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Latest Bayleys commercial property auction
October 22, 2014
This shop in New Lynn sold for $393,000 providing its new owners with a net yield of just 3.6%.
It seems investors can’t get enough of small retail units and that was the case at Bayleys latest auction of Auckland commercial units, when a small shop in the west Auckland suburb of New Lynn was sold at a net yield of just 3.6%, while a block of three shops at Three Lamps in Ponsonby will be returning their new owner a yield of 5.3%.
At the other other end of the scale a canny couple got themselves a steal when they picked up an industrial unit at Silverdale that will be providing them with a net yield of almost 10%.
Several vacant commercial properties also sold under the hammer at the same auction and there was strong competition for a Howick motel offered as a freehold going concern.
Overall there were 17 properties offered for sale by auction on the day, with most of them being of a size that would put them within reach of private investors and family trusts. Seven were sold under the hammer, one was sold conditionally and nine were passed in for sale by negotiation.
The full results are below:
293-297 Ponsonby Rd. There was strong competition from several keen bidders for this block of three shops in Ponsonby’s main shopping strip at Three Lamps, which were providing net income of $150,253 a year. According to the auctioneer the shops had been in the same family’s ownership for more than 100 years. They sold under the hammer for $2.82 million, providing the new owners a net yield of 5.3%.
3140 Great North Rd, New Lynn. An 80sq m shop on a 150sq m site with rear parking, providing net rental income of $14,000 a year. The location next to a new Bunnings outlet currently under construction could have appealed to developers. It sold under the hammer for $393,000 providing a net yield of 3.6%.
Unit E, 84-90 Hillside Rd, Wairau Valley. A 510sqm industrial building with 312sq m of warehouse space, 108sq m of open mezzanine and 90sq m of upstairs office. Offered with vacant possession it sold under the hammer for $581,000.
49 Carr Rd, Mt Roskill. An 809sq m corner site with a 734sq m light industrial premises was offered with vacant possession from 1 February next year. Sold under the hammer for $1.21 million.
682 Pakuranga Rd, Howick. A 10 unit motel with pool and four bedroom manager’s home and office, on a 1677sq m site offered as a freehold going concern. Sold for $2.35 million.
1652-1654 State Highway 1, Wellsford. A 3884sq m site on two titles with 1187sq m of mixed use space providing net rental income of $101,000 a year. The auctioneer started proceedings for this unit with a vendor bid of $900,000 and when no further bids were received it was passed in for sale by negotiation.
322 Hingaia Rd, Karaka. A 1105sq m site divided between a 140sq m shop/takeaway providing rental income of $20,800 and a three bedroom house on a monthly tenancy rented at $400 a week. Sold under the hammer for $560,000.
Unit 7, 49 Sainsbury Rd, St Lukes. A modern commercial unit with 407sqm of office space, 247sq m of warehouse space and 14 car parks. It was providing net rental income of $140,000 indexed to CPI annually. There were multiple bidders for this property and in an unusual move for an auction it was sold conditionally, with the highest bid of $1.888m accepted subject to the approval of the vendor’s board. That price would provide a net yield of 7.4%.
639E Whangaparaoa Rd, Stanmore Bay. A 115sq m retail unit leased to a Subway outlet providing net rental income of $35,055. The only bid on this property ($480,000) was made by the auctioneer on behalf of the vendor and it was passed in for sale by negotiation.
30 Anvil Rd, Silverdale. A 772sq m food processing premises on a 1705sq m site, providing net rental income of $115,000. Sold under the hammer $1.18 million providing a net yield of 9.7%.
12 Cape Hill Rd, Pukekohe. The Cape Hill Industrial Park, a 3.29ha site with 7276sq m of floor space and six tenants returning $480,000 a year. There were no bids on the property and it was passed in for sale by negotiation.
8/50 Stonedon Drive, East Tamaki. A two level live/work unit with 103sq m warehouse downstairs and a 98sq m, two bedroom apartment upstairs in the newly completed Stonedon Terraces complex. Producing net rental income of $41,600. The highest bid for this property was $500,000 but it was passed in for sale by negotiation.
1-13 Railside Ave, Henderson. A 1404sq m site with a 207sq m shop at the front and another 54sq m of warehouse space at the back and 18 car parks. Net rental income $77,000. Passed in with no bids.
