A run-down deceased estate in the central Auckland suburb of Westmere sold at auction last the weekend for $1.897 million.
Ray White agent Kane Taylor, who marketed the three-bedroom “ugly duckling” of a property on a 434sqm site on Warwick Avenue, said that the auction came down to two bidders fighting it out for a toehold in the popular street, in a suburb with little ever selling for less than $2m.
The property, which is close to the suburb's rich-lister street of Rawene Avenue, had a valuation of $2.6m.
“We had professional builder-renovators looking,” said Taylor. Most builders estimated buyers would need to spend at least $1m to bring the house up to today’s Westmere standards (four bedrooms, two bathrooms, good living areas and off-street parking), he said, adding that many would-be buyers were not able to lock in bank finance for a renovation project.
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The eventual buyer had been looking for three or four years in the suburb and kept missing out.
“To be able to get something in Westmere for under $2m, even though it needs a lot of work, on the avenues, that’s good.”
Taylor said the 98sqm house was in fairly original condition, apart from old aluminium windows and GIB board that would have to be removed.
The Warwick Street house, which had been in the same family for 70 years, was in need of a drastic makeover. Photo / Supplied
The Warwick Street property was marketed with architect's sketches, with a full makeover these days running to $1m or more. Photo / Supplied
He had recommended the family, who had owned the property for over 70 years, market the place with architect’s drawings to help buyers envisage what a makeover might look like. Under central government’s proposed new density zoning (slated for August consultation by Auckland Council) buyers could possibly add a floor for a “potential sea view”, the agent said.
“A beautifully renovated house in Westmere goes for $3.5m, one on West End Road sold last month for $4m, although it was a larger [720sqm] section.
“There have only been a couple of other do-ups under $2m but they’re on cross-lease sites.
“In the whole of Westmere there are only a handful of do-ups that are left in that state,” Taylor said.
However, this price for a do-up was beaten in March this year when a 155sqm bungalow on neighbouring Dorset Street sold under the hammer for an astonishing $2.53m.
Another do-up, this one on Dorset Street, Westmere, in superb original condition sold in March for $2.53m. Photo / Supplied
The three-bedroom house, still with its original kitchen and bathroom on a desirable 455sqm flat site, had been in the same family since it was built in the 1920s.
Barfoot & Thompson agent Neil Dayal, who marketed the property with Bruce Murtagh, said that the property attracted 10 registered bidders, five or six of them bidding hard, and included a mix of people moving from Point Chevalier and Westmere buyers moving around.
“That’s doing well to get that in any property market,” he said, adding that the unspoilt original features like leadlight windows, original kitchen, immaculate condition, a north-facing back yard and a garage clinched the deal.
Agents for another property over the road at 25 Dorset Street that is coming to auction in June were not prepared to hint where the price might land for the three-bedroom, one-bathroom house. It has polished wood floors, a modern kitchen and bathroom in a close-to-original layout and off-street parking, but is being marketed with consented plans or potential to make other plans. Its 2021 ratings valuation is $2.525m.
In Arch Hill, near Grey Lynn, a three-bedroom cottage sold under the hammer for $1.85m. Photo / Supplied
Buyers with a similar budget are doing better in Arch Hill, a tiny neighbourhood between Grey Lynn and the Northwestern Motorway.
Ray White agents Keith and Sandy Dowdle marketed a tidy traditional three-bedroom, one-bathroom cottage on Commercial Road that sold under the hammer last week for $1.85m.
“In the 15 years we’ve been selling in this area, we’ve found Arch Hill market tends to be very independent of Grey Lynn,” Keith Dowdle said.
“People were going here for a toehold in Grey Lynn, but now it’s getting stronger and stronger as investors get out and owner-occupiers are buying. They’re staying longer and now adding value to their homes, it’s no longer a step on the ladder, it’s got a strong sense of community.”
Dowdle said that buyers who would struggle to find even a do-up in Grey Lynn for under $2m were crossing Great North Road to find nicely refurbished (“not a full renovation”) cottages such as that on Commercial Road.
He added that Ponsonby and Grey Lynn downsizers were also eyeing the area, not ready for apartments but drawn to smaller character workers’ cottages that will give them capital gain.
“The apartments and townhouses are bringing more foot traffic, there’s more amenities, a lovely little coffee shop.”
