A deceased estate in Auckland’s Whangaparaoa Peninsula was the standout property at Barfoot & Thompson's auctions this week, with a “swag of bidders” driving the sale price to $4.15 million – more than $1.5m above CV.
The four-bedroom 1970s house on Matija Place, in Red Beach, sits on a 7894sqm largely empty section that is zoned single house, meaning intensification is mostly off the table.
But that isn’t the only surprise, as the sale had a strong whiff of deja vu about it. The property went to auction as a deceased estate in April last year and sold for $5.9m. The same agent handled both sales, but when approached by OneRoof for comment on Wednesday, he declined to comment.
Murray Smith, who called this week’s auction and the one in April 2022, said there was “a swag of bidders, easily five, possibly more” competing for the property.
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“There was a lot there who were not active bidders. It was a strong opening bid [of $3m], so that would have put a few off at the start. A big tract of land like that is going to be interesting,” he said.
The property was declared on the market at $4m, three minutes after the auction started, and two more bids came in before the hammer fell at $4.15m.
Listing agent Alan Vessey, who marketed the estate on behalf of the Public Trust, had told OneRoof after the 2022 auction that some 50 developers had shown interest in the site and that 17 buyers had registered to bid.
“It was just the perfect storm. We shot past the reserve of $3.2m with eight bidders still going,” he said last year, adding that the result had “blown away” the vendors and the valuer, who had helped set the reserve.
“There are only a few sites this big around Red Beach. The owner has had it for over 40 years and died last year [2021] aged 93. The money will go to the Charitable Trust, which supports various charities around Auckland.”
Vessey had declined in 2022 to disclose the identity of buyer or their plans for the property, but did point out there was a strong market for new homes in the area. It is not known why the property returned to market or what happened with the previous sale.
The property’s zoning would prevent a buyer from building multiple homes on the land as it currently sits, but the section could be subdivided and more individual homes built on each title.
The 7894sqm property is surrounded by a subdivision of new houses that sell for more than $1.5m. Photo / Supplied
The Matija Place property is minutes from the Orewa River estuary and the Hibiscus Coast village. Photo / Supplied
It is possible bidders at this week’s auction were banking on Auckland Council’s Plan Change 78, which would allow intensification in response to the Medium Density Residential Standards and National Policy Statement – Urban Design. The plan change would allow for intensification within certain rules on most urban sites without additional resource consent.
Auckland Council sought approval to delay Plan Change 78 as a result of weather events in January and February 2023. Should the plan change be implemented, it would make it easier to build density housing in parts of the Whangaparaoa Peninsula.
Harcourts agent Chris Triscott, who has two sections for sale in Whangaparaoa Peninsula, said developers were currently weighing up their options.
His listing at 20 Melandra Road, in Stanmore Bay, could be subject to intensification, and he has available for download a PDF outlining the proposed zoning changes and a “redefinition plan” from local surveyors.
The 1029sqm site at 20 Melandra Road, in Stanmore Bay, is for sale for $1.3m. Photo / Supplied
“We’ve had an array of people looking at it. We’ve had developers, and then we’ve had the general public just looking for a new build opportunity,” Triscott said.
“GJ Gardner have a house and land package on the one at Melandra. It’s priced pretty highly because our vendor knows that once Plan Change 78 kicks in there’s a possibility that it can be subdivided. It’s going to add value if that decision is made.”
He said he’d seen plans for a 809sqm site in the suburb that had 12 houses drawn up in anticipation of the plan change. “So some developers are just waiting.” Triscott did point out that nothing was guaranteed.
Another section at 100 Voyager Drive, Gulf Harbour, wouldn’t have the same development opportunities even if the plan change went through, he said.
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