Developers are desperate to purchase before LVR restrictions kick in next month with two Mangere East properties Developers are desperate to buy before the expected return of the loan to value ratio (LVR) restrictions next month.
Two properties in the South Auckland suburb of Mangere East attracted 156 bids between them as buyers crowded auction rooms in the bid to secure development friendly stock.
READ MORE: Find out if your suburb is rising or falling
Under pressure to put the brakes on rapidly rising house prices, the Reserve Bank is set to make an announcement on higher LVRs for investment properties, with 40% deposit requirements expected from March.
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Ray White Manukau director Tom Rawson told OneRoof that developers had been flocking to his company’s auction rooms wanting to buy something before the new rules kick in.
“They walk in wanting to buy and need to walk out with something. They might get a second pick but they don’t mind, as long as they get something,” he said.
Two properties his agents had on the block last week - 12 Ben Lora Place and 18 Hallberry Road, in Mangere East – sold for more than $1 million each after strong bidding action.
Between them, the two properties attracted 156 bids.
18 Hallberry Road, in Mangere East, Auckland, sold to a developer for $1.25 million. Photo/ Supplied
18 Hallberry Road, which was marketed for sale by William Vaea and Metia Lisati, fetched $1.25 million under the hammer – half a million dollars above its 2017 rating valuation.
The three-bedroom brick and tile house sits on an 802sqm section zoned for urban development, and had been pitched at owner-occupiers, investors and “opportunists”.
12 Ben Lora Place was pitched squarely at developers and fetched $1.003 million under the hammer – more than $350,000 above its rating valuation.
The 617sqm site is also zoned for urban development but a rental appraisal of more than $500 per week had made the three-bedroom house attractive to investors at the auction.
Rawson said the buyer planned to rent out the house while working through development plans for the site.
“We used to have people going silly for terrible and unrentable dwellings but now people are seeing value in rentable properties. If it’s ready to rent, you just collect the income and you’re ready to go,” he said.
Another development property in nearby Pakuranga sold for $2.648 million under the hammer at Barfoot and Thompson’s auction on Friday.
Two adjoining sites at 8 William Roberts Road, in Pakuranga, fetched $2.645 million under the hammer. Photo / Supplied
Marketed by Barfoot and Thompson agent Zane Munif, the listing of two adjoining homes at 8 William Roberts Road brought out the buyers interested in the 910sqm site zoned Business - Mixed Use, with bidding starting at a high $2.4 million and the sale price exceeding the combined rating valuations by more than $1 million.
