Ray White City Apartments' weekly apartment auction was the standout of the auctions monitored by interest.co.nz over the last week.
There wasn't a lot of action on the apartment front, with neither City Sales nor Barfoot & Thompson having their regular specialist apartment auctions, leaving just Ray White City Apartments where there were just four units on offer and they were a bit of a mixed bag.
There was a larger three bedroom unit in a leasehold complex near Auckland's historic former central Railway Station, a couple of shoeboxes under management contract in a student accommodation complex, and a studio in the upmarket Precinct building on Lorne Street in the CBD.
But all four units attracted competitive bidding which was quite lively on a couple of them. By the end of the auction all four properties had sold under the hammer.
On the general housing front Bayleys only had 11 properties on offer at their Auckland auctions but achieved sales on seven of them, giving a clearance rate of 64%. Prices ranged from $860,000 for a two bedroom cottage at Muriwai Beach, to $2.15 million for a two bedroom penthouse apartment in the historic Dilworth Building in downtown Auckland.
Down the line, one of the four properties at Bayleys' Hamilton auction was sold, and sales were achieved on four of the seven properties offered at Bayleys' Tauranga auction.
Also in Tauranga, Eves Real Estate had 16 residential properties scheduled for auction and achieved sales on four of them.
Details of all the properties offered and the prices achieved on those that sold can be viewed on our Residential Auction Results page.
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47 Comments
Apartments are getting more and more popular with FHB's where you don't have to worry about any eyesore power transformers outside which can knock $150,000 off the value of the property. https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12…
"If it is not going to be removed, then we require compensation for the loss of value to our property of $150,000."
Why do we have to mow our own berms then I wonder?
I do think it is the city's property but I remember once someone had a fruit tree on his berm and he would chase people away who were trying to pick the fruit.
I also really hate how some people, probably renters, park cars on the berms, making it all rutted and muddy in the winter. I have been tempted to call the council on them because I believe you can get a parking ticket for this but I don't want to come across as a twat. When Brown made us start looking after our own berms (I'll never ever forgive him for that) I felt I had even less of a leg to stand on with my complaint.
When the cities amalgamated most cites had required people to mow their own, I think it was only Auckland City that didn’t. Obviously you can’t have some rate payers getting their Berms mowed for free and others not. So they either had to increase everyone’s rates and mow everyone’s berm, or ask everyone to spend an extra couple of minutes and do it themselves when they mow the rest of their lawn. Personally I think they made the right call.
Maybe no cosmic law, but it’s hard to stay elected when you give special treatment to a quarter of your voters. And the rubbish component of the rates is set relative to the level of service received. Some areas get worse service but lower rates.
So the equivalent would be a berm mowing levy on Auckland city residents. Which I don’t think would have been popular with the likes of myself and many others that already mow their own berm.
I’ve been in the Bays for more than a decade. In that period they have been redone the footpaths, re-sanded the beaches, put in a walkway and put in a jungle gym at Mission Bay. The fountain was bequeathed as were many of the benches. Go down to the waterfront on any given weekend and it’s full of non Bays people. The residents should get a rebate for loss of quiet enjoyment rather than paying a premium on rates.
Maybe the Mission Bay residents association should get together and fund perimeter gates and security for the area. Swipe Card access for vehicles and armed Military Police stationed at all checkpoints and beach patrols. Hah, who am I kidding, the "undesirables" in other post codes should fund this initiative.
Would you issue sunbathers ID cards? Maybe unique bar-codes tattooed to the wrist, so the beach patrols can just zap the wrist. Will save interrupting one's tanning session to go rifling through a tote bag looking for their ID card.
You've noted in another thread you've essentially received $1.5million of betterment from the growth of Auckland, which includes the city managing infrastructure to help handle that growth. You're not returning any of that to society, so needn't expect society to recompense you if some of it is similarly reduced.
The growth in Auckland has bettered my property. Not through amenities provided, but by dint of the relative value of amenities compared to others e.g. commuting time has remained static over the last decade whereas others have seen large increases. When I was busing to work it was 26 minutes.
Lets face it, that owner isn’t getting a cent from anyone and neither would I. The best defence is smart buying. Right Location, aspect, neighbourhood, house materials, design, likelihood of intensification, likelihood of interruption of sunlight, car parking, traffic volumes. It all plays into the value. If you assume that everyone is selfish with property rights and ensure the least impact you are onto a good start. Evidently that property had an underlying issue. That’s the way the cookie crumbles.
WooHoo!!! Four apartments sold for the entire week in Auckland via auction! Must be a new record!!!
