Run down and dangerous but still worth $677,000

IT COULD be sale of the century, or it could be New Zealand’s most over-priced property – it’s hard to tell in Auckland’s super-heated property market.

A derelict home in desperate need of a bulldozer has sold for $677,000, more than twice its land value, at yet another fierce Auckland auction.

The Mangere Bridge bungalow was so run-down children were banned from entering the property before the sale.

Real estate agent Michele Farnham said house hunters who ventured inside found extensive water damage, broken windows and an unusable bathroom and kitchen. ‘‘No one had lived in the house for about 12 years so anything of value was long gone.’’

Although the property was in a less-desirable area of Mangere Bridge, it still had some selling points for its six bidders.

It boasted upper harbour views, an adjoining marine reserve and an 822-square metre section.

The winning bid was $677,000, more than double the $305,000 land valuation.

Farnham estimated the cost of bulldozing the house and rebuilding would push the final price tag to more than a $1 million, a level ‘‘just beyond belief’’.

‘‘We had hoped for a good price and it was a really good price.’’

Mangere Bridge in the south of the city, close to Onehuinga and boasting motorway access, has seen a surge of potential buyers in the past few months.

Farnham has watched as firsthome buyers get out-bid by eager investors seeking up-and-coming suburbs.

‘‘It is becoming so white collar workers can’t afford to buy properties in traditionally blue collar suburbs.’’

Parents are downsizing their family home so they can help their children into the housing market, she said.

A modest two-bedroom unit in the Auckland suburb of Mt Albert sold for 77 per cent above its current valuation on May 13.

The Preston Ave property sold for $797,000, well above its $450,000 CV.

It came the same day the Reserve Bank announced it would force residential property investors in Auckland to have a minimum deposit of 30 per cent.

‘‘I don’t think it’s going to make the slight bit of difference,’’ Farnham said.

Investors, particularly those from overseas, seemed to be willing to pay anything to get into the New Zealand property market, she said.

No one had lived in the house for about 12 years so anything of value was long gone . . . it was a really good price. Michele Farnham

It might look like a deathtrap, but the fact it sits on a 822-square metre property likely helped this Mangere Bridge house fetch more than $670,000 at auction.