Nearly $1m for half a house
The sale of a modest inner city house is proving Auckland's property market still has the power to surprise.
The Ponsonby property at 19 Lincoln St is an 81 square metre, 100-year-old duplex, with two bedrooms, one bathroom and no off-street car parking.
It has brought in $945,000 at auction - well surpassing its CV of $570,000.
Barfoot & Thompson's Chris Batchelor is the agent behind the sale.
"It is a pretty big price and I think everyone was surprised, but that is what happens when you get people in the auction room.
"The value was there. CV doesn't factor in emotion," he said.
Batchelor said. location, the fact the house was north-facing, and internal renovations helped drive up the price.
All that is known about the buyer is that they are young and from out of Auckland.
Batchelor said the house got a lot of interest and a pre-auction offer of $800,000 four days after going on the market.
It sold within a week.
According to QV's latest figures those wanting to buy a house in central Auckland will have to shell out an average of $684,799.
QV's northern region operations manager Kerry Stewart said while it doesn't look like prices will be easing any time soon, it is unusual to see a property go for so much more than its CV.
"It's certainly very high. It is always difficult to compare ratings value with sale price though, things change," he said.
Selling at auction could have contributed.
According to the Real Estate Institute of New Zealand it is becoming the preferred way to sell with more than two thirds of Auckland properties changing hands in May using the method.
"Auctions do tend to bring out that competitive nature of potential purchasers and drive the price up," Stewart said.
- © Fairfax NZ News
Should we raise the retirement age?