Note the little asterisk in the article... "There wasn't a lot of action on the apartment front, with neither City Sales nor Barfoot & Thompson having their regular specialist apartment auctions, leaving just Ray White City Apartments where there were just four units on offer and they were a bit of a mixed bag."
I think we’re finally seeing a culture shift in therms of appartment living in Auckland. Between retiring baby boomers wanting a lower maintenance option, first home buyers wanting a more affordable (and well-located) foot in the door, and foreigners already accustomed to them, appartments are going to become more popular. Hopefully trend away from shoeboxes will continue. Not a fan of this leasehold nonsense though - to me it’s closer to renting than buying.
Yes, the shoebox mentality doesn't make sense. Even cities like Tokyo, where there is a premium on space, has moved away from the <30-meter apartments, which were only really designed for transient singles anyway. NZ is a little new to contemporary urban and planning design ideas and the benefits it has for wider society.
Jimbo got no idea where you got that BS from.
We have got family homes on big sections and 3 level apartments and everything in between.
We have got no major preference for any particular type of property, as long as it is positively geared and we are buying well under true market value then no problem
BuyLowSellHigh, put in earthbound context, only (four) out of (four) apartments sold. Agreed, it could be an attractive alternative lawn free option for boomers wanting to remain in Auckland. Caution is key here as there are many being built and it could easily turn into a glut; https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12…
It will be interesting to see if Auckland's foreign student numbers hold up going forward too. Also, as you know, Kiwibuild is intended to satisfy pent up affordable housing demand in the lower quartile. Plenty coming to empty out those Auckland rentals!
TP, what is KiwiBuild?
How many have been built and people moved into?
Twyford has gone that quiet the silence is deafening!
It ain’t going to happen like many are hoping for, and yet everyone is wanting to buy something that they have no idea what or where it is
Brilliant!
Correct but as I have posted on several occasions....FB's not banned from buying apartments.
https://www.stuff.co.nz/national/politics/104826974/foreign-buyers-ban-…
Hi Pragmatist,
Point taken - and thanks.
But there's still a rush in the sense that in some suburbs of Auckland prices are rising, so there's a financial incentive to buy sooner - rather than later.
In any case, with house prices proving too expensive for many, apartments are becoming more popular - especially those that are in the inner city suburbs and don't have weather-tightness issues.
Finally, let's wait and see...... I expect the foreign buyers ban will be further watered down. It's a total can of worms.
TTP
If the Overseas Investment Bill does get watered down, it'll be due to the lobbying of various parties of interest such as Fletchers, Bunnings, Ryman Healthcare etc.
No matter the outcome, there will be people who aren't happy with it. I'm sure if the Government chose to ignore the submissions from these large interests they'll be labelled as fascists, if the bill does get watered down it'll be labelled as corporatism.
The guru said the big one is coming.. book your bitcoin purchase now. I am sure Oily Newman will sound the same warning.
http://mobile.nzherald.co.nz/business/news/article.php?c_id=3&objectid=…
Some examples of losses on Australian property; "a flat in East Perth that sold for $530,000 in 2010, but was worth just $390,000 last month. Another inner city flat fell in value to $260,000 from its original price of $276,000 in September 1999. A $2.2 million home in Cottesloe (2007 price) became a $1.9 million home when it was sold in 2018" ; https://www.oneroof.co.nz/news/35239/?ref=nzhhome
It's a timely warning to Specu-landlords who avoid becoming bank fodder. You'll soon become long term investors. Not by choice.
That's cherry picking to the ultimate degree. For every one of those there would be 10,000 that have made spectacular gains. And in the same periods 100% of term deposits lost purchasing power by exactly the rate of inflation just on the CPI. Relative to property term deposits would have lost at least 60% of their purchasing power since 2000.
Snodgrass Throg,
In Australia, the day when one can give up the day job buy a property and flick it off for extra 100K is long gone. In Brisbane it's not unusual to sell an apartment 50K less that the original price. For houses after recouping the stamp duty and agent fees you would be extremely lucky to make a small profit. This is the same trend across other capital cities, many be with exception of Hobart.
Snodgrass Throg, interestingly, the article appeared under NZ Heralds very own "cherry picking" section "One Roof" rather than the business section. Could they be trying to condition the already invested to now look to the much long term and not to panic now capital gains are drying up???
I wonder whether the recent rate hikes and introduction of the APTR for central city properties will have any effect on prices? https://zodiak.co.nz/rate-changes-for-short-term-rentals/
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