The shift to a level three lockdown in Auckland does not appear to have dented buyer enthusiasm, with agents reporting strong bidding at online auctions on Tuesday and Wednesday.
The first round of Covid-19 restrictions in March and April saw real estate agencies embrace virtual open homes and online auctions, so were prepared to handle the quick change in trading conditions.
Most if not all of the scheduled auctions for this week have been called online, with bidders submitting offers online or by phone.
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Just after the level three restrictions came into force at noon on Tuesday, Barfoot and Thompson sold a renovated house in Auckland’s desirable double grammar zone for $3.69 million – almost $1 million above CV.
The four-bedroom house at 7 Cedar Road, in Epsom, came with an outdoor pool, three living rooms and office. According to OneRoof data, it last sold in April 2010 for $1.33 million, handing the vendors a profit, on paper at least, of $2.36 million.
Cheryl Martin, and Kelly Zhang, who marketed the property, said they had fielded enquiries from ex-pats in Melbourne, Singapore and London, as well as Kiwis who had recently returned to New Zealand.
The house had attracted 83 groups through the open homes, nine of whom registered as bidders. “The auction was speedily arranged to be virtual, with a lot of people watching online. In the end, six bidders made offers,” Martin said.
Strong bidding: 2 Aumoe Avenue, in St Heliers, fetched $3.9 million at auction yesterday. Photo / Supplied
“That means there are eight people who still are looking in that $3 million plus price range. They are still out shopping, waiting to see what the next few weeks bring,” she said.
Barfoot & Thompson auctions manager Campbell Dunoon told OneRoof he’s been happy with the results of the online auctions so far. He said sales people at the agency started working the phones and placing bids for buyers less than two hours after the lockdown began.
“We had a smooth transition because of all the hard work we’d done last time. We just slipped into level three,” he said.
Dunoon is confident bidding will be strong for the slate of properties currently on the market. So too are Barry Thom and Grant Lynch, directors of UP Real Estate. Both said the market was still competitive. At the company’s online auction yesterday, five buyers battled it out for a house at 2 Aumoe Avenue, in St Heliers, with fierce bidding pushing the sale price to $3.9 million - $200,000 above the 2017 CV.
22 William Avenue, in Greenlane, sold for almost $1 million above CV. Photo / Supplied
Thom says the heat is being felt at the bottom and top of housing market. “We also sold another property for $800,000, way over the reserve, so that tells you,” Thom says.
“It’s interesting - this happened in lockdown last time, too. Buyer interest in property didn’t wane, in fact it went up. People still need to buy a house.”
Bayleys national auction manager Conor Patton said excitement at his lockdown auctions had been palpable despite no buyers being physically in the room.
At the auction for 22 William Avenue, in Greenlane – a modest 1930s home on an 806sqm site zoned Mixed Urban Housing – six bidders drove the price to $2.4 million, $855,000 above the CV.
In neighbouring Remuera, a 1970s house on 930sqm section sold for $3.151 million. The double grammar zone property at 27A Portland Road hadn’t been on the market in 44 years and had a CV of $2.575 million. Nine bidders registered to compete at the online auction, called by Ray White Remuera. Agent Steve Koerber, who marketed the property along with colleague Margaret Simpson, said that six of bidders had been “on the circuit” looking for houses in the $2.5 million to $3 million price bracket for months; one had even been looking for over two years.
27A Portland Road, in Remuera, fetched $3.175 million at auction. Photo / Supplied
“It’s so different from 12 months ago. Buyers have turned around completely. In the end, the last two bidders were going up in $1000 bids.”
Harcourts national auction manager Aaron Davies said this week had been his busiest in 18 years – he had 11 auctions scheduled for Thursday and another 11 pulled forward for Friday.
There’s a clear sense of urgency, he said.
“The buyers I’ve talked to want to secure something now, before we go into alert level four and they are unable to physically inspect homes they are interest in.”
He added: “People are not scared of Covid anymore. We’ve done it before, we’ll come out on the other end.”
