Massive price increase for North Shore apartment that was resold two months after being purchased, but leasehold units struggled at the latest Ray White auction

There was no sign of a winter slow down at the Ray White City Apartments auction this week, with another packed auction room and vigourous bidding on most of the lots.

Eight apartments were on offer and there was keen competition for most of them, with five selling under the hammer and three being passed in for sale by negotiation.

There was particularly strong bidding for a two bedroom unit in the Shoalhaven complex at Takapuna.

It came with a car park and a balcony but at 51 square metres certainly wasn't large for a two bedroom property but what made it unusual was that according to QV.co.nz it had only been purchased on May 17 this year, which means it was back on the market in less than two months.

QV.co.nz recorded the purchase price in May as $435,500, but after strong competition form several bidders at the auction it sold under the hammer for $497,000, which means its price had increased by $61,500 in the last two months. 

Interestingly QV.co.nz also shows that the same unit was originally purchased in 2004 for $372,000, which means its price has gone up nearly as much in the last two months as it did in the previous 11 years, which says something about the state of the market.

However it wasn't all beer and skittles and leasehold properties struggled to achieve reasonable prices.

A leasehold one bedroom apartment in the Scene One building near the corner of Beach Rd and Anzac Ave in the CBD, which came with a car park and balcony and faced back towards the city had been purchased for $272,000 in 2005 according to QV.co.nz.

However as well as being leaehold, the Scene One apartments face an additional headwind because the property has weathertightness issues which are currently the subject of litigation, so the apartment was offered with a declared reserve of just one dollar.

Predictably the first bid was for a dollar but the second bid of $50,000 started the aiction in earnest and several bidders fought it out, with the unit eventually selling under the hammer for $96,000.

The total outgoings on the property, including rates, the body corporate levy and ground rent were $10,366 a year.

Another leasehold apartment, in The Docks building off Quay St, was passed in after failing to attract any bids.

See below for the full results of this week's auction:

• 1107/430 Queen St. The Volt building. A 40 square metre, two bedroom unit. Vacant. Sold for $317,000. Rates were $991 and the body corporate levy $4370.The agents were James Mairs and Aled Luffman.
• 6D/125A Hobson St. First Imperial building. A 35 square metre, furnished studio, rented at $275 a week. Sold for $221,000 providing a gross rental yeild of 6.5%, reducing to 4.8% once rates of $797 and the body corporate levy of $2845 were allowed for. The agent was jean Ooi. According to QV.co.nz the unit was last sold for $126,000 in 2006.
• 907/430 Queen St. The Volt building. A 40 square metre, two bedroom unit, rented at $430 a week. Sold for $316,000, providing a gross rental yield of 7.1%, which reduced to 5.4% once rates of $991 and the body corporate levy of $4292 were allowed for. The agents were James Mairs and Aled Luffman.
• 14/38 Symonds St. Pembridge building. A one bedroom unit with a car park in a low rise character building. The opening bid on the property was $300,000 and when there were no further bids it was passed in for sale by negotiation. According to QV.co.nz the unit had been purchased for $295,000 in May this year. The agent was Mitch Agnew.
• 409A/130 Anzac St, Takapuna. Shoalhaven complex. A 51 square metre, two bedroom unit with a car park. Vacant.  Sold for $497,000. Rates were $1539 and the body corporate levy $3691. According to QV.co.nz the unit had been purchased in May this year for $435,500, meaning its price increased by $61,500 in two months. The agents were Donald Gibbs and Liam Kyle.
• 1709/10 Waterloo Quadrant. The Quadrant Hotel complex. A 41 square metre, two bedroom apartment under management contract to the hotel. Passed in with a highest bid of $360,000. According to QV.co.nz the unit had been purchased for $288,000 in 2006. The agents were Damian Piggin and Daniel Horrobin.
• 303/2 Dockside Lane. The Docks building.A 61 square metre, fully furnished, two bedroom unit with a car park. Rented at $640 a week. Leasehold. When there was no opening bid on the apartment, the auctioneer made a vendor bid of $200,000 and when there were no further bids it was passed in. Rates were $1415 and the body corporate levy was $8722, inclusive of ground rent. According to QV.co.nz the unit had been purchased for $480,000 in 2006. The agents were James Mairs and Aled Luffman.
• 712/2 Beach Rd. Scene One building. A 46 square metre, one bedroom apartment with car park that is the subject of a weathertightness claim. Leasehold. Sold for $96,000. Rates were $1122 and the body corporate levy $3343 plus ground rent of $5899. According to QV.co.nz the apartment was purchased for $272,000 in 2004. The agent was Dominic Worthington.

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