A homeowner who turned down an offer of $1.8 million two years ago had no qualms about selling it for almost $400,000 cheaper this week.
Developers battled it out for the corner property on Rangitoto Road, in Papatoetoe, Auckland, and it sold for more than $200,000 above the on-market price.
Ray White Manukau co-owner Tom Rawson said the elderly owner hadn’t been ready to sell when he was offered $1.8m at the peak of the market and was ecstatic with the result.
“The vendor was telling me yesterday, ‘I’m so happy’. It came on the market at about $1.25m and he got $1.431m.”
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He planned to retire in the islands where his money would go a long way, Rawson said.
Before the auction the owner had received offers around the $1m mark. The property, marketed by Ray White listing agent David Ma, has an RV of $1.275m.
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There were 12 registered bidders for the property which attracted flippers, homeowners and developers.
Rawson said some developers were back in the market because they had completed the projects they purchased during the lockdowns and were now looking for the next property to get stuck into.
However, they were being much pickier about what they bought compared with two years ago.
“Last time around everything looked like a development property, this time around I think people are aware that not everything is a development property so there’s been enough people burnt from silly buying that there’s enough caution there.
“Before, anything and everything that had a backyard people were looking at building houses on it, but the reality is there have been a lot of people burnt by the market changes and unforeseen stuff – they didn’t even look at with their due diligence so there’s definitely people proceeding into the market, but with caution.”
A three-bedroom home on Rangitoto Road, known as the Papatoetoe's golden circle, sold under the hammer this week for $875,000. Photo / Supplied
Rawson said Papatoetoe was always popular and Rangitoto Road was deemed a good, central road. It’s referred to in listings as the "golden circle".
Another three-bedroom, one-bathroom brick and tile home also on Rangitoto Road, in Papatoetoe, was also picked up by a homeowner at the same auction for $875,000, just $15,000 over its RV.
Developers were the only buyers who turned up for a property on the other side of the Papatoetoe township at a Harcourts auction last week.
The three-bedroom, one-bathroom home on a 828sqm section on Reseda Place, in Papatoetoe, sold for $1m in a quick auction.
Harcourts listing agent Harsh Kathuria said it went “really, really crazy” and all four registered bidders were purchasing it sight unseen.
Kathuria said the owner was “stoked” with the result, which was a lot higher than what they had been offered privately by a developer.
All the people bidding on Reseda Place, in Papatoetoe, were developers who were buying it sight unseen. Photo / Supplied
Papatoetoe was always the most popular location with developers, followed by Manurewa and then Papakura, he said. They also favoured rectangle sections that were 700sqm or more.
Meanwhile an uninhabitable property on St George Street on a 1429sqm section is also going under the hammer next week and is also expected to attract developers.
The three-bedroom, one-bathroom home at 115 St George Street, in Papatoetoe, is being sold at auction next week with a $1 reserve. The elderly owner is extremely motivated to sell and move to something newer after living in the central Papatoetoe home for 37 years.
In October this year, the owners of a run-down property on Imrie Avenue, in Mangere, were left gobsmacked after a developer paid $1.01m for the 756sqm property. The auction was brought forward two weeks after the beneficiaries of the deceased estate accepted an offer of $702,000 but fierce competition pushed the price up by another $300,000.
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