Inner City Apartments – Mixed Results

The latest auction results held by the major auctioneers gave mixed results for inner city “shoe box ” apartment market. While some inner city apartments can be cash flow positive it seems that any capital growth may be a long way off at present no doubt from the public’s perception still coloured by events in the recent past.

Small inner city apartments were flogged at ridiculously high prices a few years back and we all know how that market crashed and burned. Now, despite the more realistic prices (not to mention the huge losses of capital by the original investors) it could be a long climb back.

Only those with very long time horizons and limitless patience and a extremely sharp eye for the right deal, should venture into this market despite some small glimmers of improvement.

On Trademe alone there are still 332 one bedroom apartments for sale, and 174 two bedroom apartments under $300,000. Over that figure the rent versus holding costs becomes uneconomical.

Venture into this market with extreme care.

Published 7 March 2012
Bob Dey Report

Westminster Court, 5 Parliament St, unit 1G, one bedroom, secure parking space, sold for $325,500

Quba, 2 Tapora St, unit 408, leasehold, one bedroom, secure parking, sold for $111,000

Quba, 2 Tapora St, unit 409, leasehold, one bedroom, secure parking, passed in at $98,000

Princes Wharf, 147 Quay St, unit 40, leasehold, withdrawn from auction

Grafton, Phoenix Gardens, 135 Grafton Rd, unit 1004, 114m², one bedroom, passed in at $500,000

Parnell, 11 Augustus Terrace, unit 1H, 2 bedrooms, 2 bathrooms, passed in at $422,000

Parnell, 6 Heather St, units 4H6 & 4H7, studios in Quest Hotel management pool, both withdrawn from auction

Beaumont Quarter, 22 Fisher Point Drive, unit 307, fully furnished one bedroom, balcony, passed in at $275,000

Eden Terrace, 19 Fleet St, unit A3, 3 bedrooms, patio, sold for $200,000

Grey Lynn, The Aston, 332 Great North Rd, unit 6, 2-storey apartment, 2 ensuite bathrooms, balcony, passed in at $475,000

Grafton, 2 St Martins Lane, unit 4C, 2 bedrooms, no bid

Grafton, 11 Whitaker Place, unit 2, art deco apartment, sold for $680,000

Metro City, 82 Wakefield St, unit 12C, studio, balcony, parking space, passed in at $170,000

Westminster Court, Parliament St, unit 5C, sold for $620,000

Federal, 207 Federal St, unit 1305, 2 bedrooms, passed in at $251,000

Metropolis, 1 Courthouse Lane, unit 2206, one bedroom, passed in at $250,000

142 Vincent St, unit 3B, 134m², 3 bedrooms, passed in at $401,000

Bianco off Queen, 2 White St, unit 14G, furnished 2-bedroom penthouse, parking space, withdrawn from auction.

Volt, 430 Queen St, unit 723, 2 bedrooms, sold prior

Victoria Quarter

H47, 47 Hobson St, unit 804, 2 bedrooms, private storage, parking space, sold for $485,000

The Quay, 148 Quay St, unit 3D, 173m², 3 bedrooms, 2 bathrooms, passed in at $585,000

Cintra, 3 Whitaker Place, unit 8D, 36m² furnished studio, rates & body corp levy $4320/year, out of hotel pool & vacant, rental assessment $360-390/week, passed in at $150,000

Cintra, 3 Whitaker Place, unit 7D, a similar unit, sold prior

Shortland Flats, 93 Shortland St, unit 18, 85m², unfurnished 2 bedrooms, purchase is of company share title – 1500 shares in Shortland Flats Ltd, shareholder levy $591/month ($7092/year),


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