Archive | Tamaki

Auction results, and a market assessment

Amid the noise over a decline in residential sales, it’s important to establish where that’s happening and in what types of market.

In Auckland, it was not at all surprising that a steep rise in prices should be followed by a decline, while Reserve Bank measures tightening borrowing have forced a further decline through the inability to borrow, and the absence of Chinese borrowers this year – compared to auctionrooms last year that were filled with Chinese buyers who appeared to have no limits – has taken further steam out.

The auction results presented below are from Barfoot & Thompson’s cbd apartments auction yesterday – 2 units, one sold – and from residential auctions on Tuesday & Wednesday.

Of the total 13 properties listed below, 8 sold, but the selection I’ve focused on is presented for the geographical mix as much as for the housing type.

Now that Auckland Council’s unitary plan is almost entirely in place, the real estate world has begun presenting more properties for their redevelopment potential, and many of those with such potential at lower prices are in isthmus fringe areas such as Point England & Glen Innes to the east, Mt Roskill & Mt Albert to the west. Unlike the regional fringes where new subdivisions are being developed – on the Hibiscus Coast to the north, across the top of the harbour to the west, and in a number of districts through old Papakura & Franklin to the south – these ones are close to the city centre, within 10km compared to beyond 25km or 40km.

On the isthmus, a house that was once in a bad neighbourhood can now command a price tag above $1 million, and all it’s done is age. Bad neighbourhoods could be defined as having a high state housing ratio, low-decile incomes, large families squeezed into small homes, poorer construction materials, and a general lack of foliage on sections and in streetscapes.

Those new price tags will force the old families out, and little is being created for them to move to. Those price rises in the bad neighbourhoods will also help lift already-soaring prices in the good neighbourhoods – the leafy areas of the eastern suburbs, for example.

Much of the entry-level housing is in cross-leased houses or mostly old brick-&-tile units. The prices for those can be as high as a modern product such as a 3-year-old GJ Gardner home (one in Mt Albert is listed below).

CBD

Learning Quarter:

Forte, 37 Symonds St, unit 505:
Features: 2-bedroom apartment, 2 bathrooms, deck
Outgoings: rates $1253/year including gst; body corp levy $3634/year
Outcome: sold for $540,000
Agents: Justin Choi & Zoran Farac

Longview, 6 Whitaker Place, unit 4D:
Features: 55m², one-bedroom apartment, deck
Outgoings: rates $1278/year including gst; body corp levy $3996/year
Outcome: no bid
Agents: Justin Choi & Stephen Shin

Isthmus east

Ellerslie

50 Amy St, unit 9:
Features: 3-storey townhouse, 3 bedrooms, carport
Outcome: sold for $785,000
Agent: Karin de Leeuw

Epsom

10 Orakau Avenue, unit 2:
Features: 2-bedroom townhouse, internal-access garage
Outcome: sold for $1.32 million
Agents: John Zhang & Louissa Bao

Glen Innes

52 Taniwha St:
Features: 837m² section, 3 bedrooms, study, garage, 4 offstreet parking spaces – in redeveloping Wai O Taiki Bay area bordering Glendowie, zoned mixed housing suburban
Outcome: sold for $1.09 million
Agents: Paul Neshausen & Sam Bowen

Mt Wellington

13A Wilkie Place:
Features: cross-lease, half share in 935m², 5-bedroom house – 3 bedrooms upstairs, separate & consented 2-bedroom flat downstairs with own entrance, carport, 2 offstreet parking spaces
Outcome: sold for $920,000
Agents: Jane Wang & Luke Shi

Stonefields

10 Robert Sale Rise:
Features: 354m² section, 235m² townhouse, 5 bedrooms, 3 bathrooms, 2 family rooms & separate lounge, double garage
Outcome: sold for $1.6 million
Agents: Frances Li & Ian Thornhill

Isthmus west

Mt Albert

60D Taylors Rd:
Features: 291m² section, 4-bedroom house, 3 bathrooms, family room, separate lounge, double internal–access garage, built 3 years ago by GJ Gardner
Outcome: sold for $1.36 million
Agents: Paul Donovan & Sharon Walls

