- An Auckland developer is selling a St Heliers demolition site, expecting a loss from the $8m purchase.
- The vendor planned to build apartments and homes but is now auctioning the properties to fund other projects.
- Interest has been shown by buyers considering different development plans, with the location described as “A-grade”.
An Auckland developer is expecting to take a hit with the sale of a half-demolished site in St Heliers.
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Bayleys Remuera listing agent Banson Chong told OneRoof that his client paid close to $8 million for 127 and 129 St Heliers Bay Road in 2021.
The vendor had planned to develop the two properties and had already demolished one of the homes at the corner site. However, they were now seeking to cash up and fund other projects.
Chong said his client understood they would likely get less than what they paid for the properties at market peak.
“The vendor is a central Auckland developer. They purchased the land at the peak of the property cycle , and they paid close to $8 million, including GST.”
The vendor had already demolished the house at 129 St Heliers Bay Road and had drawn up plans to demolish the large home at 127 and replace it with an apartment block with eight units.
The vendor paid close to $8m for the site. They planned to replace the house at 127 with an apartment block. Photo / Supplied
Listing agent Banson Chong says he’s already fielded interest in the site from potential buyers. Photo / Supplied
Chong said his client had building consents for four freestanding homes at 129 St Heliers Bay Road.
“But the plan changed, and we’re having an auction for both properties,” he told OneRoof.
“Before we listed the properties, I had a very deep conversation with them. I said, ‘Look, you’re not going to get what you paid. Are you happy to take a significant loss?’ They said yes, they were happy to do so. They understand the market situation.”
Chong was expecting pre-auction offers, telling OneRoof he had already fielded interest from one buyer who wanted to buy the combined site, and another who only wanted one of the properties.
Both parties were doing their due diligence, he said.
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Buyers could continue with the original plans or make their own plans. One potential buyer was looking at redoing the consents to build eight to 10 freestanding homes, he said.
“Freestanding houses in central Auckland, especially in Remuera and St Heliers, are selling fast.”
Chong said the location was “A-grade”, noting that suburbs further out of Auckland City were suffering. “From my observations, West Auckland and South Auckland are doing quite badly.”
He said he was helping some West Auckland and South Auckland developers find sites in the central city. “People just keep ringing me. ‘Hey, Banson, do you have any more?’”
- 127-129 St Heliers Bay Road, St Heliers, Auckland, goes to auction on July 15
