How much value does resource consent add to a property? In the case of 28 Clevedon Road, in South Auckland, more than half a million dollars.
The three-bedroom Papakura home sold on Sunday for $1.47 million, less than a year after the vendor purchased it for just $840,000.
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No significant improvements had been made to the property in the 11 months since its sale in March 2020, apart from the lodging and approval of plans to build seven dwellings on the 1012sqm site.
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Ray White Manukau agent Karam Hundal, who brokered the most recent sale, said the council approval of the development plans were a big drawcard and saved the buyer about nine months of paperwork.
“It saves buyer a lot of time and it’s a good return for a vendor,” Hundal said.
The sale price was a massive improvement on the property’s 2017 of $650,000, reflecting the heat in the current market and the value of the property’s Mixed Housing Urban zoning under Auckland’s Unitary Plan.
Ray White Manukau director Tom Rawson said buyers in the market for development properties saw the value in listings that had resource consent already taken care of.
“When we sell a development property it’s all subject to consents but with resource consents done, it’s already guaranteed, just get a building consent and go ahead,” he said.
14 Fleming Street, in Manurewa, was sold with architect plans for seven dwellings. Photo/ Supplied
Ray White Manukau has seen a lift in buyer demand for properties with development potential.
Last week, it sold a four-bedroom house on a 1275sqm section for $1.2 million – almost double the 2017 CV.
A pre-auction offer on 14 Fleming Street, in Manurewa, saw the buyer walk away with a property that came with concept plans for seven freestanding dwellings, subject to council approval.
The buyer was a first-time developer and having the plans as part of the sale had given them more confidence, said Hundal, who listed the property.
He said that selling with plans or resource consent in place was a smart move for vendors to take.
“The plans will attract more buyers and with the competition, the price goes up too. If you have resource consents approved, developers are happy to pay anything.”
Another South Auckland property with development potential sold under the hammer at Ray White Manukau’s auctions last week for $1 million, with six active bidders competing.
28 McKinstry Avenue, in Mangere East, sold under the hammer for $1 million last week. Photo / Supplied
Ray White agent Jasveen Singh, who was the listing agent, said before sale that while existing dwelling needed “TLC” to meet the new tenancy standards, it was a perfect project for renovators, investors and developers.
“The original kitchen and décor are still in place however a lick of paint and renovation could quickly transform it into something very special,” he said in the listing.
Ray White Manukau closed nearly 100 sales in January - a record in what is generally a quiet month for the real estate industry.
The Ray White Group across New Zealand saw a significant rise in property sales for January 2021. The overall volume lifted to just under $1 billion worth of sales, which is an increase of more than 50 per cent on the same time last year.
Ray White New Zealand CEO Carey Smith said that group's January results reflected the momentum in the market currently, with first home buyers and investors driving the sales.
“Investors are potentially moving ahead of the LVR requirements and are now the leading buyer classification, with the last quarter of 2020 and January 2021 showing they purchased 28 per cent of all property across the [Ray White] network."
