Bach tops list of hottest sales
A property in one of New Zealand’s most exclusive bach suburbs sold for more than three times its paper worth, topping the 2016 list of properties selling above their capital value.
The beachside bach, on Matariki St in Omaha, north of Auckland, sold in August for $3.3 million, despite its capital value (CV) sitting at $990,000.
The sale represented the highest percentage margin above CV in 2016, according to Homes.co.nz.
Homes.co.nz head of marketing Jeremy O’Hanlon said it was no surprise that a property in Omaha topped the list.
‘‘Aggressive competition and premium fit-outs can play a large part in a sale price, but not register with the CV calculation,’’ he said.
The fact Auckland houses were on average selling for 43 per cent above their CV showed ‘‘how unhelpful they are to those trying to understand value’’.
That was one of the reasons the company created monthly estimated values on its website, O’Hanlon said.
‘‘I’d be wary of using the CV for anything more than an indication of the rates you’ll have to pay.’’
Real Estate Institute of New Zealand spokesman Bryan Thomson said he felt such comparisons were irrelevant.
‘‘The CV is set for rating purposes; it’s not set to reflect the market value.
‘‘The reality is, I could find you a property which has been renovated and not re-rated and sold for four times its CV.’’
2016: Homes sold well above CV
Within Auckland:
10 Matariki St, Omaha: Sold in August for $3.3m with a CV of $990,000.
2/66 Arawa St, New Lynn: Sold in November for $1.376m with a CV of $460,000 (three times CV).
2/156 Coates Ave, Orakei: Sold in February for $2.05m with a CV of $800,000 (two times CV). Outside Auckland:
15 Mills Rd, Brooklyn, Wellington: Sold in June for $970,000 with a CV of $400,000 (2.4 times CV).
8 Valley View, Mount Pleasant, Christchurch: Sold in November for $896,000 with a CV of $340k (2.6 times CV).
37 Man St, Queenstown: Sold in April for $1.81m with a CV of $680,000 (2.7 times CV).