289 Onehunga Mall. A 528sq m retail premises with 18 secure car parks on the ground floor of the Atrium in Main apartment complex. Vacant. Passed in with no bids.
281A Onehunga Mall. A 128sq m ground level unit in the Atrium on Main complex, with six secure car parks. Vacant. Passed in with no bids.
Unit C, 33-35 Waipareira Ave, Henderson. A modern industrial unit with 200sq m of office/warehouse space. Vacant. The auctioneer opened the bidding with a $500,000 bid on behalf of the vendor but when there were no further bids it was passed in.
33-35 O’Shannessy St, Papakura. A modern, two level mixed use complex with two retail/office premises on the ground floor and four 2-bedroom apartments on the upper level. The commercial premises provided net rental income of $28,000 and the apartments were rented for $66,560 a year. Passed in with a highest bid of $800,000.
Source: interest .co
The competition is rapidly heating up
ANZ & Westpac have offered special 5.75% 2 year fixed mortgage rates which are new lower rates than before.
This will provide yet more fuel on the fire.
Maybe this is not the end of the boom, but only the beginning.
Where are all those who, not so long ago, said that interest rates would rise higher and higher and the property market would crash?
They’re in hiding, cursing the day they decided not to buy, while grinding their teeth at the opportunities forever lost.
Investor sells land worth over $40m
Tuesday Oct 21, 2014 AnneGibson
Accidental property investor just wanted land for his lawn business.
Alan Wallace is an accidental property investor, signing a deal due to settle next year to sell a 16ha East Tamaki site for more than $40 million after paying $630,000 for the real estate 21 years ago.
He and wife Dianne never dreamed they would get so much.
“Most people selling up get all excited. I didn’t buy it to make money. I bought it for my turf business,” said Alan Wallace, a keen cyclist and photographer who turned 70 in August.
I can’t see what’s so special about this price. This is a traditional villa oozing charm that many people love. Many of these older homes have been ruined by over modernising but this one sees to be more or less original. I think it was well worth the money.
Seeing double: Auckland do-up costs ‘crazy’ $1.4m
It’s a century old, needs a lot of love – and just sold for $1.45m.
This house at 27 Clarence Rd in Northcote Point, Auckland, had a capital value of $760,000 just three years ago – but fierce competition and a booming housing market in the country’s biggest city saw it sell for nearly double that.
As one unsuccessful bidder, journalist and television personality Carly Flynn, vented on Facebook, prices in Auckland have “just gone completely mad???!!”.
Harcourts Real Estate Takapuna manager Geraldine Meo said there had been more than 100 bids on the Clarence Rd property from eight bidders on Saturday. The eventual buyer was a local resident.
The high price for the house, which is located on an 800 square metre section, was not surprising, she said.
“It’s an original villa in a tightly-held area and it’s on a nice piece of land,” she said.
Price increases ‘frightening’
Sunday Oct 19, 2014
Auckland property values have risen by more than a third in the past three years.
Property author and commentator Olly Newland said the country had not seen these sorts of property value hikes since the 1970s.
“It is, I think, a permanent readjustment of prices and everybody’s going to have to get used to it,” he said.
“I think it will taper off over the next three years – I don’t think these percentages will be repeated – but even if it drops to a quarter of what it is now it’ll be a quarter of a much bigger number.”
Auckland’s property values have skyrocketed by more than a third in the past three years as the heated housing market continues to surge.
Figures from the council’s 2014 capital valuations, released today, are a double-edged sword for homeowners – your biggest asset has grown markedly, but the likelihood of rates increases is the sting in the tail.
The new average CVs in every suburb reveal the shifting Auckland landscape. The biggest rises are in outlying suburbs as buyers have been priced out of central city areas.
That has meant surges in the North Shore, where Forrest Hill has seen a 55 per cent average increase, and in the south, where Mangere Bridge values have leapt 53 per cent.
Read the rest here:
Chinese investment in NZ housing tipped to rise
Friday Oct 17, 2014
NZ house market will see more money once rules eased: economist
A BNZ-REINZ survey of real estate agents last year found residential property sales to foreigners accounted for 8 to 9 per cent of total sales. Photo / Peter Meecham
China’s plans to ease the restrictions its citizens face when investing overseas will result in increased Chinese capital flowing into New Zealand’s property market and contribute to rising house prices, says an economist.
