An uninhabitable dump in the South Auckland suburb of Papatoetoe could be snapped up by developers for well over its ratings valuation of $765,000.
The 1950s house at 28 Cambridge Terrace, which is to be auctioned on December 17, is covered in graffiti, boasts boarded up windows and holes in the walls and is surrounded by waist-high weeds. It will, says Ray White listing agent Shane Hodgson, appeal to the small-scale builders combing the area.
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Hodgson says the owner had held on to the property for seven years and had plans to develop it.
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“He just held it, but nothing ever happened so he’s decided to get rid of it,” Hodgson said, adding that while the house had not been tenanted, there was evidence of rough sleepers squatting there.
OneRoof records show the property last sold in 2013, for $398,000, so even at sale price at CV would hand the vendor a $400,000 profit, on paper at least. The owner who sold it in 2013 had bought it in 2007, and Hodgson said he had seen photos of the house from both those sales.
“It looked OK in 2007, then it looked terrible in 2013, but by 2020 it looks a whole lot worse.”
The house sits on a 969sqm flat section that’s close to amenities. Photo / Supplied
The value of the property is in the land. With 969sqm of flat section on a street of attractive homes, within easy reach of the shopping centre, train station and motorways, plus zoning that allows high-intensity development, 28 Cambridge Terrace will appeal to developers.
The sweet spot they’re looking for, Hodgson said, was flat land around 800sqm to 1000sqm - and there’s not enough of those properties around. In fact while listing numbers are up in general, there are still more buyers than properties.
“It’s been strong down here, with buyer demand across a diverse range of values,” he said.
The house will likely be demolished by whoever buys it. Photo / Supplied
“It feels like 2015 and 2016, if not better than that peak. There’s a lot of development going on in Papatoetoe, it’s good to have new homes in the area as that boosts the whole neighbourhood.”
And while commercial developers maybe eyeing 28 Cambridge Terrace, so too, Hodgson said, were family collectives looking for land to build a family home, with a smaller unit for family or rental income.
The same vendor is also selling a half section next door at 26 Cambridge Terrace, but its cross-lease title would make it tricky to amalgamate with the full site next door. It has a ratings valuation of $560,000.
“Someone might see future potential or maybe buy the front house at the right price to amalgamate or freehold. Or it’s a good place to just build the family home.”
