A run-down property on Auckland’s dress circle Paritai Drive, on the market for the first time in 70 years, sold under the hammer for $5.45 million, $2.45m above its 2017 council valuation.
The agents marketing the 1930s English-style house at the city end of Paritai Drive, Bayleys’ David Nightingale and Elisabeth Hampson didn’t need to show bedroom counts or interior shots of the vacant property because they knew it was all about the land.
The house is on 990sqm of elevated land, with grandstand views of the city and Hobson Bay, and had the much-coveted multi-house urban zoning for density.
“The predominant interest was from developers, but there were families who were looking to buy too,” Nightingale says.
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The property had a 2017 council rating valuation of $3m. Photo / Supplied
“We had 14 to 16 bidders in the room and three bidding by phone, one from overseas. In the end there were still five bidders putting their hands up after it reached $5m.”
The agents were not surprised at the price, he said, although there was some scepticism when they appraised the property for over $5m.
“Early on, people were saying ‘no way’. But we proved them wrong. With the right positioning and advertising it will attract an audience; it’s still got the address and the views.
“$4m doesn’t buy you a lot these days. Building a new family residence, it’s a safe bet on this street that when you come to sell [a new house] you’d get $10m or $12m.”
Nightingale says that while he deliberately steers away from speculating what the buyer might put on the site, at least 70 to 100 groups of mostly developers had inspected the vacant property.
The house on 990sqm of elevated land has multi-house urban zoning. Photo / Supplied
“We had some international enquiry, people know the value and that properties like this are few and far between. It had the X factor, a good location, fairly protected city views, elevation.
“The end market could be one big up-market house, or two, or three or more terraces, that’s up to the buyer.” A nearby property of 1429sqm with the same density zoning sold after auction earlier this month for an undisclosed sum.
Just 10 properties worth over $6.5m have changed hands on Paritai Drive in the last 14 years, according to data from OneRoof’s partner Valocity.
Paritai Drive is one of New Zealand's most expensive streets for real estate, and is home to a sprawling mansion that holds the record for New Zealand's biggest residential sale (although the actual street address of the property is neighbouring Hurirao Place - that's how big it is).
2020's most expensive Paritai Drive sale was this house that went for $10.8m. Photo / Supplied
Last year only one top end property changed hands: the former American consulate, a 'do-up' 1940s brick and tile house, was sold by Andrew Wall of Graham Wall Real Estate for $10.8m. The sellers had paid $8m for the grand four- bedroom house on 931sqm with sea views just five years earlier.
The house next door to New Zealand's most expensive home (on right) is expected to sell for $21m. Photo / Supplied
Graham Wall is marketing another property, number 52 that neighbours the most expensive house, and told OneRoof he estimates it will sell for around $21m after a massive renovation that created a practically brand new house.
But developers can be sure of high demand for the luxury townhouses, which are snapped up quickly when they come on the market.
A five-bedroom immaculately presented townhouse of 353sqm sold at auction in March for $4.16m - $1.135m above council valuation. Last year, a 304sqm four-bed townhouse in the same block sold for $3.2m in August, while a four-bedroom Pip Cheshire-designed townhouse with a peep of the sea sold in May last year for $2.55m.
