3 same-size units get quite different sale prices

[muppet]

3 same-size units get quite different sale prices

Published 8 October 2010
Same size, an $80/week range in rents and a $44,000 range in price – 3 apartments around the Auckland cbd, all in theory the same if you don’t look too closely, went to auction at Ray White City Apartments yesterday and attracted some vigorous bidding before selling under the hammer.

Each one measuring 37m² & freehold, they were sold in a price range of $3500-4700/m². What makes the difference? – location, the street they’re on, the position in the building, the rental return, maybe the furniture, parking (none for any of these 3 units), building age & quality, certainly the economic climate & availability of funds. Auction results:

Uptown

Volt, 430 Queen St, unit 813, 37m², 2 bedrooms, fully furnished, rental assessment $360/week, sold for $174,000 (Matt Shirley & Judi Yurak)

Victoria Quarter

Zest, 72 Nelson St, unit 230, 37m², 2 bedrooms, fully furnished, rental assessment $280/week, sold for $129,500 (Matt Shirley & Judi Yurak)

Zest, 72 Nelson St, unit 1427, 37m², 2 bedrooms, part-furnished, rent $300/week fixed until end of January, sold for $147,500 (Matt Shirley & Judi Yurak)

http://www.propbd.co.nz/afa.asp?idWebPage=8338&idBobDeyProperty_Articles=15031&SID=628398278

[muppet]

B&T residential price average up 2.5% from August

Published 5 October 2010
Barfoot & Thompson’s average residential sale price in September was 2.5% higher than in August and 1.5% higher than last September.

Managing director Peter Thompson said today the September average of $523,861 was in line with the average for 2009: “It points to prices being stable and is a pleasing return after the decline seen in August.”

But he said sales were still only ticking over, not exceeding 700/month for 4 months. September’s 689 sales were up from 637 in August, down from 917 last September.

The average weekly rental the agency achieved in September was $407, up $1 on August, up $23 on last September. The company let 717 properties in September, up 2.3% on a year ago.

http://www.propbd.co.nz/afa.asp?idWebPage=8338&idBobDeyProperty_Articles=15026&SID=350639103

[muppet]

Update: Colliers sells 2 under hammer, Pukekohe bulk retail unit soon after, bidding on Otahuhu Workingmen�s Club falls short

Updated 7 October 2010
Published 1 October 2010
One of 2 Pukekohe bulk retail units offered at a Colliers International auction last week was sold shortly after the auction on an 8.17% yield (see details below).

Bidding fell short on 2 bulk retail units in a van den Brink family development across the road from the Pukekohe Raceway. The yield was at 8.25% when bidding on the first of the 2 units stopped, and was well above 10% on the second.

The Otahuhu Workingmen’s Club, with an aging & falling membership in a changing suburb, has recognised its time is past. But after only a handful of bids, the offer for that property also fell short of expectations.

A light industrial unit on Triton Drive, completed in 2005 in the Mairangi Bay industrial precinct on the North Shore, was sold at a yield just under 8%. Auction results:

Isthmus east

Otahuhu, Otahuhu Workingmen’s Club, 101 & 48-50 Atkinson Avenue, 1608m² corner site in 2 titles, 2481m² of floorspace on 2 levels, plus a separate 2529m² of parking on 2 titles, zoned for mixed use and offered with vacant possession, consented gaming machine licence, passed in at $1.3 million (John Davies & Todd Kuzmich)

Otahuhu, 2 Piki Thompson Way, 976m² site zoned business 1, returning $43,000/year, once the home of former prime minister the late David Lange, more recently occupied by Money Shop, sold prior for $465,000 at 9% yield (John Davies & Bruce Jiao)

Royal Oak, 725 Mt Albert Rd, 569m² site with holding income of $99,112/year from 2 tenancies to 2012, passed in at $850,000 (Jonathan Lynch & Marcus Brown)

North-east

Mairangi Bay, 10B Triton Avenue, net lettable area 401m², rent $55,000/year on new 4-year lease from January 2010, sold for $688,000 at 7.99% yield (Matt Prentice & Mike Ryan)

South

Pukekohe, 239 Manukau Rd, 5040m² of yard & building in bulk retail development by Race Park Retail Ltd (a van den Brink company), occupied by RD1, rent $287,000 + gst/year on 8-year lease with 3x3 rights of renewal, sold for $3.51 million to the party it had been passed into, reflecting a yield of 8.17% on a lease with just under 5 years to run (Charlie Oscroft & Peter Kermode)

http://www.propbd.co.nz/afa.asp?idWebPage=8338&idBobDeyProperty_Articles=14994&SID=473227912

[AMR]

3 same-size units get quite different sale prices

Published 8 October 2010
Same size, an $80/week range in rents and a $44,000 range in price – 3 apartments around the Auckland cbd, all in theory the same if you don’t look too closely, went to auction at Ray White City Apartments yesterday and attracted some vigorous bidding before selling under the hammer.

Each one measuring 37m² & freehold, they were sold in a price range of $3500-4700/m². What makes the difference? – location, the street they’re on, the position in the building, the rental return, maybe the furniture, parking (none for any of these 3 units), building age & quality, certainly the economic climate & availability of funds. Auction results:

Uptown

Volt, 430 Queen St, unit 813, 37m², 2 bedrooms, fully furnished, rental assessment $360/week, sold for $174,000 (Matt Shirley & Judi Yurak)

Victoria Quarter

Zest, 72 Nelson St, unit 230, 37m², 2 bedrooms, fully furnished, rental assessment $280/week, sold for $129,500 (Matt Shirley & Judi Yurak)

Zest, 72 Nelson St, unit 1427, 37m², 2 bedrooms, part-furnished, rent $300/week fixed until end of January, sold for $147,500 (Matt Shirley & Judi Yurak)

http://www.propbd.co.nz/afa.asp?idWe...&SID=628398278

That Volt went for a fair bit! Some of the 48m2 volts go for that price.

[eri]

now a few years after the ak apart market was saturated things are settling down a bit

imho

volt seems to be generating a reputation for being a well run, easily rented, sound block with a bit of character in it's design. it's location on queen st. and being very near to the tech. and university is ideal. but note that they are still selling well below CV, unlike statesman etc.

zest isn't doing so well. the water rort still seems to be there, it's a long way from the education centres, and is as bland as it is possible to be. as noted previously the smallest 2bd volt apart is about as big as the average 2bd zest. what zest does have is a good view of the harbour...............but only from the top floors, so that's why the 14th fl sold much higher than the 2nd fl. i think it's east-west aspect may turn the upper LR/Kitchens into sweat baths after a full day of sun too...

[ENP]

When you work out the yields, they are all roughly the same. Hence the differences in price.

[CJ]

When you work out the yields, they are all roughly the same. Hence the differences in price.

But why the different rents for near identical apartments. As Eri says, it is probably due to location, views, costs. But if it is just because it is underrented, then that is an easy way to add value.

[NovInvestor]

rents depend on the tenant who is preparing to pay for it.

these apartments may have the same size, but the location and view, and direction the building is facing, and where the windows face out to make the most difference.

i call it the Emotional Factor.

don't under estimate the emotional component in the tenants head when the tenant chooses the 'ideal' property to rent.

it may be a business (and numbers) to us as investors, but to a tenant, it is no different than us choosing which home to buy and live in.

[wotstheguts]

That Volt went for a fair bit! Some of the 48m2 volts go for that price.

Hi AMR, which 48-sqm Volt units went for around the $174K mark?

[eri]

not many 48m2 units in volt, but i guess the xx03's apply, from my records

$159,000 - 203 $171,000 - 703