Supply forecasts offer advantage at Mt Eden property
A prime development site in a strategic city-fringe growth hub offers an opportunity for investors and developers to get in before the train leaves the station, Bayleys salespeople say.
Bayleys Auckland Metropolitan Markets associate director Damien Bullick says the property is offered at a time of increasing demand for housing options, particularly as migration reaches a multi-decade high and the forward-looking supply line weakens.
He is marketing the part-tenanted opportunity at 177A Mt Eden Rd with Bayleys colleagues Alan Haydock and Phil Haydock by tender closing 4pm, Tuesday March 12, unless sold prior.
“This is a rare chance to secure an affordable Mount Eden development site in the sought-after double Grammar school zone while generating meaningful holding income,” Bullick says.
“Existing improvements comprise three residential flats, two of which are currently tenanted, and a third offers the opportunity to increase income through add-value works or redevelopment,” he says.
“A tactical location close to the under-construction Mt Eden City Rail Link station, motorway interchanges, Auckland’s CBD, and Mt Eden village provides immense value with scope for immediate development, land banking, or add value investment purposes.”
The freehold development site features a 688sq m area in Business–Mixed Use zone, providing for an intensive mix of commercial and residential options and a build height of 18m.
Existing improvements comprise a two-level villa with a threebedroom flat on the upper level and a vacant two-bedroom dwelling on the ground floor.
In addition to the villa, there is a second two-level stand-alone building that includes a onebedroom flat with an internally accessible garage.
Haydock says the threebedroom flat and separate onebedroom dwelling are presently leased on a residential basis to two tenants.
This provides a gross annual return of $73,840.
He says the potential for growth in a strategic location will be of keen interest to investors who have been watching residential demand dynamics over the past 18 months.
“Recently, more challenging economic conditions have meant fewer residential construction projects reaching the completion phase.
“At the same time, demand for housing from record-high migration appears to be steering Auckland towards another supply shortage, presenting investors with the chance to leverage current conditions and deliver a rewarding development project.
“Completion of the nearby CRL – which will mean a less than 10-minute train ride for commuters into the CBD – will be a boon for the local area which has welcomed many new residents over the past decade as new apartment developments have been particularly well received by the market.
“Given a high-profile reputation as one of Auckland’s oldest and most prestigious suburbs, properties in Mt Eden have a demonstrated history of solid capital growth, which works alongside current market dynamics to elevate this opportunity as worthy of consideration for developers, add value investors and those building their portfolio with strategic land acquisitions.”