Tremont Apartments, 4 Wagener Place, unit 409:
Features: top-floor apartment, 2 bedrooms, secure parking space
Outcome: passed in
Agents: George Fong & Laura Mc Auley

Mt Eden

706 Mt Eden Rd & 2A Watling St:
Features: 2 houses on 809m² corner section, each with own half-share cross-lease – 80m² 2-bedroom house on Mt Eden Rd, 140m² 3-bedroom house, double garage on Watling St
Income assessment: current rental expectation $1000-plus/week
Outcome: passed in when both offered together, no bid on Watling alone
Agents: Kelly Zhang & Hattie Liu

Mt Roskill

98 Melrose Rd, unit 3:
Features: 2-bedroom unit, carport
Outcome: no bid
Agents: Richard Han

North-west

Henderson

16 Matuhi Rise:
Features: 3-bedroom duplex, garage & workshop, carport, in-ground pool
Outcome: passed in, back on market at $649,000
Agents: Repeka Lelaulu & John Elgar

Te Atatu Peninsula

8 Celsmere Lane:
Features: renovated 2-bedroom house on 528m² section
Outcome: sold for $1.12 million
Agents: Angel Li & Louis Lai

Attribution: City apartments auction, auction documents.

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Pt England reserve law passed, but still rankles with mayor & board chair

The Point England Development Enabling Bill became law on Wednesday after a 7-month jaunt through the parliamentary process, enabling the Government to complete a Treaty of Waitangi settlement with Ngati Paoa.

The bill was introduced to Parliament on 7 December, passed its first reading 6 days later, its second reading on 23 May and committee stage on 21 June. It returned for its third reading on Tuesday and was given royal assent on Wednesday.

Auckland mayor Phil Goff and Maungakiekie-Tamaki Local Board chair Josephine Bartley said they accepted Parliament had a sovereign right to dispose of the land and they didn’t oppose the treaty settlement, but they remained concerned about the use of special legislation to lift reserve status outside normal statutory processes.

The new law allows for largescale housing development on 11.7ha of the reserve, enabling Ngati Paoa to build 300 houses on the reserve land as part of its treaty settlement.

Mr Goff said: “While the council is supportive of action to accelerate house building in Auckland, this bill raises a number of issues. This legislation prescribes to Auckland Council what it must do with land vested in & administered by the council under the Reserves Act. This prescription circumvents the statutory powers of a local authority responsible for public reserve land under the act.

“That the minister [Nick Smith, former housing minister and now Minister of Building & Construction] intends to micro-manage Auckland’s future rather than give residents the opportunity to have their say sets a worrying precedent. Going forward, the minister needs to promise Auckland that he will consult the council & Aucklanders on matters that affect their future.

“Auckland Council will now engage with the Government to ensure the loss of reserve land is properly managed and that decisions are made by locally elected representatives with public consultation.”

Ms Bartley said: “Our community has been denied the right to shape its own future. There is nothing more that residents can do now. Sadly this bill may further endanger wildlife and reduce green space in Maungakiekie-Tamaki & Auckland.”

Attribution: Parliament, council releases.

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Last-ditch attempt to derail Pt England bill questions super-city rationale

As the Point England Development Enabling Bill heads to its third reading in Parliament tomorrow – and therefore enactment – Maungakiekie-Tamaki Local Board chair Josephine Bartley posed a last-minute question about the rationale for governance changes made in 2010.

It’s not likely to change the course of the legislation, which will turn 11.7ha of the 48ha Point England Reserve over to housing, 2ha for a marae, as part of a Treaty of Waitangi settlement with Ngati Paoa.

But, in an era of carefully ensuring all those who ought to be consulted are consulted before decisions are made, Ms Bartley has asked why Building, Construction & former Housing Minister Nick Smith has usurped powers the Government gave local boards when they were established as part of the super-city governance structure.

She wrote to Dr Smith on Friday: “With the change in Local Government in Auckland in 2010, the Maungakiekie-Tamaki Local Board is responsible for local parks & reserves in our area.

