An empty section close to the beach sold for $2.2 million last week after the buyer increased his bid by a whopping $1m.
The auction for the 809sqm section on Barrowclough Road, in Whangamata, Coromandel, opened at $1m on Thursday, with two buyers each placing bids on it until proceedings hit a pause at $1.2m.
Negotiations with the highest bidder then took place outside the auction room and 32 minutes later the auction resumed with a new bid of $2.2m. The property was then announced as on the market and sold at that price, which was below its $2.8m RV.
Bayleys listing agent Dale Sholson said the gaps between buyer and vendor expectations were often small, but this was a large one.
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The section had never been built on and the sale was a deceased estate. “A tremendous opportunity for someone to land-bank until they decide whether to potentially subdivide or ‘do it once, do it right’ and build a palatial beach home,” the listing said.
Sholson said as was the case with several potential development properties he sold recently, including a tiny bach on a large section on Otahu Road that sold last month for $1.675m, it appeared to be a case of land-banking in the first instance. “It’s kind of a land-banking looking to the future.”
Most people who were either looking or buying had strong links to the town.
“Even if they were people who came 30 years ago, they are sort of coming back and saying I might go here again – this is the place to be. Whangamata is very strong.”
Sholson said they were seeing some tightly-held and unique properties that had been owned by families for a long time suddenly hitting the market and there was big demand for them.
“Whether they are absolutely pristine, large or have a big shed – whatever. Unique in some way.”
People with strong links to Whangamata are buying properties with development potential to land-bank in the first instance. Photo / Supplied
A beachfront property at 106 Pohutukawa Crescent has been in the same family for 55 years. Photo / Supplied
The Barrowclough Road section attracted buyers because it had never been built on before and was located on a lovely cul-de-sac close to the beach.
Another unique property is a seven-bedroom beachfront property with two kitchens and two bathrooms at 106 Pohutukawa Crescent. The property is for sale for the first time in 55 years and is located on a coveted part of Whangamata Beach.
Ray White salesperson Andrew McGee said there was demand for empty sections, such as the one he’s selling on a 361sqm site at 137B Tangaroa Road which has an asking price of $2.4m, because people want to build substantial houses on them.
Because there were not many vacant sites around, they usually ended up having to buy a section with an older bach that they had to bowl before they could start building, he said. It also meant those buyers were competing with other people who were happy to have an older holiday home.
“The old baches do have a value. So, if you are eyeing to build you are paying for that bach even though it may not seem to have much value because it’s so old, it does have a value to someone who wants to use it for their holidays.”
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