A property trader bought one of seven uninhabitable homes that hit the Wellington market in January as part of a liquidation sale.
The near-derelict three-bedroom house on Frederick Street, in Avalon, Lower Hutt, was picked up last month for an undisclosed sum.
Tommy’s agent Jason Lange said interest in the property had been high.
“It was super popular. It was super competitive. There were a few low offers but most of them around the eventual sale price,” he said.
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“It was really close between the top five. We had about 50 groups through [the open homes] and to get 17 offers is a pretty impressive conversion rate.”
Lange would not divulge the sale price but said it was a “fair assumption” it was below the 2021 RV of $610,000.
The Frederick Street house was previously owned by Wellington-based property firm Shazwal Investments, which went into liquidation in September last year.
It and six other Wellington properties in the company’s portfolio were sold off by the liquidator.
Shazwal Investments, whose sole director was Sharon Scaife, had purchased the properties with the intention of renovating them. They had a combined value of more than $10 million.
Lange told OneRoof that the properties were in various states of disrepair, but were not beyond saving, and would most likely suit builders or traders.
Most of the interest in Frederick Street, which was missing internal walls, came from traders, he said, adding that that buyer group seemed to be really active in the Hutt.
The home for sale at 304 Oriental Parade, in Oriental Bay, had been abandoned for at least a decade. Photo / Supplied
Lange said that such buyers knew what to do to give the property “a great big birthday inside” – painting, re-lining, doing the kitchen and bathroom, insulating the roof – but that costs would vary depending on the resources the buyers could call on.
“That location lends itself to the family market, it’s close to schools and parks,” he said, adding that a similar family home could fetch mid to high $800,000s when done.
“Given the location of it, the end purchaser is going to do a big renovation on it and relist it. It was too good to be a bowler.”
Lange said the remaining six other properties in the portfolio all had offers on them, and he was expecting a few more to sell soon.
The portfolio includes an abandoned stately home at 304 Oriental Parade, which had been the subject of complaints over its neglected state, and the semi-complete house next door at 1/302 Oriental Parade.
The property at 1/302 Oriental Parade was billed as a “blank canvas awaiting the strokes of renovators, builders and interiors to complete the interior”. Listing photos of the five-bedroom home, which has been re-clad and re-roofed, show it has spectacular views, but no floors, wall or ceiling cladding. It has an RV of $1.83m and records show it last sold in 1997 for $550,000, while 304 Oriental Parade has an RV of $4.12m, largely due to its $4.1m land value, and was bought by Shazwal Investments for $1.28m in July 2004.
The property for sale at 1/302 Oriental Parade has been re-clad and re-roofed. Photo / Supplied
Another pair of properties in Brooklyn – a home and income at 70 Mitchell Street, which has an RV of $1.41m, and a neighbouring three-bedroom, two-bathroom house at 72 Mitchell Street, which has an RV of $1.43m – is also marketed as having renovation potential. The listing photos show black grime in the kitchen, peeling wallpaper and stained carpet.
Lange said last week’s decision by the Reserve Bank to hold the Official Cash Rate at 5.5% should give buyers more certainty around interest rates.
“There’s a lot of stock at the moment, but we should see that peak. Through until winter we’ll likely be selling more than we’re listing. In February our Wellington office sold 30% more than in February 2023, and we’re still getting a lot of multi-offers.”
Renovated homes in Wellington, even at higher price points of more than $2m, are finding buyers.
Bayleys agent Ben Atwill, who recently closed a tender for over $2m for a stylishly renovated five-bedroom house on Waitoa Road, Hataitai, said that in the three-and-a-half week campaign, over 70 groups went through the house.
70 and 72 Mitchell Street, in Brooklyn, are being sold off as part of a liquidation sale. Photo / Supplied
“It was hotly contested, it was a family house that ticked a lot of boxes and didn’t need work.
“People are very educated, they know where the market sits,” Atwill said, adding that two other sales in the area listed by other agents sold for similar price points, suggesting high demand.
“The buyer pool was going between all three.”
However, he said that Wellington buyers were way ahead of vendors in terms of understanding where the market prices were. “Vendors are looking back to prices from 18 months ago, saying ‘that’s what we want’. It’s very hard to stomach that has changed.”
Atwill said homes with ‘distinction’ in the $3m-plus price bracket were selling well because they rarely come up, but at the other end of the market, it was more of a “grind".
“The apartment market has dried up, mainly because of insurance costs and parking is a huge issue. Homes that have everything done are popular, people don’t want to buy someone else’s issue.”
Owners of 10 Hay Street, in Oriental Bay, are asking buyers to "forget all past expectations". Photo / Supplied
Popular with potential buyers is this beachfront home at 16 Bothamley Lane, in Titahi Bay, which goes to auction on March 14. Photo / Supplied
Atwill said that after never being an auction town, Wellington vendors and buyers were coming around to buying places under the hammer. He is marketing a stylishly updated five-bedroom villa at 10 Hay Street, in Oriental Bay, which will be auctioned March 14.
“Auctions have been quite rare in Wellington for the past decade. But we’ve had to be agile in the past 12 months because tenders were not yielding the contenders.
“An auction has a proven transparent process, and Bayleys has a great success rate because you can see everything in front of you,” Atwill said.
Atwill is bringing another unusual property to the same auction.
The modern three-bedroom house designed by architect Tim Nees at 16 Bothamley Lane, in Titahi Bay, has been drawing huge interest.
“We’ve had droves coming out from Wellington. Yes, it’s Porirua city, and 25 minutes out of the city, but it’s lifestyle, it’s got a grass tennis court. We’ve got enquiry over $1.7m,” he said of the property, built in 2006. It has an RV of $1.66m.
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