Header Ad Module



No announcement yet.

Good times coming back to Chancery?

  • Filter
  • Time
  • Show
Clear All
new posts

  • Good times coming back to Chancery?

    Location: 109A The Chancery
    Property use: Retail
    Floor area: 51m2
    Price: Asking price $800,000
    Property ID#: BKU607
    Strategically located in the heart of CBD, Chancery is described as one of the best shopping heaven in Auckland. This place is mix of high end fashion boutiques, beauty, jewellery, café and restaurants. Surrounded by prime corporate offices buildings like Vero Centre, WHK Gosling Chapman, Forsyth Barr, Auckland Law Society and countless professional, law and accounting firms!

    This opportunity is sure to be snapped up very quickly, call us for inspection today!
    Source: http://www.trademe.co.nz/Browse/List...x?id=330169151

    The price is rising fast -- at least the asking price. This unit is A9 in Chancery Square with Joinus as the owner and tenant who planned to leave in October (may already be gone now), so BT marketed the property last month for lease ($52,120) and sale (640K).

    Now NZI/Harcourts is marketing the same property with an asking price of 800K, which is 25% over the price set only one month ago. Someone must be expecting the boom to come back soon, despite the many shops in Chancery still being vacant or on short term lease.

  • #2
    Location: A109 The Chancery
    Property use: Retail
    Floor area: 51m2
    Price: Asking price $48,000 per annum excl. GST
    Source: http://www.trademe.co.nz/Browse/List...x?id=330169679

    This shows the property is vacant. Now, let's see. If you can secure a tenant at 48K per year, that will give you a cap rate of 6%. Buying a vacant property at 6%?

    There's more -- whether the leaky building has been fixed or not is still not clear.


    • #3
      How did you get the cap rate of 6%?

      And man those outgoings! $15k p.a. for a 51 sqm shop...
      Squadly dinky do!


      • #4
        Actually, the cap rate should be -- zero. There's no income and you don't know how long it will take to get your next tenant. The several empty Chancery shops along Courthouse Lane are good examples.

        Anyway, the asking rent has dropped from 52,120 to 48,000 in one month, but the asking price has increased instead from 640K to 800K.

        An agent would probably tell you the cap rate is 48,000/800,000 or 6%.

        Yes, 294/sqm is very high.


        • #5
          "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx