BAYLEY’S LATEST COMMERCIAL AUCTION RESULTS

The full results of this week’s Bayleys commercial property auctions are listed below:

4-8 Dunn Street, Kaitaia: 1,228m²  Carters hardware store on 4,155m²  industrial zoned site sold for $1,275,000, at an 11% yield. Leased to Carter Holt Harvey  for 15 years from August  2007 with two 6-year rights of renewal at $140,000 net + GST/year. Agent: Alan Broadbent, Bayleys Northland
94 Normanby Street, Dargaville: New 200m²  building  on 759m²  main street site with 9 carparks sold for $885,000, at a 6.6% yield.  Developed by Wallace Development  Co, the property is leased to Rabobank for 9 years from February 2015 plus two  3-year rights of renewal at an initial rent of  $58,550 net + GST/year, with annual CPI + 1% fixed increases. Agent: Ross Blomfield, Bayleys Northland
276 Te Atatu Road, Te Atatu South: 3,298m² residential development site, currently comprising a single large dwelling with swimming pool in landscaped grounds, sold for $1,780,000, at $534/m², to a buyer from mainland China. Currently zoned Living 1 (450m² per site subject to council approval)  with potential for 6 townhouses and zoned Terrace Housing & Apartments under Proposed Auckland Unitary Plan. Agents: Quinn Ngo & James Chan, Bayleys Auckland.
64 Shoreham Street, Avondale: Two 2-bedroom flats & 1-bedroom flat in brick & tile dwelling located on Residential 5 zoned 612m² site sold for $1,166,000 at a 3.5% gross yield on annual rent of $42,640 /year. Agents: Quinn Ngo & Harry Cheng, Bayleys Auckland.
1 Exmouth Street, Eden Terrace: 655m² high profile corner bare land site zoned Mixed Use, currently used for carparking, Sold for $1,920,000 at $2,931/m². Agents: Owen Ding & James Chan, Bayleys Auckland.
23 Edwin Street, Mt Eden: 245m² office/showroom unit plus 7 carparks in Zone 23 complex sold for $1,150,000 at 7.6% yield.  Two years remaining on 6-year lease returning $87,160 net + GST/year. Agent: Clint Barber, Bayleys Auckland.
49 Buckland Road, Mangere East: Details: 154.5m² purpose built childcare centre, licensed for 39 children, on 698m². Main Residential zoned site sold for $1,320,000, at a 5.9% yield to buyer from mainland China. Leased to Evolve Group 3 Ltd  for 15  years from December  2014, with  three  5-year rights of renewal, returning $77,500 net + GST/year, with annual CPI reviews & to market every 3 years. Agents: Toni Robertson, Bayleys North Shore Commercial;  Tony Chaudhary, Bayleys South Auckland  & James Chan, Bayleys Auckland.
Unit 2, 20-22 Dunrobin Place, Highland Park, Pakuranga: Details: 110m² unit in converted former cinema premises in Highland Park Shopping Centre sold for $972,000, at a 5.4% yield. Occupied by Coffee Club on 8 year lease from March 2014 plus 8-year right of renewal  returning $52,500 net + GST/year, with fixed annual 3% increase. Agents: Quinn Ngo, Sunil Bhana, Bayleys Auckland & Tony Chaudhary,  Bayleys South
Auckland.
Unit 3, 20-22 Dunrobin Place, Highland Park, Pakuranga: Details: 82m² unit occupied by Pita Pitt sold for $591,000, at a 5.4% yield. 10 year lease from March 2014, plus two 5-year rights of renewal, returning $32,000 net + GST/year, with annual CPI increase capped at 3%. Agents: Quinn Ngo, Sunil Bhana,  Bayleys Auckland & Tony Chaudhary,  Bayleys South Auckland.
Unit 5, 20-22 Dunrobin Place, Highland Park, Pakuranga: Details: 88m² unit occupied by Tank Farm sold for $600,000, at a 5.8 % yield.  8 year lease from June 2014, plus two 6-year rights of renewal, returning $35,000 net + GST/year, with fixed annual 3% increase. Agents: Quinn Ngo, Sunil Bhana,  Bayleys Auckland.
93 East Tamaki Road, Papatoetoe: Veterinary clinic located on Main Residential  zoned 872m² site sold for $860,000 at a 5.6% yield. Leased for 6 years from April 2013, with three 6-year rights of renewal, returning $48,000 net + GST/year. Agents: Paul Dixon,  Bayleys Auckland & Tony Chaudhary, Bayleys South Auckland.
Unit D, 7 Ryan Place, Papatoetoe: 240m² industrial unit sold for $380,000 at a 7.9% yield. New 3-year lease to established tenant returning $30,000 net + GST/year. Agents: Nick Bayley & Dave Stanley, Bayleys South Auckland.

