- A multi-million-dollar villa in Devonport failed to sell at a mortgagee auction, with bidding topping out at $3 million.
- The property was initially listed last year and had a $3.55m price tag before the mortgagee stepped in.
- Mortgagee sales in Auckland are rising, with 235 in the past year, the highest in six years.
A mortgagee auction in the pricey seaside suburb of Devonport, on Auckland’s North Shore, is rare, but even the novelty factor of a multi-million-dollar villa appearing on the auction block in a distressed state wasn't enough to secure a deal on Thursday.
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Bidding on the four-bedroom property started at $1.5m and rose to just over $2m, but that was not enough. After a lengthy pause, a vendor bid of $3m brought the property back to the floor, but no one took the bait, and the property passed in - its fate still unknown.
41 Calliope Road hit the market a year ago with an RV $4 million. The owners tried to shift the house at auction and by negotiation, but after almost a year without results, they switched tactics and put an asking price of $3.55m on the listing.
The villa boasts a luxury finish, and when it hit the market year it had an RV of $4m. Photo / Supplied
It property is a standout home in the suburb. Photo / Supplied
The property was withdrawn from the market towards the end of July and then came back as a mortgagee sale.
The villa, which boasts a modern finish and clear views of the harbour, was marketed by Bayleys agent Victoria Bidwell as an exceptional buying opportunity.
“Now offered for sale by mortgagee instruction, this is your chance to secure an exceptional property in a tightly held Devonport location — at incredible value,” her listing on OneRoof stated.
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“Positioned above the waterfront with sweeping views of the harbour and city skyline, this vibrant and stylish character home is beautifully renovated but still offers opportunity for further development - offering a golden opportunity for savvy buyers to act fast.”
The listing said the house was full of personality and charm, noting that the owner’s thoughtful renovations had elevated the home’s appeal. There was a striking designer kitchen with marble bench and a separate scullery, as well as expansive light-filled living and superb indoor-outdoor flow to decks which led to the garden.
“Act now – mortgagee sales in Devonport are incredibly rare,” Bidwell wrote.
The listing is still live, and OneRoof has reached out to Bidwell for comment.
OneRoof recently reported that many homeowners in South Auckland were under pressure and selling at a loss or abandoning homes.
Cotality chief economist Kelvin Davidson said in the story, however, that while mortgagee sales were on the rise and the highest in six years, levels were nowhere near as bad as they were in the GFC when they peaked at 2600 annually.
For the 12 months ending in June this year there were 235 mortgagee sales, the highest in six years, according to Cotality data.
Davidson expected mortgagee sales to continue to rise in the next few months, but wasn’t “anticipating a mass crisis”.
Banking Ombudsman Nicola Sladden previously told OneRoof that homeowners with mortgage woes should contact their bank immediately and explain their circumstances.
She said it was better to find a solution other than a forced sale because the mortgagee sale process was a long and painful one, which could have debt obligations beyond the house being sold.
Sladden said banks did not want mortgagee sales any more than the owners, and there were steps involved along the way, including a letter of demand from the bank.
She said people should talk to their bank at each step and get other support, such as from a financial mentor or budget adviser.
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