A developer is selling off 18 nearly completed townhouses in one go, with the buyer likely to make a tidy profit if the homes are on-sold individually.
The marketing for 106 Triangle Road, in Massey, Auckland, describes the property as a “cash cow”, and “the bulk buy of the century”.
Ray White Remuera agent Banson Chong, who is marketing the property with sister Cary Chong, told OneRoof the change in the property market means the bulk sale is less unusual than it once would have been.
“Particularly with the high interest rates, there are some developers who are struggling, to be honest. He wants the whole project sold ASAP.”
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The developer got the site in 2021 for $4.7 million already with consents for 18 terrace houses underway.
“They (the houses) are nearly complete and have already passed the final inspection so now we are waiting for the CCC (the council Code Compliance Certificate) and title to be issued.
“Other agents recommended he sell the properties individually, as that way he may make more money in total, but his position was such that he wanted to sell in bulk,” said Chong.
Selling in bulk not only means the seller can give a discount to the buyer but could result in a quick, easy sale of all 18 houses rather than having to go through all the marketing for individual units.
Chong said the price expectation was in the vicinity of $12m to $13m, but he said looking at current market conditions the townhouses could make the buyer $2m to $3m profit if sold individually, and there have already been offers.
The agent says a lucky buyer could make $2m to $3m profit if they sold the townhouses individually. Photo / Supplied
Selling a big project like this was different to selling individual houses as the buyers were sophisticated and very commercially-minded, he said.
“Thanks to our strong wholesale buyer database, so far we have got four-five interested parties and have already received altogether four offers, including one unconditional offer.”
One is a developer looking to buy the whole project and resell individually for profits.
“Another one is from a family who has built significant wealth in property investment who intends to buy it as a long-term option for stable rental income.
“We also have commercial property owners who focus mainly on yields, as it becomes safer to invest in residential projects due to the rental shortage in Auckland.”
The project comprises three blocks of 13 two-bedroom houses and five three-bedroom houses, each with a car park.
They were nicely designed with a contemporary style and a great use of space, and were relatively high specification buildings compared to some other projects being built locally, Chong said.
The developer picked up the site in 2021 for $4.7m. Back then the 2284sqm section was occupied by a single dwelling. Photo / Supplied
“It would be first-home buyer’s dream house. Not only it’s been built nicely, the location is unbeatable, only minutes away from the motorway and also close to schools, shops and green-spaces. Most importantly, it’s so affordable.”
The buyer had many options, Chong said, from rental to Airbnb to selling some units but keeping others.
“It would be a great long-term investment project, too.”
Chong said the developer was hoping to get some money out to fund his next project, adding it’s still tough out there for developers.
“Especially for those entering into the market around the peak in 2021 with high leverage, the holding cost is simply too much for them.
“We will be seeing more and more similar projects being sold on the market, some selling with RC, BC, EPA for debt reduction purposes.”
An older-style house was removed from the site to make way for the townhouses.
When the property was last listed with OneRoof, in October of 2021, the advertising urged developers to take note of the 2284 square metres of premium land in a mixed housing urban zone.
At that stage the resource consent and EPA had been granted with the building consent being processed, according to the listing.
“This is premium real estate and much of the hard work has been done,” Jacqui Ding, of Barfoot & Thompson, had said in the ad.
- 106 Triangle Road, Massey, is for sale by a set date of sale
