A partially-developed and consented prime freehold corner site in Newmarket is for sale, with the vendors committed to seeing a result on auction day – or before.
The high-profile block with Business – Metropolitan Centre zoning has a total land area of 1,194sqm spread across two sites on the corner of Kingdon and Short Streets just off Khyber Pass Road, and around 700m from Westfield Newmarket on Broadway.
Resource consent and stage one building consents were granted for a north-facing 11-level apartment complex, orientated to optimise views of Auckland Museum, the Auckland Domain, Waitematā Harbour and Rangitoto Island.
The planned 31-metre-high structure would comprise 84 residential apartments, 86 car parks, and two ground-floor retail units, with an approximate gross floor area of 10,364sqm.
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Initial works were commenced with the foundations being signed off, then the project stalled with the first level partially completed. Around 80 percent of the apartments were sold down from the plans, however with the sunset clause having lapsed, the site will be sold with vacant possession.
The property is being marketed by Owen Ding and James Chan of Bayleys Auckland Central, with the auction set down for 21st August, unless sold prior.
“The opportunity exists to utilise the existing consented plans and proceed by picking up where the current owner has left off, modify the plans and seek new consents, or take advantage of the flexible zoning to undertake an entirely new development,” explains Ding.
“This is one of the last development sites in central Newmarket and there’s strong demand for apartments, as evidenced by the substantial precommitments before the project halted.
“While those agreements are no longer in play, it does demonstrate buyer appetite for well-priced apartment living in Newmarket.
“On pure location this project will work. The development was terminated not through a lack of interest or precommitment, but rather for business reasons associated with the ownership company.”
Ding stresses that the vendor needs to move the property on, with the motivation to achieve a sale extremely high. He says the economic fundamentals are arguably better now for new projects than they have been in the last few years.
“Signs that inflation and interest rate hikes have peaked, material costs have stopped escalating, and migration numbers are trending upwards means fundamentals are lining up for the development sector to play into growing demand for residential accommodation, and/or commercial space.
“This opportunity will resonate with both well-capitalised developers wanting to get underway ahead of the next property curve, or landbankers who would prefer to ride out the current market.
“A new owner may have an alternative idea for the site – including, but not limited to, hotel, office or a mixed-use development – which the favourable Business – Metropolitan Centre zoning encourages and supports.”
The development site falls within the coveted double grammar school zone, has easy access to arterial routes and motorway connections, is within walking distance of Newmarket and Grafton railway stations, and handy to Westfield and the main Newmarket commercial centre.
There is other high-profile residential development underway in Newmarket facilitated by market heavyweights, which further underscores the value of the subject property which aimed to offer apartments at an affordable price point.
“The former seven-storey office headquarters of insurance firm Fidelity Life in nearby Carlton Gore Road is being converted to a luxury apartment building, spearheaded by Precinct Residential as part of its push into the living sector and demonstrating confidence in Newmarket as an attractive city-fringe location.”
- Supplied by Bayleys
