were investors, and according to OneRoof records, had bought the property in 2021 for $779,000.
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Singh said they were happy to sell for $350,000, having already received an insurance payout for the damage to the home. “They are normal mum and dad investors who had bought this property as an investment. The property was tenanted at the time when the fire occurred.”
He added: “Because the damage was so extensive, they didn’t want to do the repairs to the building. This is not a normal renovation. It is controlled demolition and maybe asbestos, maybe not. There is so much work involved. They just want to sell and just go and buy something else.”
Six cash buyers competed to buy the house, Singh said, adding that it would not have been possible to get a mortgage on the property.
Ray White has sold two other fire-damaged properties in South Auckland in recent months, including one on Gray Avenue, in Mangere East, for $650,000, and another on Lynmore Drive, in Hill Park, for $500,000.
Five of the six bidders for the Coronation Road property had expressed interest in those previous listings, Singh said.
“The buyer intends to bring it back to life and maybe keep it, maybe sell it. He’s not sure at this stage.”
At another Ray White auction this week, a dilapidated West Auckland house sold for $675,500 after strong competition from 23 bidders. “That’s the most I’ve ever seen," said Ray White agent Melvin Plaisier, who marketed the property with Keith Bick.
A dilapidated three-bedroom home on Luanda Drive, in Ranui, Auckland, was pitched at tradies and DIY enthusiasts. Photo / Supplied
Their advertising for the three-bedroom house on Luanda Drive, in Ranui, made no bones about the state of the property: “Dilapidated Dwelling = An Opportunity to Profit."
The agents said it was a court ordered sale, so the property needed to be sold.
While only a few groups came to see the house, some were experienced developers, investors or flippers, so knew what work was required. The tree-lined 670sqm site is zoned for suburban density, and the winning bidder, an investor, plans to renovate the house.
“The layout was fine, so it wouldn’t need consents to gut the interior, put in new gib and an internal refit. It does need a new roof, so you’d be looking at over $100,000 I would say,” Plaisier said.
He said the property, which backs onto a council reserve, had been flood tested and “was positioned in a high and dry setting”.
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