Auction results this week in the hot Auckland suburbs of Grey Lynn and Ponsonby show that savvy buyers have done their sums on just how much it costs to renovate.
Two immaculately renovated houses – one in Ponsonby, one in Grey Lynn – sold for $3.4 million and $3.57 million. Two others that Barfoot & Thompson agent Ryan Harding calls “liveable do-ups" each went for $2 million.
That stacks up.
“The numbers are bang on,” he says.
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“To create something to top level, you’d be spending $1 million over the $2 million to buy. Then there’s the up-side of $500,000 for holding costs, time and all that.”
An attractive villa at 37 Beaconsfield Street Grey Lynn in need of renovation sold for $2 million at auction, a 'bang on' price according to real estate agents. Photo / supplied
Harding, who sold the attractive transitional villa at 37 Beaconsfield Street with colleague Matt O’Rourke, said that the house had the features that attract would-be renovators: good bones, a substantial four bedrooms on a 473sqm site and, best of all, resource-consented plans by well-known heritage architects Jones Architects for a full renovation that included a basement conversion, rear extension, pool and outdoor fireplace.
Harding said the property had over 60 groups and 13 registrations from other Barfoot and Thompson agents. The eight bidders drove the price to $250,000 over its CV of $1,750,000. Harding says that buyers could spend $50,000 to $100,000 on kitchen and bathrooms for a nicely liveable home before embarking on the big renovations.
The pair sold another three bedroom bungalow at 28 Chester Ave in the coveted Westmere avenues on 435 sqm, also for $2 million and also perfectly attractive now but with potential to do more.
“People have the appetite now. They see the sales of renovated place and think ‘I can’t go wrong here’ because renovated houses in the same area are selling for one-and-a-half million dollars more. So $2 million is within expectation.”
The two renovated villas that sold at auction this week were marketed by Bayleys agent Edward Pack.
A gorgeous three-bedroom, two living-room villa on the coveted “avenues” of Herne Bay achieved $3.4 million, while a park-side villa at 36 Dryden Street, Grey Lynn went for $3. 57 million, $1.27 million above its old 2017 CV. This one had four bedrooms, a swimming pool and garaging, adding to its appeal and records show it had last sold in August 2019 for $3.35 million.
The fully renovated property at 3 Ardmore Road, Ponsonby, sold for $3.4 million. Photo / supplied
“These two amazing beautifully renovated villas had good interest, it shows there is good demand for quality properties. We had multiple bidders and well-attended open homes,” says Pack.
He adds that buyers with these budgets are discerning – they have a list of bedrooms, second living, pool, garaging – but they know what they want in terms of quality and finish. “They’re not just going to jump at the next property. It’s got to be beautiful.”
Pack says that Grey Lynn has become as desirable as neighbouring Ponsonby, with buyers appreciating its nice local feel, tree-lined streets, huge park and proximity to the city.
“I’d match it to anywhere in the world,” he says.
Harding notes that the price achieved for a good renovation is finally recognised.
“A while ago, in 2015, a do-up was going for the same as one that was done-up. Prices were fifty percent cheaper then, but the difference between them might only be $190,000. Now the numbers are bang on.”
Properties next to Grey Lynn Park are popular with families. This one at 21 Schofield Street sold for $2.75 million. Photo / supplied
Another renovated villa backing onto Grey Lynn Park at 21 Schofield Street, was sold under the hammer after marketing by Bayleys agent Matt O’Brien for $2.75 million.
“Prices for Grey Lynn are really solid. Families with young children want to live right on the park, so people who want to buy are really taking their gloves off and buying.
O’Brien says that while there are some buyers who are taking a long time to buy “that’s their vibe. Most just want to get it done, that’s why we get a good price, get a good tussle at auction.”
O’Brien adds that this spring, there is absolutely no sign of the historic pre-election slow down.
“It’s not even on their radar.”