“We aim to make decisions & plans for our parks & reserves based on community engagement. The minister, Dr Nick Smith, in his supplementary order paper [for the bill] circumvents this by stating that no grazing & farming will take place on Point England Reserve, and that Auckland Council must provide sportsfields on the headland where the dotterels & other shore birds are.

“As a local board, we opposed the Point England Development Enabling Bill because of the lack of consultation by the Government with our community and the dangerous precedent it sets of circumventing legislation that protects reserves.

”Again we are being stood on by Government and are being told what to do in our local reserve. If this is the case, then what was the point of the Auckland super-city structure put in place by Government to empower local decision-making?

“I have asked the minister for a meeting to remind him of the issues with this bill and his supplementary order paper on behalf of our local board & Tamaki community.”

Earlier stories:
26 May 2017: Pt England housing development bill passes second reading
19 December 2016: Bill to enable housing on Pt England Reserve passes first reading
7 December 2016: Ngati Paoa to build 300 homes on Pt England Reserve, talks continue on reserve upgrade

Attribution: Board release.

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Pt England housing development bill passes second reading

The Point England Development Enabling Bill, to turn 11.7ha of the 48ha Point England Reserve over to housing and to advance Ngati Paoa’s historical Waitangi Treaty settlement, passed its second reading in Parliament on Tuesday by 62 votes to 43.

Building & Construction Minister Nick Smith said having 18ha on the Tamaki River fenced off for cattle to graze for over 30 years was a poor use of Crown land just 10km from Auckland’s city centre: “We are going to use 12ha for new houses & 2ha for a marae, as part of a treaty settlement with Ngati Paoa. The remaining 4ha will be added to the 32ha of public reserve space.”

Dr Smith said the legislation would guarantee an increase in the accessible public space, retaining at least the same area of playing fields and committing to spending all of the Crown’s proceeds from the housing development in enhancing the local recreational facilities & environment.

Earlier stories:
19 December 2016: Bill to enable housing on Pt England Reserve passes first reading
7 December 2016: Ngati Paoa to build 300 homes on Pt England Reserve, talks continue on reserve upgrade

Attribution: Ministerial release.

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Auction raises more questions than bidders’ hands

Barfoot & Thompson’s apartments auction today raised more questions than bidders’ hands.

In a sparsely population city auctionroom, the 4 properties on offer were a cbd apartment, a cross-lease in Ellerslie, a unit in Papatoetoe where the unit title wasn’t yet issued, and a Glen Innes house on a section – like thousands around Auckland now – with subdivision potential following rezoning.

The Connaught apartment had a bidder, but the margin between them and the vendor was about $200,000, setting the vendor’s target about $20,000 above the price achieved for a larger unit last July, when the market was far more active.

Excluding parking & balcony, the vendor would have been seeking about $14,000/m² internal, compared to a bid set at about $9000/m².

New apartment developments’ prices have moved well above the $10,000/m² that was a benchmark 2 years ago – construction costs have helped push some about $15,000/m² – but for older buildings those sorts of returns raise a question of how much of the windfall arising from price rises over the last 4 years is acceptable or readily achievable.

The Ellerslie cross-lease sold under the hammer after the vendor edged down but the other 2 properties attracted no bid.

A unit where the unit paperwork hadn’t been completed presented a risk most wouldn’t take in a declining market.

And, while the far eastern Tamaki suburbs on the isthmus started to attract more interest late last year, the unitary plan has opened thousands of residential properties up for potential subdivision, negating windfall opportunities and (in theory at least) opening suburbia up to cheaper new housing.

The mindset of cheaper new suburban development hasn’t set in yet, and may need a council push in terms of infrastructure provision & pricing, but the number of sections starting to come to the market indicates enough willingness to sell, and for intensification to gradually get underway.

