A prime development site in a strategic city-fringe growth hub offers an opportunity for investors and developers to get in before the train leaves the station, Bayleys salespeople say.
Bayleys Auckland Metropolitan Markets associate director Damien Bullick says the property is offered to the market at a time of increasing demand for housing options, particularly as migration reaches a multi-decade high and the forward-looking supply line weakens.
He is marketing a part-tenanted opportunity at 177A Mount Eden Road with Bayleys colleagues Alan Haydock and Phil Haydock, for sale by tender, closing at 4:00 pm on Tuesday, 12th March 2024 (unless sold prior).
“This is a rare chance to secure an affordable Mount Eden development site in the sought-after double grammar school zone while generating meaningful holding income.
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“Existing improvements comprise three residential flats, two of which are currently tenanted, and a third offers the opportunity to increase income through add-value works or redevelopment.
“A tactical location close to the under-construction Mount Eden City Rail Link (CRL) station, motorway interchanges, Auckland’s CBD, and Mount Eden village amenities provides immense value with scope for immediate development, land banking, or add-value investment purposes.”
The freehold development site features a 688sq m (more or less) area in Business – Mixed Use zone, providing for an intensive mix of commercial and residential options and a build height of 18 metres.
Existing improvements comprise a two-level villa with a three-bedroom flat on the upper level and a vacant two-bedroom dwelling on the ground floor.
In addition to the villa, there is a second two-level standalone building that includes a one-bedroom flat with an internally accessible garage.
Haydock says the three-bedroom flat and separate one-bedroom dwelling are presently leased on a residential basis to two tenants, providing a gross annual return of $73,840.
“Renovation works to the ground floor two-bedroom flat could add upwards of $26,000 per annum to the total return once complete and leased,” he says.
Haydock says the potential for growth in a strategic location will be of keen interest to investors who have been watching residential demand dynamics over the past 18 months.
“Recently, more challenging economic conditions have meant fewer residential construction projects reaching the completion phase.
“At the same time, demand for housing from record-high migration appears to be steering Auckland towards another supply shortage, presenting investors with the chance to leverage current conditions and deliver a rewarding development project.
“Completion of the nearby CRL will be a boon for the local area which has welcomed many new residents over the past decade as new apartment developments have been particularly well-received by the market.
“Given a high-profile reputation as one of Auckland’s oldest and most prestigious suburbs, properties in Mount Eden have a demonstrated history of solid capital growth, which works alongside current market dynamics to elevate this opportunity as worthy of consideration for developers, add-value investors and those building their portfolio with strategic land acquisitions.”
- Supplied by Bayleys
