A three-bedroom bungalow that's seen better days has sold under the hammer for $2.8 million – more than $1 million above its 2017 rating valuation.
The property at 28 Walker Road, in Point Chevalier, Auckland was bought by a developer who intends to take advantage zoning laws that will allow multiple dwellings on the 723sqm site.
The auction took place outside the bungalow last month, with eight registered bidders all vying to secure the property.
Professionals agent Derek von Sturmer, who brought the listing to market, said the value of the property was in the land.
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“Paying $2.8 million for a house like that sets a new bench-mark for any other developers that are looking in the area,” he said.
There were eight registered bidders competing to buy 28 Walker Road. Photo / Supplied
He said that while homeowners in suburbs may be tempted to do quick private deals with developers trying to circumvent the auction process, they would likely miss out on higher sale prices if they did not.
“If you’re not aware of what the market is actually doing, $2m sounds like a lot for your home but you want to get what the market is prepared to pay, so get it listed,” he said.
The latest OneRoof figures show huge value growth in Point Chevalier: the suburb’s median value has jumped 31 percent in last 12 months ($445,000) to $1.89 million.
The $2.8 million sale has sparked a wave of comments on social media about rising house prices, with some saying “the world has gone mad” and “this city is a joke”.
1664 Great North Road property in neighbouring Avondale sold to a developer for $1.81 million last month. Photo / Supplied
Properties that have large sections and favourable zonings under the Auckland Unitary Plan are in high demand.
A run-down three-bedroom villa at 1664 Great North Road, in Avondale, sold at auction for $1.81 million last month - $595,000 above CV.
Marketed by Ray White agent Jack Lee, the villa was advertised as a “goldmine” for investors or land bankers.