CBD

Learning Quarter

The Connaught, 14 Waterloo Quadrant, unit 5I:
Features: 50m² including balcony, one-bedroom apartment, parking space
Outgoings: body corp levy $4455/year
Income assessment: $400/week
Outcome: passed in at $450,000
Agent: Bernard Scahill

Isthmus east

Ellerslie

141 Celtic Crescent, unit 5:
Features: cross-lease, 1/5 share in 1760m², 3-bedrooms, 2 bathrooms, internal-access garage
Outcome: sold for $800,000
Agent: Paul Studman

Glen Innes

16 Epping St:
Features: 688m² site in terrace housing & apartments zone under the unitary plan, 4 bedrooms
Outcome: no bid
Agent: Jack Hu

South

Papatoetoe

81A Huia Rd, unit 2:
Features: 69m² 3-bedroom unit, 25m² sleepout with own bathroom, double carport – unit title yet to issue and body corporate levy yet to be determined
Outcome: no bid
Agent: Neno Radinovich

Attribution: Auction.

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Updated: 3 of 6 sell at Ray White auction

Published 13 April 2017, updated 15 April 2017:
The first 4 properties auctioned at Ray White City Apartments on Thursday – 3 apartments & a Glen Innes section – were passed in, but one was sold and another close to being sold through multi-offers by the end of the auction. The remaining 2 apartments were sold under the hammer.

The first unit on the auction list, a large 2-bedroom apartment on Wakefield St (pictured above), was sold shortly after the auction for $780,000.

The Glen Innes property is in a street of old houses which have steadily been demolished to make for new housing.

CBD

CBD east

The Beach, 85 Beach Rd, unit 510:
Features: 35m² furnished studio,
Outgoings: rates $1177/year including gst; body corp levy $2346/year
Income assessment: $385/week current
Outcome: passed in at $307,000
Agent: Dominic Worthington

Learning Quarter

The Crescent, 26 Eden Crescent, unit 1101:
Features: 38m², 2 bedrooms, 2 bathrooms, balcony
Outgoings: rates $1202/year including gst; body corp levy $4248/year
Income assessment: $480-500/week furnished
Outcome: sold for $416,500
Agents: May Ma & Mark Li

Silo, 23 Emily Place, unit 5J:
Features: 22m² studio, parking space
Outgoings: rates $999/year including gst for the unit, $152/year for the parking; body corp levy $3037/year for the unit, $829/year for the parking
Income assessment: $400/week current
Outcome: passed in at $355,000
Agents: Ryan Bridgman, Mitch Agnew, Damian Piggin & Daniel Horrobin

Updated: 18 Wakefield St, unit 8L:
Features: 92m², 2 bedrooms, parking space
Outgoings: rates $1861/year including gst; body corp levy $4649/year
Outcome: passed in at $750,000, sold after a multi-offer process for $780,000
Agents: Tanya Kwasza & Marie Graham

Uptown

Winsun Heights, 113 Vincent St, unit 6F:
Features: 30m², fully furnished 2 bedrooms, balcony
Outgoings: rates $1148/year including gst; body corp levy $4368/year
Income assessment: $400/week current
Outcome: sold for $282,000
Agent: Victor Liu

Isthmus east

Glen Innes

Kestrel Place, Glen Innes, empty lots seen from No 10.

10 Kestrel Place:
Features: 799m² section, 90m² house, 3 bedrooms, in a street where old houses are making way for new
Outgoings: rates $1982/year including gst
Outcome: passed in at $810,000
Agent: Tim Warmington

Attribution: Auction.

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Sales a rarity at final Barfoots auctions for year

A Bucklands Beach house on a cross-lease sold at Barfoot & Thompson’s city auction yesterday, but 2 others in Epsom & Mt Albert were passed in. Both city apartments offered this morning were also passed in, and at this afternoon’s final auction session for the year 2 houses were sold and the other 7 on the list were passed in.