Large Surge In Auckland House Prices

Auckland house prices surge 13 per cent
Monday Apr 13, 2015


Median house prices excluding Auckland were flat in March, but there was a 13pc jump in Auckland’s median house price. Photo / NZ Herald
Auckland house prices surged 13 per cent annually and are up $83,000, from $637,000 last March to $720,000 last month.

Real Estate Institute figures just out for the busiest month of the year showed Auckland’s strength drove the New Zealand-wide market up fast too: the national March median was $475,000, up $35,000
or 8 per cent compared to March last year and an increase of $45,000 or 10.5 per cent from February 2015.

But taking Auckland out of the mix led to a far less spectacular national result
“Excluding the impact of the Auckland region, the national median price was flat compared to February at $350,000 and $5000 (+1.4 per cent) higher compared to March 2014,” REINZ said.
Colleen Milne, REINZ chief executive, explained.

“March is the strongest sales month of the year, with almost 1400 more sales than for any of the past 12 months. While the increase in the number of sales is more or less spread across the country, the movement in the national median price is almost entirely an Auckland effect,” she said.

link:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11431822

House No 2 Breaks Yesterday’s Record

Our First Home Titirangi property sells for $721,000

Monday Apr 13, 2015

The second property in TV One’s Our First Home has sold at auction tonight, exceeding expectations as it sold for $721,000.

The Schreuders bought the Titirangi property for $480,000 before embarking on the 10-week renovation project. The reserve was set at $530,600, leaving them with a sizeable profit of $190,400.

Bidding started at $540,000 and quickly rocketed up past $700,000.

Last night, the Gourleys made $143,500 profit after selling their three-bedroom Avondale home for $720,500.

Link:

www.nzherald.co.nz/entertainment/news/article.cfm?c_id=1501119&objectid=11431943

 

COMMERECIAL BOOMS

If you added in what sold for under $5M the figure would likely double

Commercial property sales surged last year with overseas buyers accounting for 57% of transactions priced above $5 million

April 13, 2015 – 12:45pm, Greg Ninness

There was a huge surge in sales of major commercial properties last year with retail properties leading the way, property services company JLL says.

According to JLL’s New Zealand Transaction Trends report, which monitors commercial property sales priced at $5 million or more, the value of major retail properties sold last year was up 478% compared to 2013.

A total of $2 billion worth of major retail property sales occurred last year, an all time high which almost eclipsed $2.1 billion of major office building sales.

Sales were buoyant across all three of the major commercial property types monitored by JLL, with a total $5.1 billion of major transactions occurring last year,  with office sales up 79% compared to 2013 and industrial property sales up 32% compared to 2013.

Overseas buyers accounted for $2.9 billion (57%) of sales, an all time high.

link:

http://www.interest.co.nz/property/74959/commercial-property-sales-surged-last-year-overseas-buyers-accounting-57-transactions

$143,000 PROFIT IN ONLY 8 WEEKS

Our First Home property sells for more than $700,000
Monday Apr 13, 2015

The first of three houses from reality television property show Our First Home sold at auction last night for more than $700,000.

The three-bedroom Avondale house went under the hammer at a live auction on TV One, after 10 weeks of renovation work.

The final sale price of $720,500 saw the Gourley family, originally from Tauranga, bank a $143,500 profit – setting an “impressive” benchmark for the other families, TVNZ head of content Jeff Latch said.

Link

http://www.nzherald.co.nz/entertainment/news/article.cfm?c_id=1501119&objectid=11431739

Auckland Up-Rest Struggling

Auckland housing index climbs another 2% above last peak as rest of country struggle

 

Quotable Value Ltd’s residential price movement index, out last week, shows the value of housing in Auckland rose another 2% above the 2007 market peak in March alone.

