In most of the country, getting a foot on the property ladder means a budget of around $500,000, maybe $600,000.
For many parts the country, getting a foot on the property ladder can cost between $200,000 and $500,000. Even in Auckland, buyers can secure a one or two-bedroom apartment, albeit a small one, for less than $300,000
But in New Zealand wealthiest suburbs, entry-level properties can fetch more than triple that amount, as auctions this week have shown.
An attractive brick and tile two-bedroom unit sold under the hammer at Ray White Remuera for $1.01 million. Four active bidders were competing to secure something in the suburb.
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Do-up properties are fetching three or four times that amount, and the mega-wealthy have to hold off selling because they’d struggle to replace their $20 million mansion.
Ray White Remuera agents Steve and Nila Koerber, who were marketing the 1970s-built unit at 4/672 Remuera Rd say that is very affordable for sought-after Remuera, where median property value is $1.815 million, according to latest OneRoof Valocity figures and the top settled sale this year is $9.5 million (and there are higher sales yet to settle and appear in the figures).
An entry-level Herne Bay flat at 13 Emmett Street sold at auction this week for $1.12 million. Photo / Supplied
Koerber says there were less than 10 sales under $1million in Remuera in the last quarter and that number has been gradually dropping.
“It won’t be long until this kind of property in Remuera becomes a pipe dream and my prediction is that in two years you won't be able to buy under a million in Remuera,” he says.
The 130sq m unit sold to a local investor couple, who were competing against another investor and two bidders who hoped to be owner occupiers.
“They bought it to rent now and trade to something later. If they need a one-level place to downsize to, they have somewhere to go.”
Another entry level one-bedroom apartment in one of Remuera’s most prestigious streets, Victoria Avenue, is on the market asking $995,000 was after it was passed in at auction.
Ray White Remuera agent Ben Ryken says the 109sqm garden apartment at 1/59 Victoria Avenue attracted a lot of interest and would sell in the next few days.
https://www.oneroof.co.nz/159-victoria-avenue-remuera-auckland-city-auckland-1486042
Located in the heart of Remuera, the 1970s Tudor-style building has relatively high corporate fees of about $7000, which not every buyer is prepared to pay, Ryken says.
A garden apartment at 59 Victoria Avenue is asking $995,000. Photo / Supplied
“We are finding that there are a lot of mum and dad investors who want to put their money into property instead of banks, but they need better returns and less operating costs,” Ryken says.
OneRoof records show the apartment was last sold for $914,000 in 2018 and has a CV of $1,020,000.
Across town, in Auckland’s most expensive suburb, Herne Bay, Bayleys agent Jono King, sold a smartly renovated unit, one of six at 13 Emmett Street. Under the hammer it reached $1.12 million, as three bidders drove up the price.
King says the apartment, which has a council valuation of $880,000, is a good entry level into a desirable suburb where the median value is $2.66 million and top sales reach $8 million this year.
“It’s really hard to find something like this in Herne Bay. Apartments are good value; they offer a lot especially in the city fringe suburbs people want.”
While entry level properties in cheaper suburbs are mainly attracting investors and first home buyers, in Herne Bay King says buyers are mainly home owners looking to downsize or people with second beach homes needing a city pad.
An apartment in the Turing building, 2 Ariki Street Grey Lynn, sold for $1.601 million. Photo / Supplied
King has seen a noticeable lift in prices this year, as buyers test out apartment living or decide to spend more time at the beach house, so only need a smaller city base.
Last week alone he sold six apartments around the city fringe, with a lower floor apartment in the Turing building at 2 Ariki Street on the Grey Lynn ridge fetching $1.601 million at auction after it was brought forward after only two weeks of marketing.
