The sale of these two state houses for 50% more then their CV’s is evidence that the Auckland market is approaching a boom phase.
This is not healthy in my opinion. Yes, we all want property prices to rise, but steady as she goes is best, and not by explosive increases.
These two properties may have been in an up and coming suburb, but the houses are dumps, and the “value” is in the land. A new bench mark has therefore been reached for land prices in Sandringham and surrounding suburbs which is not a good thing because it invites more meddling by the authorities to dampen house prices – with all the distortions that will bring.
As these two properties were State Houses, I will be interested to see if the Greens and their supporters will be asking that Capital Gains Tax should be paid by the State on the “super profits” made at the expense of the public.
I am not holding my breath on that one.
State house duo fetch $1.9m
By Alanah Eriksen
One of the properties, at 94 Haverstock Road in Sandringham. Photo / Supplied
Two neighbouring state homes in need of “extreme makeovers” have reached $1.9 million at auction.
Numbers 94 and 96 Haverstock Rd are the first of 19 properties in the street to be sold by Housing New Zealand.
The corporation says it’s too costly to develop the rundown homes in the flourishing suburb of Sandringham.
House prices and the tone of the street are expected to be boosted following the two sales and the upcoming sales of the remaining 17.
The other homes, described as an eyesore because of boarded-up windows and graffiti-covered walls, are to be demolished and the land sold separately in March to make way for new, private developments.
A packed Bayleys auction room included several bidders yesterday morning, with 94 Haverstock selling for $1.05 million – $350,000 or 50 per cent above its valuation of $700,000.
Both homes sold to Chinese buyers planning to renovate and live in them.
The listing for number 94, a four-bedroom 1950s weatherboard house sitting on a 938sq m section, said the property was “screaming out to be saved by you”.