The index for the Auckland region rose from 43.8% above that 2007 peak in February to 45.8% above at the end of March.

Southern suburbs on the isthmus have made the biggest gain, 60.2%. The average value in the isthmus’s eastern suburbs is closing in on $1.2 million ($1,195,389), and coastal North Shore is $120,000 behind.

Outlying areas picked up ground over the summer, but the areas to make the strongest gains over the last 3 months were the southern & eastern isthmus suburbs, coastal North Shore, Manukau & its eastern suburbs. Topping the lot with an 8.2% gain over 3 months were the Hauraki Gulf islands, but, as usual, Statistics NZ warned to treat the gulf figures with caution for lack of volume.

link :

http://www.propbd.co.nz/auckland-housing-index-climbs-another-2-above-last-peak-as-rest-of-country-struggles/

 

 

 

RECORD SALE -RECORD PRICES-BARFOOT’S MARCH

Barfoot & Thompson sold a record number of homes last month

Auckland’s largest real estate agency recorded what it described as an “unprecedented” level of sales activity in March.

Barfoot & Thompson sold 1597 homes last month, the highest number it has ever sold in a single month, while the average selling price hit a new all time high $776,729.

However the median selling price of $711,000, although well up on February’s median of $686,500 was still slightly below the all time high of $720,000 set in December last year.

link:

http://www.interest.co.nz/property/74863/barfoot-thompson-sold-record-number-homes-last-month-quarter-them-selling-more-1-mill#comment-807648

HOW TO GROW YOUR WEALTH THROUGH COMMERCIAL PROPERTY

 

 

AN INTRODUCTION INTO COMMERCIAL PROPERTY

 

How to GROW YOUR WEALTH from this profitable sector of the investment market.
Tuesday 28th April Rendezvous Hotel Mayoral Drive Auckland 7pm.
Commercial property is completely different from residential property and can provide a large number of opportunities to increase wealth and security without relying on inflation or any particular market conditions.
Speakers:
Olly Newland   F.N.Z.IM. , Dip. Man., M.P.I.N.Z., Authorised Financial Adviser
Olly’s forty-something years of investment experience has given him a unique insight in to the New Zealand property market. He is now considered one of this country’s pre-eminent property investors and advisers.
Carl Burling  N.Z.C.E. , A.C.E.M.
With over 20 years successful property investing experience in both the residential and commercial sectors, Carl is familiar with the challenges and opportunities in commercial property investment. Carl is Olly’s business partner and co – owns several commercial properties as well as providing full property management and financial services for a wide variety of clients in both the commercial and residential markets..
Tony Milicich    Registered  Financial Adviser (RFA) Member of Professional Advisers Association (PAA)
Tony has over 40 years’ experience in the banking and finance having held senior positions within both. He now operates as an independent mortgage broker assisting his clients to secure finance for both their residential and commercial property investments.
John Berry ATAINZ, ANZIM, Dip Bus, Registered Financial Advisor, Member of Institute of Directors
John is a highly successful chartered accountant and business adviser with expertise in property accounting for commercial and residential investors.
Learn about…
• Residential property investment as compared to commercial property investment.
• The different classes of commercial properties and how to profit from them.
• How to rapidly double the value of a commercial property over a very short time.
• The importance of leases as they effect capitalisation rates, and values.
• Tax and GST matters and how it effects commercial property.
•       How to organise the best finance from banks and other sources for the funding of commercial property.
• How to double the value of a commercial property over a short time.
• Finance mortgages and banks.
• How to understand and improve the different types of tenancies and leases.
• The 5 big mistakes commercial investors make and how to avoid them

BOOK YOUR TICKETS NOW.  FOR MORE DETAILS  0800 522 622 or go to our website and click on the “contact ” tab and fill in your details.

VISIT OUR FACE BOOK PAGE FOR MORE INFO.

The Steady Rise Of Rents – And Not Before Time

Property: Rents in Auckland rise up to 10%

Renters are paying up to $60 more a week than they were a year ago for properties across some of Auckland’s 30 suburbs.

Prices for all suburbs have gone up for two and three-bedroom properties according to figures from Crockers.

Yvette Martin and her flatmates pay $640 a week. Photo / Nick Reed

The property management company looked at median prices over the six months to February 2015, compared with the same period last year.

