“Shoe Box” Apartments Still Popular

The cheap apartment market has got a lot of bad press over the years and deservedly so. When they first became the “rage” they were hopelessly overpriced. Now, because of over supply, shoddy building in some, and the horrors of the BueChip fiasco , they are hopelessly under priced. For those of you brave enough to give it a go, buying a bunch of cheap, but well made shoe box apartments, may not be such a bad thing. It appears others think along the same lines if these recent sales are anything to go by.  They do look cheap don’t they? ( but I still have my doubts over leasehold)

Published 14 April 2011
Bob Dey Report

City Sales sold 7 city apartments under the hammer yesterday out of 7 offered at auction, including 3 in The Quadrant and 2 leasehold units.

One of the leasehold units is at Quay Park, where Ngati Whatua’s ground lease is due to start being charged from 1 August after being free in the early years of the precinct’s development.

The other leasehold unit is at the Sebel on the Viaduct, where net income from the hotel through to January didn’t quite match outgoings on rates, the body corp levy & ground rent. However, rents around the central city have been rising as the full-house signs go
Auction results:

Learning Quarter

The Quadrant, 10 Waterloo Quadrant, unit 1412, 32m² west-facing one-bedroom unit, deck, rates & body corp levy $5634/year, in hotel pool, sold for $166,000 (May Ma & Mark Li)

The Quadrant, 10 Waterloo Quadrant, unit 907, 32m² west-facing one-bedroom unit, deck, rates & body corp levy $5344/year, in hotel pool, sold for $155,000 (Maryanne Wong)

The Quadrant, 10 Waterloo Quadrant, unit 1816, 22m² studio, deck, rates & body corp levy $4581/year, in hotel pool, sold for $128,000 (May Ma & Mark Li)

Quay Park

The Landings, 10 Ronayne St, unit 518, leasehold, 114m² 3-bedroom unit, 2 bathrooms, deck, tandem parking, rental assessment $600/week; rates & body corp levy $5237/year, the first charge under the ground lease will be made from 1 August, which may be in the range of $8-14,000/year; sold for $265,000 (Hilary Seagrave & Tony Kelly)

Victoria Quarter

Imperial Gardens, 135 Hobson St, unit 415, 71m², 3 bedrooms, 2 bathrooms, deck, parking space, rates & body corp levy $6284/year, rent not stated, sold for $300,000 (Wendy Feng)

Kingsbridge, 72 Wellesley St West, unit 1P, 67m² one-bedroom unit, parking space, across road from St Matthews-in-the-City and the back end of the SkyCity casino, rates & body corp levy $4752/year, rental assessment $360/week, sold for $230,500 (Wendy Feng)

Sebel, 85 Customs St West, unit 415, leasehold, 50m² one bedroom with study, 2 decks, parking space, rates & body corp levy $15,316/year (plus gst on city rates) all paid by hotel, net income $13,716 plus gst/year to January 2011, sold for $196,000 (Georgia Featherstone)

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