Pukekohe has reinforced its reputation as one of Auckland’s most sought-after development hot spots with a four hectare site on the town’s south western boundary selling for $13.2 million just before Christmas in Bayleys’ highest value auction sale of 2021.
Located in Rowles Rd, the 40,439 sqm site was amongst 61.5 ha of land suitable for housing development on the outskirts of Pukekohe sold last year by Bayleys at a total value of $107.66 million.
The Rowles Rd property, which has been in one family’s ownership for the past 27 years and is currently used for vegetable growing, went under the hammer in Bayleys’ Pukekohe auction room on December 21, with bidding starting at $8 million (inclusive of GST).
That price quickly increased to $11 million in the space of nine bids with 17 further bids taking it to $12.15 million, with two parties in the auction room competing with a telephone bidder watching on Bayleys’ Auctions Live site.
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A single bid then raised the price to $12.7 million at which stage the bidding was paused. Following negotiations, that bid was raised to $13.2 million and the property was sold under the hammer at that price to a developer. Settlement of the sale will take place in June.
Bayleys’ Pukekohe-based senior commercial broker Shane Snjider, who marketed the property with Peter Sullivan and Krisitina Liu, says the land has a Residential – Single House zoning which will enable multiple standalone dwellings to be built on the site.
Hs says the flat, rectangular-shaped site is ideal for a residential subdivision with its three street frontages providing multiple potential access points. “Its existing residential zoning means that development can get underway once the necessary council consents have been granted and it’s in an area that has already has an established residential infrastructure in place.
“A substantial amount of new housing construction has recently been undertaken on the other side of Rowles Rd surrounding Coverlea Recreation Reserve and there are two schools and an early childcare learning centre nearby.”
The Rowles Rd transaction followed a similar property also auctioned last year by Shane Snjider at 290 Victoria St West, Pukekohe selling under the hammer for $9.66 million including GST, also to a developer. The property was declared on the market at $8.5 million and further bidding competition pushed the final sale price up another $1.16 million.
The 4.3504ha site, also currently used for vegetable growing and with three street frontages, is located opposite a recently developed housing subdivision with a new school nearby. Snjider says the property’s Future Urban zoning means there needs to be a unitary plan change before it can be developed. This accounted for the price differential between this and the residentially zoned Rowles Rd property.
Snjider and Peter Sullivan have also sold three larger Future Urban zoned properties in Pukekohe at a combined value of $78 million plus GST if any. These transactions encompassed two sites on Golding Rd of 21.5ha and 9ha and 18.2ha on Pukekohe East Rd opposite the Anselmi Ridge residential development.
Snjider says land zoned Future Urban on the outskirts of Pukekohe has been identified by Auckland Council as being suitable for future more intensive development predominantly to provide housing but also to include commercial and community amenities.
“Depending on how quickly Pukekohe, which is absolutely thriving at the moment, continues to grow, it is anticipated these areas will be up for a plan review between 2023 and 2027.
“Purchasers are happy to sit and wait until this happens. It’s the classic property investment strategy of investing on the fringe of a growing, well established urban area and waiting for the development to come to you. At that stage you can then decide whether you resell with the new zoning in place or develop the land yourself.”
Snijder says Auckland Council is having to tread a fine line between providing adequate housing for the substantial population growth that is occurring in and around Pukekohe without encroaching too much into the renowned vegetable growing land close to the town.
“As a consequence, the supply of development land in and around Pukekohe will remain very, very tight which is why sites with these favourable zonings are generating so much interest and competition amongst buyers.”
Bayleys’ Pukekohe and Takinini offices were also involved in a range of development site sales in other parts of South Auckland in the latter half of 2021 including:
-29.7866ha of elevated land offering panoramic views at 616 Drury Hills Rd, Drury sold by tender for $12 million plus GST if any by Peter Sullivan, Shane Snjider and Krisitina Liu. The property has a resource consent for subdivision into 27 lifestyle lots.
-4.287ha at 101 McRobbie Rd, Kingseat sold under the hammer at mortgagee auction for $8.45 million including GST by Shane Snjider, Michele Mathieson, Peter Sullivan and Kristina Liu. Zoned Residential – Single House, it has a scheme plan for subdivision into 64 lots.
-5388 sq prime corner site at the intersection of Great South Rd and Manuroa Rd, Takanini, marketed by Peter Sullivan, Shane Snjider and Kristina Liu, sold at auction for $8.3 million plus GST if any. The property encompasses seven sites, six two- and three-bedroom houses and one car yard, approximately 100m from the train station. Its Residential – Mixed Housing Urban zoning allows for development up to three storeys.
Peter Sullivan says Takanini has also become a hotspot for new housing and commercial and industrial development over the last two to three years.
“Takinini is attracting a lot of young couples and families with its good mix of terrace and standalone homes plus new schools. People love the brand new Takanini village and the supercentre, Takanini is very easy to drive in and around, there’s good parking and it also offers excellent public transport options – particularly the southern line train service to and from Auckland CBD.
“It’s turning into a nice little village which is going through an exciting growth phase and that’s dragging a lot more development money here.”
- Article supplied by Bayleys