The world’s second-biggest economy still has a relatively closed financial system, with strict capital controls meaning the sprawling nation – which accounted for 10 per cent of global gross domestic product in 2011 – has a less than 3 per cent share of global holdings of assets and liabilities, according to a Bank of England report.
The People’s Bank of China, which wants to promote international use of the yuan currency, last week outlined a plan that will allow Chinese nationals to invest in overseas property and stocks through a Qualified Domestic Retail Investor Scheme.
Auckland’s $6 million grass patch
LAUREN PRIESTLEY AND MICHAEL FIELD
A spectacular block of empty land overlooking Auckland is on the market with experts reckoning it will get around $6 million.
The Mt Albert property comes with history – it was owned by the man who made millions transforming the Chinese gooseberry in to kiwifruit.
The two lots with a combined 3400 square metres could, under the unitary plan, be used for four or five multi-million dollar homes.
Auckland property commentator Olly Newland says the price will come down to how much anyone is willing to pay.
A former state house on a 700 square metre section up Mt Albert sold for more than $1 million this year, he says.
The price will also depend on how many units the buyer gets consent to build on the site, Newland says.
“The sky’s the limit really. What anyone’s going to pay is the question.
“For a smaller section with a boring state house to go for that you just don’t know.”
Up Summit Drive, atop Mt Albert, has long been the semi-secret preserve of the Turner family, famous for Turners and Growers auctions and, more recently Turner Auctions. The vacant land, known to the Turners as “The Paddock” and in the family hands for 75 years, is just one of half a dozen family properties scattered around the peak and Owairaka Reserve.
Read the whole article here:
Parking lots: the future of urban housing?
A 135-square foot, eco-friendly micro house that’s designed to fit into a single parking space: is this the future of urban housing?
Dubbed the SCADPad, the 16 X 8 foot dwelling designed for a single occupant fitted with a bed, kitchenette and bathroom, is the brainchild of students and faculty at the Savannah College of Art and Design (SCAD).
SCADpad evolved from a project to find a solution to the growing need for “suitable, sustainable and efficient” housing in large urban centers. But, why a parking garage of all places?
“Research showed that in the United States there is an abundance of parking garages – five parking spaces for every car on the road, so we decided to tackle that as a problem,” Paula Wallace, president at SCAD told CNBC on a recent visit to Singapore.
The adaptive reuse of old buildings is environmentally-friendly, Wallace added.
“While Parking garages are particularly unattractive, they are very strong – so tearing such a building down has environmental consequences potentially for 80 years. The greenest thing you can do is use existing buildings for a new purpose,” she said.
The target group for such housing is millennials looking to live on their own, in walking distance of the city-center. SCAD research found people in their 20s would sacrifice space for privacy and prefer not to spend time commuting in a car.
Houses getting less affordable
HIGH COST: Massey University's home affordability index is bad news for most.
Home ownership is slipping further out of reach for more first-time buyers, Massey University research shows.
The university's real estate analysis unit said in a quarterly report that the affordability of homes fell 11.4 per cent in the year to August, and it forecast further deterioration in the year ahead.
The survey measures the affordability of housing by comparing house prices and mortgage rates against the average wage.
The average weekly wage rose $28.06 over the year, the university found.
But that was not enough to offset an average $30,000 increase in median house prices and an increase in the average mortgage rate from 5.52 per cent to 5.86 per cent.
Read the full report here.
Note: These are for the whole, of NZ, not Auckland or Christchurch alone.
The provinces provide a dampening effect as is well known
REINZ Residential Market Reports – September
13 Oct 2014
- 5,911 dwellings sold in September 2014, up 7.8% on August and down 12.0% on September 2013
- National median price of $420,000, the same as August and up $20,000 (+5.0%) on September 2013
- Days to sell improved by three days to 35 days compared to August, and eased four days compared to September 2013
REINZ, the most up to date source of real estate data in New Zealand, announced today that there were 5,911 dwelling sales in the month of September, down 12.0% on September 2013 but up 7.8% compared to August. The national median price was $420,000 for the month of September, an increase of $20,000 compared to September 2013, and steady from August 2014.