Auckland's apartment market got off to a quiet start to the year when no one turned up to Barfoot & Thompson's apartment auction at the firm's head office building in Auckland's CBD this week.
Two apartments were on offer, both situated in the same building in Dockside Lane just off Quay St in the CBD.
Both were one bedroom apartments and one also had a car park.
Both were on leasehold titles.
But with no potential buyers in the room and none on the phones, the auction did not proceed.
At Ray White City Apartments' first auction for the year just one apartment was on offer, a 56 square metre, two bedroom/two bathroom unit on a leasehold title with a car park in The Landings building near the historic former Central Railway Station off Beach Rd.
There was strong bidding for this unit from several hopeful buyers before it was eventually sold under the hammer for $141,700.
The Landings has suffered from weather tightness and other structural issues which have now been remediated and according to QV.co.nz the vendors had paid $300,000 for the unit in 2005.
They would also have faced substantial costs as their share of the weather tightness repairs.
There was also strong bidding for the only property offered at Bayleys first auction of the year at their Viaduct Harbour rooms.
The two level, four bedroom house in the holiday hot spot of Hahei on the Coromandel was sold under the hammer for $1.816 million.
It will probably be another couple of weeks before the auctions get back into full swing.
Full details of the latest auctions are available on our Auctions/Sales Results page.
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22 Comments
I agree...big time..... Never ever buy leasehold...
Everything i've learnt about Land values and Real Estate prices...... began after buying our first house...which was leasehold... back in 1993.... ekkkkkkkkkkk
After the lease renewal ... I was shocked into learning about the economics of Land values..
I think both you and Maxi the Taxi told and taught me that last century when I was releasing one to the market on a clients behalf - great advice about leasehold that I have shared many times over and those that listened were saved along the way....
So I don't think this is an indicator about the market, just that people wouldn't be so stupid to buy leasehold properties these days - or weather tightness issue related properties.
Imagine being stuck with both, munted and exorbitant future land rent hikes. tuck fhat for a joke....
And there are equally dangerous variants on that theme especially in the apartment market. Parties with a vested interest who have the power to set ground rentals and body corporate fees and similar can wipe out your equity at the stroke of a pen. So you should probably add never buy apartments also unless you are very very careful and know what you are doing.
Ted it's not like LAST YEAR! I've already explained this to you several times. Foreign Buyers were temporarily locked out of the NZ property market from Oct 2015 to Jan 2016 whilst they had to register for IRD numbers.
That's what caused the Auckland market to drop by -8% over that time period. In Feb 2016 they just carried on spending. Now they're locked out again due to their own Government's Capital Flight restrictions and that they've been actively discouraged to buy Foreign Property.
Now do you get it!
Zero commission January will soon turn into zero commission February for you Ted. You will have even more time to idle away posting on interest.co.nz. It will be like watching paint dry, endless sunny days and no buyers with more than 50k. Have you thought about selling cars instead?
Crowdfunding for WALL around #Alternativefacts & Ted Stanton
Trump is a disaster & Fascist Bannon deliberately creating kayos Clown Trumpo dutifully obliging as long as he is told his hands are BIG and his crowds are Biggest this golden-shower fool is happy
The reverberations from this fool will be catastrophic
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