A run-down house in Auckland's Glen Innes has sold under the hammer for just over $1.8 million.
The three-bedroom home, which had been valued at just $20,000, was snapped up by a developer for the land it sits on.
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Competition for the Farrington Street property was strong, with bidding starting at $1.2m, and quickly going on the market at $1.675m.
Barfoot & Thompson agent Robin Liu said five developers made bids on the property. The buyer is a local developer who plans to build six houses on the 743sqm site, which is zoned for terrace housing and apartments.
The property had a 2017 CV of $1.08m, $1.06m of which was for the land. “It is not a surprise to pay $1.7m, $1.8m and even above for a section that is zoned for development,” he said.
A do-up on future urban development zone site in Alfriston, South Auckland, sold under the hammer for $2.574m, over double its CV. Photo / Supplied
The Farrington Street property was last sold three years ago for $988,000, according to OneRoof records, meaning the vendors made a $862,000 profit on paper at least.
Another large South Auckland property with no services and just a water tank, but with future development potential sold under the hammer for $2.574m, more than double its CV.
The three-bedroom deceased estate on Ranfurly Road, in Alfriston on the fringes of Manukau city, sits on a spacious 4044sqm section zoned for future urban development.
Ray White agent Monika Maynard, who marketed the property, says the zoning means the council will approve its development by 2043 so attracted many developers and land bankers among the 30 registered bidders to Tuesday's auction.
“It was one of the smallest sections in the area with no services on site, a water tank. There [are] costs involved in developing it and someone paid a lot of money for it, but come a time when they can develop, the value will increase,” Maynard said.
“There’s not much land left and anything that’s left is being fought over.”
The property has only had one prior owner and has a rating valuation of $1.275m with a land value of $1m.
Ray White Manukau director Tom Rawson said there were eight properties sold on the night with a combined value of $12.7m and 210 individual bids.
“I noticed multiple buyers bid on one property, miss out on that one and then have a crack at the following properties.
“It was almost as if the cash was just burning a hole in their pockets, and they came to the Ray White auctions to spend it,” he said.
