A development property on Auckland’s North Shore sold for more than $2.6 million under the hammer, nearly twice its 2017 council valuation.
Ray White agent Camilla Geng, who was marketing the property, had over 36 registered bidders for the classic three-bedroom house on Sunrise Avenue in Mairangi Bay.
The house was on the market for the first time since it was built in 1965. But the 832sqm site, close to the popular Rangitoto College and Murrays Bay Intermediate, is zoned for density so attracted developers and land bankers.
The auction was brought forward by a pre-auction offer, after only a week of marketing, of $1.9m.
Start your property search
Before the auction Geng said estimates had put the value at $2.2m but bids quickly shot past that, from both in-person and phone bidders. Competition was fierce, with the last three bidders pushing up in lots of $10,000 once past $2.55m, as Ray White auctioneer Ben East edged bids closer to the winning $2.635m.
Geng said 65 people had viewed the property during its two open homes as there are very few sites available on the popular road.
Over 65 people, mostly developers, had viewed the property in two weeks. Photo / Supplied
“I’d say 98% were developers, and these guys were from all over Auckland, not just the North Shore. From feedback, they are saying they could build four free-standing houses in that zone - they’d rather do that rather than townhouses which make the neighbours unhappy.”
The buyer plans to build new houses on the site, it is understood.
Geng says the vendors were very excited having gone into the auction expecting the $1.9m pre-auction offer. Earlier this year Geng says they had turned down offers in the vicinity of $1.2m to $1.5m from developers.
The site is next to popular Murrays Bay Intermediate school and in zone for Rangitoto College. Photo / Supplied
“I'm already talking with other neighbours in the same street who want to sell. The school zones attract a lot of Chinese buyers, they are keen on the three good schools.”
Developers have already begun demolition on the neighbouring property, and will be building four dwellings on the 830sqm site.
Just up the road, a smartly renovated five-bedroom house sold for $2.205m in February this year.
The 270sqm house on a 971sqm section had a swimming pool and spa, and was bought by a family, but Harcourts agent Michelle Heron, who marketed the property with Gavin Roberts, says the family buyers were competing with developers.
Another property on the same street sold in February for $2.205m. Photo / Supplied
“There was a real variety of people looking. Even for such a good house, developers would have been happy to rip it all out to put in more houses," Heron says.
The pair have just started marketing a three-bedroom former rental house on a 610sqm corner site in Forrest Hill that is zoned for mixed housing suburban and have already had two offers from developers in two days.
“It’s crazy out there, mad, mad, mad. But we’ll be taking this to auction June 13,” she says.
