A heritage villa in Auckland's most expensive suburb and an award-winning house in the city's east both sold at auction for more than $4 million in a sign that buyers are still prepared to spend big on real estate post-Covid-19.
The highest sale price at Bayleys’ auction room today was $4.32 million for a five-bedroom country estate-style house at 249 Point View Drive, in Dannemora.
The property, which won the 2015 Auckland Registered Master Builders House of the Year Award, soared past its 2017 rating valuation of $2.175 million as three groups of bidders fought to secure it. It was marketed by Bayleys agent Angela Rudling along with colleague Michael Chi.
Chi said he was not surprised by the final result as the house was "one of a kind".
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"It's an award-winning design and it's a very rare property in terms of structure and the buyer was very appreciative of that," he said.
Earlier at Bayleys' auctions, a well-presented four-bedroom home at 48 Ardmore Road, in Herne Bay, sold to an Auckland buyer for $4.05 million - $1.35 million above its 2017 rating valuation – after strong bidding from four parties.
Above and below: 48 Ardmore Road, in Herne Bay, fetched $4.05 million - $1.35 million above its 2017 rating valuation. Photo / Supplied
The home was sold by Auckland artist Britt Alpe and marketed for sale by Bayleys agent Edward Pack. In an interview with the Herald last week, Alpe said that her family's transformation of the villa was her "biggest artwork".
"I'm a stay-at-mother and a painter. I work in this space and I surround myself with what is important to me. My focus is light and shade and that has always been my passion. So when we renovated this house I wanted to create a work of art," she said of the home.
While Pack could not disclose the buyers' details, he said the property had attracted families, returning expats and older downsizers.
"There is a healthy level of interest from buyers and sellers who are looking to transact for very genuine reasons. There is continued demand across a wide selection of properties," Pack said.
21/85 Edmonton Road, in Henderson, sold for $295,000. Photo / Supplied
According to data from NZME-owned listing site OneRoof.co.nz, the property last sold in July 2009 for $1.15 million, delivering Alpe a profit, on paper at least, of $2.9 million.
Pack also sold another luxury four-bedroom Herne Bay home for $2.62 million, $300,000 above its 2017 rating valuation. Of the eight properties up for grabs at the Bayleys today, just two passed in. The average sale price was $2.2 million, with the cheapest property a one-bedroom brick and tile unit in Henderson selling for $295,000 - below its $385,000 CV.
The clearance rate at Barfoot and Thompson's auctions across town was slightly lower, although there were more homes up for grabs across a wider range of suburbs, with the real estate agency calling 34 auctions today.
Of the 15 called in the morning, six sold for an average price of $1.59 million, and of the 19 called in the afternoon, 13 sold under the hammer.
Among the highlights at the auction was the $1.71 million sale of a 1960s three-bedroom home at 9 Wendover Road, in Glendowie, which last sold in 2006 for $706,000.
9 Wendover Road, in Glendowie, sold for $1.35 million. Photo / Supplied
Another standout was the sale of a 155sq m three-bedroom home at 7B Keys Terrace, St Heliers, which sold for $1.426 million – more than $300,000 above its CV.
Owen Vaughan, editor of OneRoof, said: "If Auckland auction prices are telling us anything about the state of the real estate market post-lockdown, it's that there are buyers who are willing to stretch themselves - but only for the right home.
"You'd be hard pressed to find a definite pattern among the above-CV sales that have been concluded in the past month. Some of the homes that have attracted strong bids have been in good locations or been presented well. But equally, you'll find fixer-uppers and homes outside trendy inner-city suburbs selling for big sums."
Vaughan added: "Clearance rates are up and down, as well; some auctions are as high as 80-100 percent, while others, with similar stock, are as low as 40 percent.
"Buyers are still out there, though, with mortgage lending in May recovering from the black hole of April. Perhaps the uncertainty is to be expected. The market has only been fully open for a month and a half, and is still trying to find out what the new normal is post-lockdown."
The Real Estate Institute of New Zealand said, according to its data, the median sales price to valuation ratio had picked up after lockdown.
REINZ CEO Bindi Norwell says: "Overall, the metric is starting to show signs of improvement which will be good news for those who are selling, but less welcome news for first time buyers, investors and those who were hoping for a ‘post-Covid bargain’."
"The issues on the supply side will be pushing this figure up, but hopefully this will give potential vendors the confidence they need to list, thereby adding to the supply pool and reducing the shortage of listings."
