The margin between vendor expectations & buyer estimates of where the market has moved looked wide again at Ray White City Apartments’ auction yesterday, as just 2 of the 7 properties sold.
The first property listed, in the Siena Terraces in Grey Lynn, sold on a 5.2% gross yield on current rent after a contest between 4 bidders.
After bidding slowed on the second apartment, in Zest, up the street from the NZ International Convention Centre under construction, auctioneer Ted Ingram couldn’t budge bidders who’d stopped $10,000 short of the figure he said would buy the unit.
The third property up, in the Endean Building on Quay St & the foot of Queen St, showed how wide apart expectations can be. Offers rose from a start at $1 million to $1.4 million – “That’s where I thought we’d be starting,” Mr Ingram said. Another bid took the offers to $1.425 million, and the auctioneer closed with a vendor indicator bid at $1.6 million.
On another one-bedroom unit, in the Hobson Oaks – which Mr Ingram “thought would have gone past $200,000 easily” – he placed a vendor bid to lift bidding from $130,000 to $180,000. When the sale was agreed at $187,500, Mr Ingram commented to the 2 men making that offer: “Gentlemen, this look it’s Christmas time, early.”
On my observation, one couple buying yesterday were occupiers, and the rest of the bidders on all 7 apartments were investors or traders (one longer-term, the other lifting the property for short-term resale).
While investors have frequently been accused of keeping first-homebuyers out of purchases, in fact investors are far cagier, know their limits on rent & do-up costs and are far harder to budge.
That leaves an opening in the current market for owner-occupiers to enter the fray and take advantage of some vendor uncertainty – often, a need to sell rather than considering it just as an option. But buyers looking for their own home have been largely absent from this market for months, which you can put down to the inability to secure a mortgage.
Precinct, 6 Lorne St, unit 1607:
Features: 44m² + balcony, one bedroom
Outgoings: rates $1474/year including gst; body corp levy $4277/year
Income assessment: $550-580/week furnished
Outcome: passed in at $535,000
Agents: Josh Muriwai & Adam Gurr
16 Cotesmore Way:
Features: leasehold, 115m² including garage, 3-bedroom terrace, 2 bathrooms, tandem garage, recladding completed & code compliance certificate issued
Outgoings: rates $1851/year including gst; body corp levy $3131/year, ground rent $7667/year
Outcome: passed in after bid at $140,000, vendor bid at $200,000
Agent: Andrew Bond
Endean Building, 2 Queen St, unit 4C:
Features: 130m², one bedroom, 2 bathrooms, parking space
Outgoings: rates $2562/year including gst for apartment, $759/year for parking; body corp levy $8527/year apartment, $606/year parking
Outcome: passed in after bid at $1.25 million, vendor indicator bid at $1.6 million
Agent: Damian Piggin
Hobson Oaks, 188 Hobson St, unit 808:
Features: 32m², fully furnished one bedroom in hotel lease
Outgoings: rates $4309/year including gst; body corp levy $5701/year
Income assessment: $1325/month
Outcome: sold for $187,500
Agent: Damian Piggin
Zest, 72 Nelson St, unit 1306:
Features: 37m², 2 bedrooms, secure parking space
Outgoings: rates $1188/year including gst; body corp levy $4723/year
Income assessment: $420/week current, appraisal $460-480/week for apartment, $50-60/week for parking space
Outcome: passed in at $370,000
Agents: Judi & Michelle Yurak
Victoria Residences, 75 Victoria St West, unit 305:
Features: 40m², one bedroom, 8m² balcony, opposite Sky Tower
Outgoings: body corp levy $2601/year
Outcome: passed in at $420,000
Agents: Lisa Zhang & Ron Yang
Siena Terrace, 6 Burgoyne St, unit 1M:
Features: 60m² including patio, one bedroom, tandem garage
Outgoings: rates $1220/year including gst; body corp levy $3615/year
Income assessment: $495/week, fixed until yesterday
Outcome: sold for $495,000
Agent: Keisha Gutierrez