In Devonport, rents for two- and three-bedroom houses have increased on average $60 per week, to $495 (up 13 per cent) and $678 (up 10 per cent) respectively. The next biggest increases were in Takapuna and Milford, up 10 per cent for two-bedroom houses to $531 per week.

There were also big rises in Meadowbank, Glendowie and Remuera South where two and three-bedroom rentals have increased 9 per cent, up to $450 and $653 per week respectively.

Read the rest here:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11425034

Latest Commercial Sales – Barfoots

Barfoot & Thompson Auckland  - Latest Auction  Sales


68 Sale Street – Screentime NZ & Others
Date: November 2014    Price: $6,100,000    Analysis: $2,298/m2    Yield: 4.31% Two commercial buildings located on a 1381 m2 site with dual frontage to Sale Street and Cook Street zoned CBD (SMA3) Victoria Quarter Zone under the proposed Unitary Plan. 68 Sale Street is a 5 level fully leased building with offices and car parking constructed circa 1980s with a 71 % NBS (B Grade) seismic rating. 109 Cook Street is a 3 level partially leased office building constructed circa 1960s with a 90 % NBS (A Grade) seismic rating. At the time of sale the property was returning a combined total rental of $263,084 pa.

597 New North Road – First Scene
Date: November 2014    Price: $3,200,000    Analysis: $2,664/m2    Yield: 5.63%  A substantial two level building constructed circa 1970. Located on an elevated 1378 m2 site with dual frontage to New North Road and Western Springs Road. Due to the rising contour of the
site, cart docks and pedestrian access are provided to both levels of the 1,201 m2 building.
Includes good onsite carparking off both streets. At the time of sale the property was returning
$180,000 pa with the lease expiring at the end of January 2016.

46 G Stanley Street – Ricoh NZ Ltd
Date: November 2014    Price: $280,000    Analysis: $3,733/m2    Yield: 7.43%
A ground floor strata office unit within the Carlaw Commercial Centre, a courtyard office development on the corner of Stanley Street and Nichols Lane. Includes 2 carparks. At the time of sale the property was returning $20,800 pa with 6 months of the lease term remaining. The rate excluding car parks equates to approximately $3,000 /m2.

60 Airedale Street – Education & Others
Date: August 2014    Price: $6,000,000    Analysis: $3,006/m2    Yield: 5.54%
A 11 storey commercial building including nine office floors, two residential penthouse and one level of basement parking for 17 cars. The building is situated on a 441 m2 site 100 metres north of its intersection with Symonds Street. The building was built in 1989 and has a seismic rating
80 %. At the time of sale 4 floors were occupied with new 6 year leases with demolition options returning a total income of $332,600 pa.

660 Rosebank Road – Paint & Decor Ltd
Date: November 2014    Price: $1,175,000    Analysis: $2,295/m2    Yield: 4.68%
A single level 1990s roadfront industrial building providing 262 m2 of showroom and 250 m2 of warehouse space. Located on a site of 1,011 m2 the building is set back from the road with off- street parking to the front. At the time of sale the property was returning $55,000 pa with the lease having approximately 4 months to run.

166 H Lansford Crescent – Glenburn Panelbeaters
Date: December 2014    Price: $185,000    Analysis: $1,850/m2    Yield: 5.64%
A small size format 1980s industrial unit of 100 m2 contained within a development of 11. Situation is on a corner site at Lansford Crescents eastern most juncture with Wolverton Street. The unit provides a small area of offices and amenities to the frontage together with medium stud warehousing/workshop. At the time of sale the property was returning $10,434 pa with approximately 10 months of the lease term remaining.

269 Great South Road -
Date: November 2014    Price: $515,000    Analysis: $805/m2    Yield: 0.00%
A two level light industrial building of 640 m2 constructed in the 1960s and converted into several mixed tenancy spaces. Located on a large rear cross-lease site with an undivided half share in 3,368 m2 A mortgagee sale.

9 B Mahunga Drive – MIT & Other
Date: October 2014    Price: $3,000,000    Analysis: $828/m2    Yield: 8.59%
An industrial property comprising 3288 m2 of warehouse and 337 m2 of office space. Located on a rear site of 5853 m2 with good yard/carparking space. At the time of sale the property was returning $257,770 pa with approximately 2.9 years of the lease term to run.

