A multi-million-dollar house that sold in July for well under CV was a classic case of out-of-whack council rates valuations muddying the water, Barfoot & Thompson agent Paul Neshausen told OneRoof.
The property, on Riddell Road, in Glendowie, Auckland, sold to expats for $6.2 million despite a much higher CV of $7.6m.
Neshausen said the 2021 rating valuation was not reflective of market value, adding the 1980s house was architecturally timeless and had world class sea views.
He said he had sold properties 20% under CV and other properties 100% over CV, which goes to show CVs were not always where they should be in terms of the actual housing market.
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He said council staff do not go and look at individual properties when setting the valuations which they use for the rates bill. “They don’t know if it’s old, renovated, sea views have been blocked, there’s none of that. It’s a sundry increase on whatever the CV was two or three years ago,” he said.
Most people want a higher CV, though, he said. While they may pay a little more in rates the positive comes when the time comes to sell.
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Neshausen said the house on Riddell Road had a lot of interest because it was a beautiful house with amazing sea views and offered privacy, a great location and security, but it had stayed on the market for several months, with the listing blurb declaring: “Overseas Owner Demands Sale!”
The vendors were Americans who had modernised the inside a little and when expats moving back from China came across the house, the deal was done quickly.
“It was just starting to get sticky, and then it sold, arguably within two weeks because that’s how long it took the buyers to see it and buy it,” Neshausen said.
The Riddell Road house has clear views of Auckland Harbour and Rangitoto. Photo / Supplied
He described the house as a forever home that won’t date with big picture windows, a heated pool and “wow factor”.
Neshausen is also selling two apartments in a new luxury apartment building in neighbouring St Heliers, which he described as a curvy architectural masterpiece.
The apartments, 201/20 Devore Street and 101/20 Devore Street, take up the lower two floors of the Sonata and are the last remaining available apartments in the building, both in the $9m-plus range.
OneRoof featured the building in June this year and Andrew Weipers, of Reside Projects, described it as pushing the boundaries of the traditional square concrete boxes rising around Auckland.
Neshausen said there had been incredible interest in the apartments because the iconic nature of the building means it will never date.
Barfoot & Thompson agent Paul Neshausen is also marketing two apartments with stunning harbour views in the Sonata development. Photo / Supplied
“If you look at my advertising I’ve said it’s not hip to be square, so those square towers that every developer is building, they look good when they are new and then two minutes later no one looks at them because it’s just another square tower,” he said.
Although he doesn’t “fall in love” with buildings generally, with “this one you can’t help yourself. It’s curvy, gorgeous, and stands out from the boring rest.”
The two apartments for sale have been staged by Studio Italia and the art from Gow Langsford Gallery is the real thing, he said.
“You can buy the furniture and the artwork with the apartment if you like. It’s all been handpicked, and it all works and all the shapes of the furniture are just beautiful.”
Downsizers and corporate couples have shown interest, as have some investors. Some people have said they want it as their base in New Zealand while they travel, and they want the security, modernity and views it offers.
Downsizers in general have a desire to get rid of large family homes they no longer need with 1000sqm lawns to mow but who still want room for family and grandchildren to visit and apartments fit the bill.
The Sonata apartments are just a minute walk to St Heliers Village where there are pharmacies, libraries, doctors, shops and the beach as well as eateries.
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