Pressure triggers mass mortgagee sale of new North Shore apartments

Further signs of extreme pressure in Auckland’s volatile apartment market have emerged with the mass marketing of two new apartment buildings.

The new but entirely empty Takapuna apartment development is being sold as a mortgagee sale.

Bayleys’ Corey Knapp advertised all places in the never-lived-in, threelevel units at 42-44 Byron Ave.

And it’s not the only mass apartment mortgagee sale.

In a separate transaction, China Construction Bank (NZ) called in loans on many units at The Victor at Browns Bay.

The Herald reported last week how 33 units out of 64 in that complex are in a distressed sale, so with the Takapuna offering, 47 North Shore units are up for mortgagee sale.

Knapp’s advertisement of the Takapuna places says: “Offering up to 14 brand new terraced homes located in central Takapuna. Code compliance certificate and freehold titles are issued.”

The apartments are at the cul de sac end above the mangroves, overlooking Auckland’s CBD, the second or back block overlooking Barrys Point Rd.

Units range from three bedrooms with two bathrooms, to three bedrooms with three bathrooms and four bedrooms with three bathrooms.

On-site ground-level car parking comes with the places.

Units can be bought as a single one, in a group or in their entirety, the advertising has indicated.

Generic price estimates ranged from $2.9 million to $3.5m while rent estimates were from $790 a week to $920 a week because the places are just a few minutes walk from Takapuna’s CBD.

A search of the title showed CDF Wealth owns 42 and 44 Byron Ave, with a mortgage over the titles to Brilliant Luna Opportunity V.

CDF Wealth is owned by Hong Liu of Pt England. The company was incorporated only in 2019.

Brilliant Luna Opportunity is not registered with the Companies Office in this country.

Before development of units on the Takapuna sites began, older homes now demolished to make way for the units were empty and neighbours complained about copper being stolen. One place at 42 Byron Ave was reportedly boarded up, empty for some years with broken windows and graffiti.

Tamba Carleton, CBRE’s associate director of research, said yesterday that mortgagee apartment sales were signs of extreme pressure.

“It’s been a really tough environment for developers for the last two years. That’s because buyers are facing market uncertainty and having difficulty getting financing themselves.

“Overlaying that is the whole affordability issue, with interest rates increasing. That means affordability for home buyers is stretched.”

It was exceptionally rare for a developer to speculatively build a multi-unit residential project. That was because almost all projects required presales to get construction finance, Carleton said.

“We have been in a difficult situation lately where there is growing demand for housing but market uncertainty and lack of affordability have been preventing presales.

“The supply pipeline is really drying up.”

Bayleys’ Knapp said tenders on the Byron Ave places would close on December 1.

At Browns Bay, Auckland agents at JLL said the mortgagee appointed them.

The apartments are being sold by tender and come with car parking.

“The Victor apartments are located in the heart of Browns Bay Village.

It is footsteps to humming eateries, boutique shops, supermarkets, library, sports clubs, excellent school zones and a short stroll to beautiful Browns Bay Beach,” advertising from JLL’s John Davies and Tommy Zhang said.

The block has 56 units and eight penthouses. Units are a mix of studio, one-, two- and three-bedroom apartments.

A title check showed many units in the block are owned by East Tamaki No 70, whose directors include Yang Liu, who is also a shareholder.

Ockham Residential has also repaid deposits on one huge new Auckland block it planned recently.

Ockham’s Mark Todd said buyers in the 165-unit The Feynman would be repaid