City Sales sells six out of six at this week's apartment auction

A tiny shoe box apartment in a building popular with students in Auckland's CBD sold for more than $10,000 a square metre at this week's apartment auction by City Sales.

The 18 square studio apartment in the City Zone building on Liverpool St, which runs off the top of Queen St, was sold for $190,000, or $10,555 a square metre.

According to QV.co.nz it had been purchased for $135,000 in 2004.

City Zone is popular with students because of its proximity to the University of Auckland and other tertiary educational facilities and many of its apartments are owned by investors.

The south-east facing apartment did not have a balcony or a car park but was sold fully furnished.

City Sales director Martin Dunn said it was becoming increasingly common for the smaller studios to sell for around $10,000 a square metre, because of the comparatively high rental returns they generated.

The City Zone apartment was rented for $295 a week, which provided its new owner with a gross rental yield of 8%.

After allowing for the payment of rates of $985 and the body corporate levy of $1685 a year, the yield reduced to 5.6%, which meant it would still be providing its owner with a better pre-tax return than bank term deposits.

All six of the apartments put up for auction by City Sales this week were sold under the hammer.

See below for full details:

• 2F/9 Upper Queen St. Kohura Walton building. A 33 square metre studio with a balcony. Sold for $190,000. Rates were $1139 and the body corporate levy $1960. The agents were Chris Bell and Lucy Piatov.
• 1506/1 Courthouse Lane. Metropolis building. A 48 square metre, one bedroom, fully furnished unit. Sold for $462,000. Rates were $1286 and the body corporate levy $4676. The agent was Iona Rodrigues.
• 3/573 New North Rd. Kingsland. A 53 square metre, two bedroom home unit with a car park, on the upper level of a two level block. Sold for $490,000. Rates were $1662 and the body corporate levy $2701. The agents were Chris Bell and Lucy Piatov.
• 5C/4 Rendall Place. The Memphis building. A 55-60 square metre, two bedroom unit with a balcony and two car parks. Sold for $450,000. Rates were $1315 and the body corporate levy $4485. The agent was Corrine Rawlinson.
• 1311/11 Liverpool St. City Zone building. An 18 square metre, furnished studio. Sold for $190,000. Rates were $965 and the body corporate levy $1685. The agent was Iona Rodrigues.
• 507/83 Halsey St. Lighter Quay building. A 49 square metre, one bedroom, furnished apartment with no balcony or car park. Leasehold. Sold for $230,000. Rates were $1718 and the body corporate levy $6095 including ground rent. According to QV.co.nz the unit was originally purchased for $384,000 in 2003 and was resold for $137,000 in 2012. The agent was Gabrielle Hoffman.