CBD

Commerce & Gore

HarbourCity, 16 Gore St, unit 8C:
Features: one-bedroom apartment
Outgoings: body corp levy $1969/year, additional levy of $1984 for building defects claim; claim will be assigned to buyer
Outcome: passed in at $190,000
Agents: Stephen Shin & Rhys Chen

Victoria St

QV Building, 6 Victoria St East, unit 3J:
Features: 77m², 2-bedroom corner apartment, high stud
Outgoings: body corp levy $6328/year
Outcome: passed in at $500,000
Agents: Stephen Shin & Zoran Farac

Isthmus east

Epsom

14B Liverpool St:
Features: cross-lease, half share in 968m², 2 bedrooms, double carport
Outcome: passed in, back on the market at $928,000
Agent: Robert Thompson

Pt England

39 & 39A Waddell Avenue:
Features: 812m² in 2 titles, 2-bedroom house & 2-bedroom unit, each with a garage, in terraced housing & apartments zone under unitary plan
Outcome: withdrawn from auction, back on the market at $1.175 million
Agent: Fae Bryant

Isthmus west

Mt Albert

21 Ruarangi Rd, unit 14:
Features: cross-lease, 1/6 share in 1280m², 2-bedroom unit, carport, storage
Outcome: passed in, back on the market at $668,000
Agents: Christine & Mark Wooding

South

Bucklands Beach

33 Hattaway Avenue, unit 1:
Features: cross-lease, half share in 874m², 3 bedrooms
Outcome: sold for $910,000
Agent: Roger Franklin

Attribution: Auctions.

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Bill to enable housing on Pt England Reserve passes first reading

The bill to enable housing development on part of the Pt England Reserve beside the Tamaki Estuary passed its first reading last week and has been referred to the Local Government & Environment Select Committee for consideration.

Public submissions close on Tuesday 31 January and the committee is expected to report back to Parliament in April.

The Government unveiled a 300-home development by the Tamaki Redevelopment Co Ltd & Ngati Paoa on 11.7ha of the 45.4ha reserve on 6 December, and was met by a chorus of the mayor, local councillor & local board calling for the proceeds to be invested in new open spaces.

Dr Nick Smith – Building & Housing Minister when he announced the proposal, now Building & Construction Minister after yesterday’s Cabinet reshuffle – said 2ha would be used for a marae, and said 18ha had been used for grazing cows. Mayor Phil Goff said the reserve was vested in Auckland Council, with an underlying Crown title. The council also administer an adjacent 2.9ha council-owned beach reserve/

The development land adjoins housing owned by the Tamaki Redevelopment Co that is due for redevelopment as part of the regeneration of the Tamaki area.

Dr Smith said after the bill passed its first reading: “This plan is about replacing the cows with homes and enhancing the balance of the reserve with improved recreational & cultural facilities. This initiative will give more families a warm, dry, affordable home, improve amenities in the area and help to resolve Ngati Paoa’s treaty settlement.

“Ngati Paoa will have the right to develop this land for housing and will pay fair market value. A further 2ha is being provided for the development of a marae as part of the cultural redress of the treaty settlement.”

He said the aim was to achieve a minimum of 20% social houses & 20% affordable houses, but the details still had to be negotiated with Ngati Paoa.

Link:
Point England Development Enabling Bill

Earlier story:
7 December 2016: Ngati Paoa to build 300 homes on Pt England Reserve, talks continue on reserve upgrade

Attribution: Parliament, bill, ministerial & council releases.

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3 consortiums on Tamaki redevelopment shortlist

The Government-Auckland Council joint venture company Tamaki Regeneration Ltd has cut to a shortlist of 3 consortiums vying for its programme to redevelop 1000 state houses in the northern Tamaki area of Auckland’s eastern suburbs to produce 2500 new homes classified as social, affordable or for the private market.

Tamaki Regeneration is owned 41% by the council and 59% by the Government’s Tamaki Redevelopment Ltd. It sought expressions of interest for the first phase of this project in August and released the shortlisted parties on Friday:

  • Ngati Paoa-led consortium with support from local & international constructors & financier
  • The Tuhono Tamaki Consortium – Fletcher Residential Ltd, Fletcher Building Ltd, Ngati Whatua Orakei Whai Rawa Ltd, Programmed Facility Management NZ Ltd, Macquarie Capital (NZ) Ltd & Public Infrastructure Partners II LP
  • The Exemplar Communities Consortium – AV Jennings, Capella Capital, AMP Capital, Spotless, Universal Homes & Classic Builders.

