A tired brick and tile house in Auckland's prized double grammar zone sold under the hammer for $7.06 million - $2.36 million above its 2017 rating valuation.
The eight-bedroom house, which sits on 1373sqm of flat land at 12 King Edward Avenue, in Epsom, was snapped up by a developer after fierce competition at Barfoot and Thompson's auction rooms last week.
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On the market for the time in over 40 years, the rental property had been pitched as a developer's dream due to its lucrative Terrace Housing and Apartment zoning.
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Barfoot and Thompson agents George Fong and Laura McAuley said the sale price was a surprise to both them and the vendor.
“I did not expect it to go this far, but in this market, you never know, especially when selling at an auction," Fong said.
All thirteen bidders at the auction were either developers or investors. The bidding started high at $4.5 million, and quickly shot passed the reserve. All in all 55 bids were made.
The new owner doesn’t have concrete plans for the site yet but Fong said that the rental income for the property was about $100,000 a year so they could afford to take their time.
Fong said that buyers were prepared to pay a premium for properties like 12 King Edward Avenue because flat development sites in double grammar zone were rare. “Everyone liked it because there’s a stable income,” he said.
“Once you get architects involved and get a clever design, there’ll be a lot of terrace houses or apartments there."
