A Merivale property for sale in “as is, where is” condition proved a hit with developers looking to “detonate and start again” and fixer uppers when it sold at auction last week for close to $2 million – much more than what the property’s elderly owners were expecting.
The three-bedroom home on Clissold Street, in Merivale, Christchurch, was snapped up in less than a fortnight, with the Harcourts auction held on Friday attracting some 40 people, 10 of whom were bidders.
The property had been damaged in the 2011 Christchurch earthquake, with Harcourts auctioneer Mark Morrison telling the bidders “it might be the case of detonate and start again”.
The vendors had brought the auction forward after accepting an offer of $1.5m. Listing agent Jayne Martin said competition for the property was “robust”, with two buyers going at it like “hammer and tongs” at the end.
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The house, which sits on a flat 776sqm section, was scooped up by a developer for $1.91m – $110,00 above the RV and $660,000 more than what the vendors paid in 2008.
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Martin said the auction showed developers were on the hunt for well-located properties. “My phone did not stop ringing on that property. For it to go $410,000 over the [reserve] was just phenomenal.”
She said the buyer planned to demolish the house and would likely replace it with townhouses.
The property isn’t the only “as is, where is” house to hit the market in Merivale. A 1930s cottage in neighbouring Rochdale Street is due to be sold at auction on September 11, and is likely to attract some of the same bidders.
Falling interest rates appear to have spurred buyers into action this month. Another “as is, where is” property on a large 829sqm section on two titles on Circuit Road, in Merivale, also felt the heat at Harcourts Gold’s auction room on Thursday.
Bidding kicked off at $800,000 and quickly escalated to $1.42m before the hammer came down.
Morrison said there were about five interested parties at the auction, but only two bidders put their hands up. The eventual buyer tried to take out the competition early, but had to fight to keep a hold of the property.
The Clissold Street home is likely to be demolished and replaced with townhouses. Photo / Supplied
A modern post-quake home on Clyde Road, in Merivale, sold for $2.47m at auction. Photo / Supplied
Also smashing expectations was a modern, five-bedroom home on Clyde Street, in Fendalton. It sold last Thursday for $2.47m – $120,000 more than what the vendor expected and more than half a million dollars above the RV.
Morrison said: “It was a long auction, and there was a lot of back and forth.”
He believed the house commanded a good price because it was built after the earthquake, had a swimming pool, and was in a good school zone. “Burnside High and Christchurch Boys and Girls – I call it the golden triangle of school zones.”
Morrison said he had noticed a bit more competition among buyers, with seven of the 14 auctions at the Harcourts Gold auction room on Thursday having two or more bidders.
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