Published 14 February 2011
By chance, as I was awaiting the start of this afternoon’s 4-hour Auckland Council meeting on rates & a few other things, including Maori representation, a real estate agent told me: “You left out the carpark.”
The agent was trying to sell an apartment on the same floor of the Metropolis as one sold at auction on 3 February. In that story, I bothered to write the price/m², something I don’t always do because of the numerous complicating factors such as balconies – and parking.
Take the parking space out and the price/m² drops by almost $1000. The agent had been puzzled because the price I quoted was well above figures he could attract interest at. Minus parking, the sale price was close to his assessment.
The 44m² 10th-floor unit sold for $283,000. After a 3-way discussion in which I was told parking at Metropolis was competing with spaces as far away as Princes Wharf, and that had steadily brought parking rents down, we established a parking rental of $220/month – $2640/year. The third party to this conversation suggested a yield of 6.25%, which put a price of $42,240 on the parking and reduced the residential unit price to $240,760.
And at that price the value comes down to $5472/m² – just under $1000/m² less than my original calculation of $6432/m².
The agent had looked at this original calculation and felt happier with the $6000/m² for the 35m² unit he was trying to sell, which took the price to $210,000 (no parking space). But he couldn’t attract any interest at that price so he made inquiries, discovered the omitted parking factor, took the $1000/m² off and feels he’s in a more appropriate price range at $191,500.
3 February 2011: 5 sold at first Ray White apartments auction for year
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Attribution: Conversation, auction, story written by Bob Dey for the Bob Dey Property Report.