The Prime Minister has put a fixed price of $945,000 on the Auckland investment property he is trying to sell.
Christopher Luxon’s tidy two-bedroom 96sqm brick and tile unit, in Onehunga, first hit the market on July 24 and was initially listed for sale, with a deadline of August 6.
The agents marketing the property declined to say why Luxon had changed tactics, but the asking price indicates how much he expects to make from the property.
Records show Luxon took over the property title in November 2015, with Stuff reporting he paid $650,000 for the unit. If the property sells at the $945,000 asking price, he stands to make a gross profit of $295,000.
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The asking price is $205,000 below the 2021 CV of $1.15 million, which suggests Luxon is aware of the downward shift in the housing market.
OneRoof has decided not to publish the street address or link to the listing for privacy reasons. The listing, however, states the house is Healthy Homes Compliant, and has a modern kitchen and two toilets.
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The agent’s marketing says the “home is perfect for first-time buyers, downsizers, or anyone seeking a low-maintenance lifestyle in a prime location”.
The listing photos show a well-maintained fresh-looking home.
Luxon owns several rental properties, a holiday home on Waiheke Island and a family home in Remuera.
Last year, in the run-up to the election, he told Q+A host Jack Tame that his investment portfolio did not affect his judgement on housing policy and that he had been upfront with Kiwis on the number of homes he owned.
Christopher Luxon owns several rental properties. Photo / Mark Mitchell
Luxon’s National-led Government has brought back interest rate deductibility for property investors and reduced the bright-line period from 10 years to two. The latter change does not impact Luxon’s property, which was bought well before the Labour Government extended the bright-line test.
Luxon is selling in a subdued housing market, with the latest OneRoof figures showing Auckland’s average property value fell 2.4% in the last three months and Onehunga’s dropped 7.2%.
While first-home buyers are the most active group in the market right now, investors have started to show renewed interest in buying.
Wayne Shum, senior research analyst at OneRoof’s data partner Valocity, said properties that appealed to first-home buyers and investors would likely see a price boost.
But properties with investor-only appeal were struggling. “Investors are only looking for bargains – they’re not going to pay top money,” he said.
Ray White agent Rohan Thompson, who sells in Onehunga, told OneRoof there was good buyer activity for properties priced from $600,000.
He said he sold one property last week for $1.05m after multiple offers and at a recent auction he had four bidders for a property, which ended up selling for $1.6m.
He said most of the buyers in the Onehunga market were owner-occupiers.
Properties were generally selling for below CV, he said. “Vendors accept that. They know these CVs were [done] in 2021 at the peak,” he said.
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