Investor interest in Auckland real estate remains high despite the Government new tax rules, with a block of units selling for close to $4 million this week.
An investor snapped up 1 Hazel Avenue, in Sandringham, for $3.875 million after strong bidding at Barfoot and Thompson’s auction on Wednesday.
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The brick and tile property – which consists of four two-bedroom units – sold for more than half a million dollars above the reserve and more than $1 million above the combined rateable value, said Barfoot & Thompson agent Paul Donovan who marketed the property.
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“People still want to put their money into property. What’s the alternative?” he said.
“I think people are looking more at the development potential now than they were last year.”
Bayleys agent Stephen Scott, who sold a block of four two-bedroom flats units in Penrose this week for $1.9 million, said that old school, well-built units would always be in demand.
A block of four flats at 123 Penrose Road, in Penrose, Auckland, sold for $1.9 million this week. Photo / Supplied
Bayleys agent Stephen Scott, who sold a block of four two-bedroom flats units in Penrose this week for $1.9 million, said that old school, well-built units would always be in demand.
“They’re always going to hold a lot of weight in people’s hearts. We had over 50 enquiries for 123 Penrose Road, and four people bidding at auction.”
“You never really know where it will go, but the sale price of $1.9 million exceeded the reserve. It’s mixed housing suburban zone, so it’s a prime opportunity for developers or to add value. A block on a similar section at Portman Road, in Mount Wellington, now has eight terrace houses on it,” he said.
He said the buyers had missed out on other investments. “Investors are still buying. People don’t want to leave their money in the bank earning nothing. They expect the capital gains will take care of the tax changes.”
