- A four-bedroom house in Auckland’s Remuera sold for $2.4m, $350,000 over reserve.
- The sale signalled a return of FOMO in Auckland’s development market, with six developers bidding.
- Ray White agent Banson Chong noted increased confidence, with buyers looking for premium sites in central Auckland.
A developer snapped up a four-bedroom house in one of Auckland’s top suburbs at an intense auction last week.
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Ray White Remuera agent Banson Chong told OneRoof that the sale signalled the return of FOMO - fear of missing out - to Auckland’s development market.
Chong said six developers had registered for the auction, with another six waiting on the sidelines with conditional offers if the property failed to sell under the hammer.
The last time he saw that many developers on the hunt for premium sites was in 2021, at the height of the housing market boom.
The Grand Drive property, which sits on 720sqm of land zoned Mixed Housing Suburban, sold for $2.4 million after just 21 days on the market.
The vendors had moved to Australia and wanted a quick sale. Photo / Supplied
The property offered buyers a 720sqm site zoned Mixed Housing Suburban. Photo / Supplied
The winning bid was $350,000 over the reserve, Chong told OneRoof. “We achieved $3333 per square metre. That’s a similar price to back in 2021.”
Chong said the vendors had moved to Australia and wanted the Grand Drive property sold as soon as possible.
A feasibility study had been conducted with a planner outlining several development options, which included keeping the current property but building a duplex at the bottom of the section, through to building standalone houses, or an option for townhouse/terrace houses.
“But I don’t think the townhouse will be a good idea considering the location,” Chong said.
The agent sold new-build homes on Grand Drive late last year. The buyers were working professionals with school-age children. “I think there’s demand for freestanding properties on Grand Drive,” he said.
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He said developers were feeling more confident about building freestanding houses in certain areas, and were buoyed by the recent mortgage rate cuts. The oversupply of townhouses and terrace houses in the city suggested buyers were looking for something different.
“Most resource and building consents are for townhouses or terrace houses. Demand is not catching up,” Chong told OneRoof.
“We obviously have a supply problem in Auckland. I think it traces back to 2021, when the property market was hot and everyone wanted to subdivide as many properties as possible to maximise the profit.”
He said smart buyers were looking for land-banking opportunities in prime locations. “They can possibly achieve $13,000 per square metre around early to mid-next year, which gives them a lot of confidence.”
Even developers who had been building in the city’s southern and western suburbs were eyeing central locations, where turnover was better. “You can get your property sold within a shorter period of time. Although you need to sacrifice some of the profit margin, but the certainty is better than the price.”
- Click here to find more properties for sale in Remuera
