Auckland real estate auctions started 2022 with a bang as two properties sold on Wednesday for more than $4.6 million each, and a basic two-bedroom bach on Waiheke fetched more than $2m.
The top sale price at Barfoot & Thompson's auctions this week, where 77 Auckland properties have been up for grabs, was a stylish near-new five-bedroom home on Kowhai Street, in Takapuna, that sold for $4.63m - well above its 2017 CV of $3.3m.
The listing agent agent, Nico Zhang, said three bidders had battled over the property, adding it was a rare find near the desirable Lake Pupuke.
“The price went much higher than the on-the-market price of $4.4m. There’s nothing like this so close to the lake that’s nearly new, mostly they’re ‘60s and ‘70s older houses,” Zhang said.
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Zhang said that while the market quietened in November, cash buyers were still out there with particular shopping lists – good new houses, certain streets or neighbourhoods.
“I’ll be door-knocking now as there are three other buyers with $4m. They’ve all been looking for a while and are cashed up,” he said.
“Vendors are starting to accept that the market is not as strong, but realise if they have something special we can match with a buyer.”
A brand-new, five-bedroom house one back from the beach at Ida Way, Omaha, fetched $4.65m. Photo / Supplied
Buyers are still chasing holiday homes in Waiheke and Omaha.
At Bayleys’ auctions on Wednesday a brand-new five-bedroom house one back from the beach at Ida Way, in Omaha, fetched $4.65m.
Agent Victoria Turner, who marketed the property, said buyers knew that to replicate the quality of the new-build – if they could find land in Omaha – would take years and cost more.
“These are all cash buyers, there has been a huge number of people coming through Omaha and that’s a good sign.
“People looking for entry level with budgets of $2m can get disheartened, there’s less choice. The current median price for Omaha is $3.1m, up from $2.16m a year ago, because there have been so many sales over $4m, and way fewer properties for sale.”
Turner said a smart four-bedroom property on Kokopu Street which she listed just before Christmas had an offer within two weeks, with an “astute buyer who doesn’t muck around” snapping up the property by New Year for $2.85m (the property had a ratings valuation of $1.65m).
Nine bidders competed for a two-bedroom bach on St Anne Place, Omaha that sold for $2.27m. Photo / Supplied
Another Omaha property, a smartly renovated two-bedroom 1980s bach on St Anne Place, sold under the hammer after a lengthy pause for negotiation, for $2.27m.
Ray White Matakana agent Rod Cheeseman, who marketed the property with Heather Walton, said that with 80 groups viewing the 80sqm house which had a ratings valuation of $980,000, buyers realised the reality of Omaha prices.
“Gone are the days of getting a foot in the door at Omaha for mid-$1m, you’re starting with prices with a $2m in front," he said.
“There were nine bidders, but the buyers recognised where they needed to be. They told me they’re poor but happy, they knew they had to grab it and then do the shuffle later.”
It was a similar story for a Waiheke Island bach.
Five bidders competed for a modest 1980s two-bedroom bach on Victoria Road South, Onetangi, plonking down $2.32m - more than $1.1m above CV.
A two-bedroom bach on Victoria Road South, Onetangi, Waiheke Island sold for $2.32m. Photo / Supplied
“It’s the land that hit the spot – north side, a flat 846sqm site with elevated views of Onetangi,” said Bayleys agent Mana Tahapehi.
“Buyers have a long-term view of building, so a flat site makes all the difference – you'll finish up with a $4m house.”
Barfoot & Thompson auctioneer Marian Tolich said in the first four days of auctions, bidding had been quiet, and figures show clearance rates hovered around 28%. She added that for the first summer ever, agents weren’t calling to bring auctions forward because of serious pre-auction offers.
Only three properties sold below $1m, with the lowest buy a three-bedroom cross-lease house on Malaspina Place, Papatoetoe that went for $760,000.
“It will really kick in in February with people back from holiday. The bank lending is still a major and developers aren’t buying the prime sites, so that could put limits on the market.
“It’s going to be an interesting year.”
