One of the 2 penthouses on the otherwise-commercial building at 2 Emily Place, on the eastern fringe of the Auckland cbd, sold under the hammer at Bayleys’ auction today.
An apartment in the Surrey in Grey Lynn sold for almost exactly the same price as it went for in 2015.
2 suburban units, in Hillsborough & Otahuhu, one with a code compliance issue and both on cross-leases, didn’t attract a bid.
Some thoughts on the market….
Given the generally subdued state of the apartment market, the lack of bidding on the Emily Place penthouse could be considered unsurprising. After 3 bids and prolonged negotiation, the top bidder raised their price to a figure acceptable to the vendor – the mortgagee – and the hammer dropped without further contest.
But it is a penthouse (though with only one parking space in the building), it is large with a 30m² balcony providing city & harbour views, including an eagle’s-eye view right along Customs St, and, as a value reducer, it was taken to market by the mortgagee – often the signal for a price cut to be negotiated.
If you knock off $100,000 for parking value and exclude the balcony (itself bigger than dozens of studios around the central city), the sale price boils down to $6830/m² internal.
Many vendors of less salubrious premises have been trying – with difficulty – to hold the line at $8000/m² at auction, while some better quality apartments in the secondary market have achieved price levels towards $10,000/m².
Most apartment investors have fled the auction rooms, with the availability of finance one problem and a declining market the other.
This decline hasn’t been nearly as severe as those in 1987-92 & 2008-11 – prices bottomed at $3-3500/m² for average secondary stock in 2011 – so a buyer in that era will still be well ahead.
The time comes, of course, when the market does turn upward again, and the investors whose timing was perfect stand to make large gains. We are in that grey period, watching politicians & central bankers internationally make criminal decisions mostly designed to placate markets rather than improve economies or investment paths.
Today’s auction results:
2 Emily Place, unit 9:
Features: up the external glass elevator with a view along Customs St, 183m² 2-level penthouse above commercial floors, 3 bedrooms – master suite on upper level, 2 bathrooms, twin staircases to kitchen, dining, step-down lounge & 30m² balcony; parking space
Outgoings: rates $3508/year including gst; body corp levy $14,121/year
Outcome: sold for $1.35 million at mortgagee auction
Agents: Cheryl Regan & Harry Cheng
73 Mangere Rd, unit 1:
Features: cross-lease, quarter share in 1011m², 2-bedroom unit, front & rear sunrooms, carport
Outcome: no bid
Agents: Clive Lay & Kalala Bowden
The Surrey, 19 Surrey Crescent, unit 504:
Features: 94m², 2-bedroom apartment, 2 bathrooms, 2 parking spaces, 2 storage lockers, corner unit with windows facing north & south
Outgoings: rates $2467/year including gst; body corp levy $7236/year including gst
Outcome: sold for $912,000 – it sold for $910,000 in November 2015
Agent: Cheryl Regan
26B Bel Air Drive:
Features: cross-lease, half share in 701m², 3-bedroom duplex unit, downstairs garage; code compliance certificate not issued for building work by previous owner
Income assessment: $570/week current
Outcome: no bid
Agents: Victoria Turner & Peter Cashmore
For my 2014 market view:
6 March 2014: Apartment buyers hold off at Ray White auction
Comments: If you disagree with my prognosis, or you want to add to it, post your thoughts in the Comments section below.