Just over half sold under the hammer at the latest apartment auctions but it's getting harder to close the gap between the price vendors expect and what buyers are prepared to pay

Just over half the apartments on offer were sold at this week's major Auckland apartment auctions, but sales are becoming harder to achieve.

Over the last few weeks the auctions have been taking longer, with a gap emerging between the price vendors expect to receive and how much buyers are prepared to pay.

Bidding is more often than not falling short of the reserves which means the auctioneers and sales staff are having to spend more time during the auctions negotiating between the highest bidders and the vendors to achieve a sale rather than have a property passed in.

That is a major turnaround from just a few weeks ago, when bidding on apartments in popular blocks was often fast and furious.

The new LVR mortgage lending restrictions on residential investment properties are undoubtedly having an effect and the Auckland apartment resale market is likely to be particularly affected because it is dominated by investors more than any other segment of the residential property market.

However concerns about possible interest rate rises, a potential rush of new apartment projects once Auckland's new Unitary Plan is fully implemented and moves by the government to reduce immigration numbers may also be weighing on investors' minds.

At Barfoot & Thompson's apartment auction this week two properties were offered, with one selling under the hammer and the other passed in, and at Ray White City Apartments' auction seven apartments were offered and four were sold under the hammer, often after some protracted negotiations.

To see the results of both auctions and the prices achieved for the properties that sold, go to our Auction Sales/Results page.

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