2 E Bishop Browne Pl – Vacant
Date: October 2014    Price: $540,000    Analysis: $3,892/m2    Yield: 0.00%
A modern two level strata commercial unit of 138.75 m2. Comprises 2 separate self contained spaces with ground floor showroom/retail of 87.61 m2 and a first floor office suite of 50.96 m2. Located within a multi-unit development, Bishopsgate Business Centre, on the south-western corner of Te Irirangi Drive and Bishop Dunn Place. Sold with vacant possession.

35 Station Road – Ramset
Date: December 2014    Price: $1,425,000    Analysis: $2,586/m2    Yield: 6.22% A 551 m2 two level 1980sl commercial building on a 811m2 site. The property comprises showroom, offices and warehouse space together with carparking to the front yard.. It has been occupied by Ramset for 20 years, current rent is $88,576 expiring in July 2016.

124 Symonds Street – Vacant
Date: November 2014    Price: $1,275,000    Analysis: $2,742/m2    Yield: 0.00%
A 3 level 1970s office building of approximately 465 m2 with city and harbour views. Situated on a site of 155 m2 on the corner of Symonds Street and the off ramp of SH1 on the fringe of the CBD. Sold with vacant possession.

4 Winchester Street – Vacant
Date: December 2014    Price: $875,000    Analysis: $4,487/m2    Yield: 0.00%
A 1960s industrial property of approximately 195 m2 comprising warehouse space with polished, sealed concrete floors, white painted interior and good natural light. On a recently subdivided site of 302 m2 the property shares a common fire-rated wall on part of the western boundary with an industrial property at 20 Newton Road. Sold with vacant possession.

155 Queen Street& B/C -
Date: October 2014    Price: $1,530,000    Analysis: $2,137/m2    Yield: 0.00%
The property comprises the entire Level 15 held in three strata titles within the high rise commercial building of 155 Queen Street which is situated within the Central Auckland Business District. Includes 3 carparks.

1875 Great North Road – ex Bayleys
Date: December 2014    Price: $1,480,000    Analysis: $2,473/m2    Yield: 5.83% A 1950s commercial building of 598.5 m2 located on the corner of Great North Road and Rosebank Road within the Avondale retail district. Existing fitout as offices together with basement storage. Previously occupied by the National bank and more recently a real estate and property management office. The tenant no longer occupies the building however the lease runs until September 2015 returning $86,300 p

166 E Lansford Crescent & F – Glenburn Panelbeaters
Date: December 2014    Price: $370,000    Analysis: $1,850/m2    Yield: 5.64% Two adjoining small size format 1980s industrial unit of 100 m2 each contained within a development of 11. The units have had the common wall between removed and are utilised as one space. The long established tenant also leases 2 other units in the block. At the time of sale the property was returning a combined income of $20,868 pa with approximately 7 months of the lease term remaining.

166 D Lansford Crescent – Glenburn Panelbeaters
Date: December 2014    Price: $185,000    Analysis: $1,850/m2    Yield: 5.64% A small size format 1980s industrial unit of 100 m2 contained within a development of 11. The unit provides a small area of offices and amenities to the frontage together with medium stud warehousing/workshop. Situation is on a corner site at Lansford Crescents eastern most juncture with Wolverton Street. The long established tenant also leases 3 other units in the block At the time of sale the property was returning $10,434 pa with approximately 7months of the lease  term remaining.

101 Great South Road – Luxotica & Others
Date: December 2014    Price: $2,200,000    Analysis: $2,876/m2    Yield: 7.77%
A 2 level stand alone 1980s office building together with approximately 20 carparks. The site of 1027 m2 falls away from the road providing ground and basement level office space. At the time of sale the property was returning $171,000 pa with a weighted average lease term to run of approximately 6 months.

543 Rosebank Road
December 2014    Price: $1,100,000    Land Area: 1,588 m2  Analysis: $693/m2
A redevelopment site of 1,588 m2 zoned Light Industry under the Proposed Auckland Unitary Plan. Semi triangular in shape the site the site has a narrow frontage of 7.75 metres with a rear boundary of 40.13 metres. A 1980s industrial building of 316 m2 is located on the site with the existing tenant on a monthly lease returning $55,000 pa.