There was a noticeable gap between the price vendors wanted to achieve and the price buyers were prepared to pay at Ray White City Apartments' latest Auckland apartment auction.
Ten properties were offered at the agency's auction on July 9 and although bids were received on all of them, only two sold under the hammer. Both of those went for well below their rating valuations.
One was a 37 square metre, two bedroom unit in the Zest building on Nelson Street, which has long been a favourite with investors.
The unit had a rating valuation of $310,000 and was last sold in 2003 for $196,500.
There were multiple bids for it before it was sold under the hammer for $280,000.
The most spirited bidding of the day was for a two bedroom/two bathroom unit in the Imperial Gardens building on Hobson St, which has remediation issues. The unit had a rating valuation of $350,000, but bidding opened at just $100,000 and soon developed into a bidding duel between two rival purchasers.
However even they were being cautious on price and most of their bids increased in increments of just $500. There were a total of 122 bids for the property before one of them finally gave up and the property was sold under the hammer for $232,000.
Bidding was reasonably tepid on the remaining eight properties at the auction, all of which were passed in and only one of them managed to attract a bid that was above its rating valuation.
See below for details of all 10 properties offered at the auction and the bids they received.
Ray White City Apartments auction, July 9:
- 422/72 Nelson St, CBD. Zest apartments. A 37 square metre, two bedroom apartment with a rating valuation of $310,000. There were multiple bidders for this unit and it sold under the hammer for $280,000.
- 818/430 Queen St, CBD. Volt complex. A 40 square metre, two bedroom apartment with a car park on a separate title. Rating valuation were $390,000 for the apartment and $75,000 for the car park ($465,000 combined). There were multiple bids for the property and during the bidding the reserve was declared at $450,000 but it was passed in with a top bid of $410,000.
- 1011/135 Hobson St, CBD. Imperial Gardens complex. A 61 square metre, two bedroom/two bathroom unit. The complex has remediation issues. Rating valuation $350,000. Bidding opened at $100,000 and soon turned into a bidding duel between two potential purchasers. A total of 122 bids were made for the property, most of them increasing in just $500 increments, before it was sold under the hammer for $232,000.
- 417/43 Edwin St, Mt Eden. Eden Green complex. A 70 square metre, two bedroom, penthouse apartment with a car park. Rating valuation $630,000. Passed in with a single bid of $775,000.
- 412/47 Hobson St, CBD. H47 building. A 38 square metre, one bedroom unit with a car park.Rating valuation $460,000. There were multiple bids but it was passed in at $400,000.
- 209/145 Nelson St, CBD. Sugartree Centro complex. An 88 square metre apartment with an 11 square metre balcony, two bedrooms, two bathrooms and a car park. Furnished. Rating valuation $920,000. The apartment had been purchased for $752,000 in 2015 but was passed in with a top bid of $706,000.
- 1R/15 Nelson St, CBD. Columbia building. A 47 square metre, one bedroom unit opening to a private courtyard, with a car park. Rating valuation $580,000. There was just a single bid for this property and it was passed in at $350,000.
- 4O/15 Nelson St, CBD. Columbia building. A .45 square metre, one bedroom apartment with a car park. Rating valuation $490,000. Passed in with a single bid of $350,000.
- 408/152 Hobson St, CBD. Fiore building. A 40 square metre, one bedroom apartment opening to a 20 square metre courtyard. Rating valuation $440,000. Passed in with a single bid of $300,000.
- 9C/92 Nelson St, CBD. Regatta Court complex. A 70 square metre, north facing penthouse with harbour views, two bedrooms and two car parks. Rating valuation $790,000. Bidding opened at $600,000 and continued until it stalled at $675,000, at which point te auctioneer made a vendor bid of $700,000, but when no further bids were received it was passed in.
Further details of auctions held around the country and the results achieved are available on our Residential Auction Results page.
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11 Comments
I suspect that gap between buyer and vendors expectations particularly for apartments will get bigger.
Yeah, wow, apartment prices looking pretty dire.
Yep it's not just apartments but also shoddily built townhouses even in expensive neighborhoods in Auckland that are taking a hit. I noticed in the recent auction results that a townhouse in Parnell; 32 Cotesmore Way had dropped dramatically in value, even though they had been recently renovated which seemed to take years. It's RV was $870,000 (July '17) and sold this month for just a measly $160,000.
These have never been worth much being leasehold then leaky then remediation work (the 'renovations' you mention.
Those ones were a catastrophically unfortunate purchase for anyone who did.
That a known leaker that will require a ton of cash to fix actually sold shows that something unusual is happening. Good luck.
When one reads headlines it gives a perception that demand is overall very high for apartment :
'Apartment in building with remediation issues attracts 122 bids at auction'
Though correct and is for that indivdual apartment and what follows explains it all but if someone was just reading the headline, first impression will be that apartment market is booming.
'Eight out of 10 apartments passed in at auction suggests significant differences...'
122 bids at $500 increments for it to sell at 66% of RV.
Two bedrooms in 37 sqm, that is the most amazing part of this article! Mystifies me why anyone would buy a known leaker, must be strong medicine they hand out at the property investment seminars. Or is it just FOMO?
Yes, I was wondering that - I've lived in a 40 sqm 1 bedroom before and that felt small. I found the floor plans online here: http://www.teamyurak.co.nz/zest-apartments.html
This is starting to look much worse many were expecting, from all 10 auctions just 1 sold and that was 10% below CV. The header as other said is misleading since the apartment didn't even sell for about 66% of the RV
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