- Two Auckland homes sold for significantly more than expected at auctions, despite a 50% clearance rate.
- The Epsom home fetched $2.4m, while the Remuera property sold for $6.6m.
- Strong demand was noted for low-maintenance homes in good school zones, despite a slow market.
Two 1960s homes in Auckland’s golden double grammar zone defied the odds and sold for hundreds of thousands of dollars more than expected at heated auctions this week.
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A tired, single-level brick home on Disraeli Street in Epsom netted $2.4 million at Barfoot & Thompson’s auction room on Wednesday, while a renovated two-storey home spread over two titles on Lucerne Avenue, in Remuera, fetched $6.6m at Ray White’s auction on the same day.
But with overall clearance rates hovering around 50% in the city, the heat on these two properties appears to be the exception rather than the rule.
The single-level brick home attracted buyers looking for a low-maintenance option in Epsom. Photo / Supplied
Barfoot & Thompson auctioneer Marian Tolich said she had a good feeling ahead of the Disraeli Street sale. Ten buyers had registered to bid at the auction – a big number even in a heated market.
“I could see why it had a lot of interest in it. Single level, brick and tile, on its own site.”
The prized school zone was also a deciding factor for the families in the auction room.
Tolich said it was a unique offering for the suburb, noting that it had been owned by the same family for 50 years. “It wasn’t a huge home like you would get in Epsom – those five bedrooms, three bathrooms that grammar zone families would be looking for. I guess it was the fact that it was low maintenance.”
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The auction kicked off at $1.9m, and turned into a bidding frenzy after the auctioneer announced that the property was on the market at $1.95m.
Five buyers put up a strong fight to own the home, but the winning offer – $100,000 above RV – came from a woman who was bidding over the phone. Tolich said the vendors, an elderly couple, were overwhelmed by the result.
She noted that the number of properties selling under the hammer was up year-on-year, and highlighted an uptick in pre-auction offers.
There was strong demand for low-maintenance homes in good school zones, but terraced houses were harder to shift because of how many there were for sale.
A four-bedroom, four-bathroom home on Lucerne Road, in Remuera, attracted five bidders at Ray White's auction on Wednesday. Photo / Supplied
The 1960s home sold for $6.6m following an impressive renovation. Photo / Supplied
Ray White lead auctioneer Sam Steele said the market was improving but “very slowly”. About half the properties going to auction last month had sold under the hammer.
Some, like the renovated home on Lucerne Road listed with Ray White Parnell agents John Q and Bryan Santos, were attracting more attention than others.
The large four-bedroom, four-bathroom home overlooking the Ōrakei Basin sold for $6.6m – just under its RV of $6.64m but more than $410,000 above its reserve – after competitive bidding from five buyers.
“Five bidders registered is always a great indicator of interest – especially at the moment and at that price point,” he said, adding that the average number of people biding at Ray White auctions was 2.1 currently.
Harcourts national auction manager Shane Cortese said while some houses drew in good numbers, a lot were just getting a single bidder who then got first “crack” at it.
“We deal with one bidder – I call it dealing with the best buyer first because the best buyer gives our owner certainty.”
Cortese said both buyers and sellers seemed to be waiting for something better, but those who took the plunge were getting good results.
“The ones that jump – that go OK that’s the market, I’m comfortable, I’m going to move on – are getting some reasonably good results.”
Some that passed in sold quickly after if the vendors were realistic and priced it based on the market feedback, he said, but others where the seller was holding out for a magic number would likely sit on the market.
The seller that had the most success at auction did everything they could to make it for people to buy their home by providing things such as a builder’s report, LIM valuations and a moisture test for plaster home. “They are making it easy for buyers to do due diligence and a very low cost to the buyer.”
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