‘Bargains’ at apartment auction

Anne Gibson property editor

An Auckland apartment auction this week reached what an agency chief called “bargain basement” levels, with one place selling for only $130,000, about a tenth of the city’s $1.04 million average current QV house value.

Martin Dunn, City Sales managing director, said the two-bedroom 41sq m apartment was in Quay Park’s The Landings at 8 Ronayne St, off Beach Rd, between Parnell and the CBD.

“It was like pulling teeth,” Dunn said of extremely low, slow bidding. “It sold eventually.”

The sixth-level apartment has no balcony, one bathroom and is in a big block on leasehold land, he noted, which depresses values and sales price. No carpark comes with the unit, depressing it further and the block has suffered weathertightness issues.

Annual rates are $872.62 and annual body corporate levies are $5320 including ground rent of $2296, a City Sales information sheet showed.

Ngati Whatua Orakei Whai Rawa owns the land and owners must pay annual leasehold fees.

Dunn said a two-bedroom apartment in Hudson Brown on nearby Mahuhu Cres in the Quay Park area sold for only $220,000.

That 70sq m fourth-floor place was also on Ngati Whatua Orakei Whai Rawa leasehold land, he noted. Council rates there are $1607.59 annually and the body corporate levy is $9003 a year.

“I regard these sales as absolute bargain basement,” Dunn said, adding there were specific reasons for prices which included that the titles were not freehold so the apartment buyers would never own the land beneath their blocks.

Dunn said further low-priced apartments would be auctioned soon, providing opportunities for bargain hunters. “[This is] a funny time. A confidence flat patch [in the run-up] to the election?” he said.