The owner of a solid brick-and-tile in South Auckland is willing to cut a deal on the property he bought a year ago for $855,000.
Barfoot & Thompson agent Mohammed Khalid told OneRoof the property at 51 Allenby Road, in Papatoetoe, was seriously on the market for sale, and he invited buyers to make an offer, noting that it would almost certainly sell below CV.
The property is one of a growing number of listings in the city to show their hand on price after failing to find buyers through other methods of sale.
The three-bedroom home had been listed for sale with a different agency earlier this year and had been due to be auctioned, but changed tactics in the face of a softening market.
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Khalid told OneRoof: “With things being a bit slow at the moment, this is a great opportunity for somebody to get a good deal. Our vendor bought it early in 2023 and he will be happy to meet the current market and accept a fair price."
He added: “It needs some work but it’s solid and the freehold land size is generous. Allenby Road is a good street."
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OneRoof records show the vendor bought the property in January 2023 for $855,000. The current asking price of $879,000 is $11,000 below the 2021 CV.
First-time buyers – especially those with families – could find plenty to appreciate in the property. It has three bedrooms, an open-plan living and dining room, a heat pump, and a contemporary-looking kitchen.
The vendor said the property’s proximity to Waenganui/Allenby Park – across the road – was a big drawcard. “It’s good for family people.”
He told OneRoof he hadn't been able to proceed with his original plans for the property, but he had found the site’s versatility very attractive.
The three-bedroom, one-bathroom property has a 2021 CV of $890,000.
Barfoot & Thompson agent Mohammed Khalid says: “It needs some work but it’s solid and the freehold land size is generous.”
The house itself sits on a level 524sqm section zoned for development.
Khalid said a potential buyer could replace the existing house with two or possibly more new dwellings. He also flagged the property's benefits to investors, noting that demand for rentals in the suburb was strong.
Last month, OneRoof reported that more than one in 10 homes listed in the six months since November 2023 had reduced their initial sale price to meet the market.
The average price drop was $74,000, although some vendors cut their asking price by as much as $1m, giving some buyers a chance to leap into homes and suburbs they would have previously viewed as too expensive.
The majority of price realignments (60%) were outside of Auckland, and at the sub-$1m end of the housing market, with entry-level buyers enjoying average discounts of between $23,000 and $64,000.
While more than half of the Auckland homes listed for sale since November 2023 had search prices of less than $1m, the city had fewer options for buyers whose budgets maxed out at $750,000 or $500,000.
Less than a quarter of the city’s listings expected to sell for less than $750,000 and fewer than 5% had a search price of less than $500,000. Canterbury had the most sub-$500,000 options (1800), reflecting the overall lower price point of the region.
Last week, Housing Minister Chris Bishop said house prices needed to fall to improve affordability in New Zealand.
“Average house prices to the average household income are too high by any objective measure. They are severely unaffordable by international standards,” he said.
His comments came as a new international report named Auckland one of the least affordable cities for housing. The Demographia International Housing Affordability report for 2024 said Auckland had a "severely unaffordable median multiple of 8.2", meaning house prices were 8.2 the median household income.
The report found that the "middle-class is under siege principally due to the escalation of land costs. As land has been rationed in an effort to curb urban sprawl, the excess of demand over supply has driven prices up".
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