Another sale of an apartment in a formerly leaky building has added to market evidence that such properties can quickly bounce back to full value once remediation work has been completed.
The apartment was in the low rise Marina Park complex on Fanshawe St in Auckland's CBD and was taken to auction this week Krister Samuel of Ray White City Apartments.
It was on two levels, had two bedrooms, a second toilet on its upper level. a full length balcony and a tandem car park.
The Marina Park complex is located just around the corner from Victoria Park and one block back from Viaduct Harbour and its apartments are on freehold titles.
However the complex had experienced weathertightness issues and has been completely reclad with an aluminium composite and a new code compliance certificate was issued earlier this year.
The unit auctioned this week was of a size that could appeal to owner-occupiers or investors and was offered for sale furnished and rented at $420 a week.
According to QV.co.nz the previous sale of the unit was in 2002 when it sold for $225,000 and its new rating valuation came in at $360,000.
There were several keen bidders when it went to auction and it was sold under the hammer for $411,500, providing its new owner with a gross rental yield of 5.3%.
However it is understood the interior of the unit was dated and the agents noted that a similar unit that had been refurbished in the same complex was rented at $550, suggesting an opportunity for the new owner to lift the apartment's rent and its capital value.
If rent was calculated at $550 a week, the gross rental yield would rise to 6.9%.
Rates on the unit were $1325 and the body corporate levy was $3686.
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