The $9.28 million sale of a property on the street abutting one of Auckland’s most prestigious drives is not enough to help alleviate the demand for eight-figure properties in the city.
Bayleys agent Sarah Liu, who marketed the tired-looking, mid-century, three-bedroom property on Karori Crescent, a block away from Paritai Drive, told OneRoof that she still had buyers with $10m, some up to $20m, to spend on Auckland property but they were not finding what they want.
“Buyers in that high end, they’re not affected by the market. It just depends on how much the buyer likes the property. They don’t rush in, they’re just waiting to buy the property they like.
“Yes, they’ll think of the market and the price, but it’s not because they have a limited budget. It’s got to have the right look, they’re very particular they just want it perfect.
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“I’ve got people who can put an offer on paper, it just has to be right.”
A 1930s house on a development site on Auckland's rich-lister Paritai Drive, Orakei, re-sold for $5.45m in August. Photo / Supplied
Liu said there were buyers, who had missed out on the Victoria Avenue mansion that sold in October for over $24m, now negotiating on other properties.
“We’ve still got buyers at that level. Right now, New Zealand feels less messy, people feel safe,” she said.
Records show the vendors of the Karori Crescent property had paid $7.17m for it in April last year, making a profit, on paper at least, of $2.11m in 17 months.
The appeal was not in the house itself, but the potential of its nearly 1200sqm site, on a corner site within walking distance of the sea, to build a dream home.
“Neighbouring homes fetch upwards of $10m, the buyers are not looking for development but to build their luxury family home,” Liu told OneRoof.
Liu also re-sold another property on the city-end of Paritai Drive, a vacant 1930s house, for $5.45m in August.
A house on Karori Crescent that sold for $8.5m in November last year is being replaced by six luxury apartments. Photo / Supplied
That house had hit the headlines in June last year when it went on the market for the first time in 70 years, selling under the hammer for $5.45m, after furious bidding by 14 to 16 bidders.
At the time, the agents marketing the property, Bayleys’ David Nightingale and Elisabeth Hampson, told OneRoof interest had mainly come from developers, drawn to the elevated 990sqm section with grandstand views of the city and Hobson Bay, and its much-coveted zoning for urban zoning density.
The vendors decided not to go ahead with their project, but this time the buyers planned to land-bank the property to eventually build their own house, Liu said.
Liu said buyers with $10m or $20m budgets were waiting for the right combination of property – and the “good street, beautiful views, fantastic location” combination of Paritai Drive fits the bill.
Developers on the rich-lister strip of Orakei are confident they will have buyers for their luxury properties. Building is already underway for six luxury apartments on another 834sqm site on Karori Crescent, that Liu said could find buyers happy to pay as much as $8m to $10m for the right penthouse, or at least $4m to $5m for the lower floors, depending on the view.
Liu currently has another listing at 9 Karori Crescent, which has a ratings valuation of $10.4m. Although billed for its Versace-type Hollywood glamour styling, the 613sqm six-bedroom house also sits on a valuable 885sqm site zoned for urban density.
However, not all properties zoned for density are being developed, as there are buyers still keen on single family homes.
A brand-new house at 28C Ronaki Road, Mission Bay's most expensive street, being sold with the adjacent land at 28D Ronaki Road is likely to fetch $13m. Photo / Supplied
In Mission Bay, the owner of a pair of properties at 28C and 28D Ronaki Avenue zoned for urban density chose to build a luxury five-bedroom, 511sqm house on one of the properties and is now selling the house and section next door, a total of 1200sqm, with a set sale closing this week.
Liu said there was consent for a swimming pool for the new house at 28D Ronaki Avenue, but a buyer may choose to buy the second 587sqm site at 28C to add extensive grounds, pool and landscaping. She said the new house, on 600sqm of land, would be upwards of $8.5m, while the pair of properties would be closer to $13m for the rare 1200sqm estate.
“They have a combined CV of $8m, and that’s without the house. It’s the most expensive street in Mission Bay,” she said.
She added that another development property she has listed, a six-bedroom villa on 48 Shelly Beach Road, St Marys Bay on a 1034sqm site zoned for urban density, would likely be too valuable to turn back into a luxury family home. It is currently split into five flats.
“It’s a premium location, 280-degree views of the harbour bridge to the Sky Tower. It has a good stable income of $120,000 so a long-term investor would land-bank it for long-term development,” Liu said. The property has a set sale date closing November 29.