Tamaki Regeneration chief executive John Holyoake said the company would issue a request for proposals to the shortlisted parties this month, with a closing date for responses of May 2017. The preferred respondent will be announced in September 2017 and construction is expected to get underway in late 2017.

Tamaki Regeneration took over the ownership & management of 2800 Housing NZ properties on 170ha in the Tamaki suburbs of Glen Innes, Panmure & Pt England on 1 April with the intention of transforming the properties into more than 7500 new quality homes over the next 15 years.

Attribution: Company release.

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Ngati Paoa to build 300 homes on Pt England Reserve, talks continue on reserve upgrade

The Government unveiled a 300-home development by the Tamaki Redevelopment Co Ltd & Ngati Paoa on 12ha of the Pt England Reserve yesterday, and the mayor, local councillor & local board promptly called for the proceeds to be invested in new open spaces.

Agreeing the size of the reserve on the shore of the Tamaki estuary would be a helpful start, while the Government should win the huffing & puffing battle. Building & Housing Minister Nick Smith talked about 48ha, 11.7ha going into housing, 2ha for a marae, and said 18ha was used for grazing cows. Mayor Phil Goff said almost 46ha was vested in Auckland Council, with an underlying Crown title.

The minister said proceeds would go to better recreational facilities and improving the reserve’s amenities. The argument is therefore over the quantity of amenities.

Pt England Reserve is the largest tract of public open space on the Tamaki River foreshore and provides both sportsfields & rural open space. Dr Smith said the Government intended to introduce legislation to lift the reserve status over 11.7ha and sell it to Ngati Paoa for the housing development.

Dr Smith said: “The greatest constraint to resolving Auckland’s housing challenges is finding suitable land, particularly in close proximity to the central city. The Pt England Reserve has been poorly used for decades, with 18ha of it used for grazing cows.

“This plan is about replacing the cows with homes and enhancing the balance of the reserve with improved recreational & cultural facilities. This initiative will give more families a warm, dry, affordable home, improve amenities in the area and help to resolve Ngati Paoa’s treaty settlement.

“The Pt England Development Enabling Bill that facilitates the use of the 11.7ha of the 48ha reserve for housing will be introduced to Parliament tomorrow [today]. Ngati Paoa will have the right to develop this land for housing and will pay fair market value. A further 2ha is being provided for the development of a marae as part of the cultural redress of the treaty settlement.

“The Government is committed to 100% of the proceeds of the land for housing development being reinvested in the Tamaki community. We are in discussions with the Auckland Council on the redevelopment of the reserve and a significant portion of the funds will be required for enhanced recreational facilities & improvements in the reserve’s amenities. Any balance will be reinvested in the adjacent Tamaki redevelopment.

“This Pt England development is complementary to the adjacent Tamaki regeneration project. The redevelopment of existing housing has the additional challenge of providing replacement homes in the interim, and in this way the Pt England development will help accelerate Tamaki.

“The project is very similar to that at Riccarton racecourse, where part of an under-utilised reserve is being used for housing and being enabled through special legislation. Our expectations are to achieve a minimum of 20% social houses & 20% affordable houses, but the details of the housing development are yet to be negotiated with Ngati Paoa.

“This is the ninth Crown land housing site to be announced and the sixth in Auckland. The programme is about the Government using its landholdings to help increase housing supply, and nationally we now have 1500 additional homes in the pipeline.”

Mr Goff, the Maungakiekie-Tamaki Local Board & Cllr Denise Lee called on the Government to reinvest the full proceeds of its sale in new & improved public open spaces for the local community.

Mr Goff said: “The Point England land was set aside decades ago for Aucklanders to enjoy for sport & recreation. Our strong & shared view is that all money from the sale of this land should go back into enhancing public open spaces in the area.

“Given the local population is expected to surge in the Tamaki area by 20,000 in the next 2 decades, and housing will need to intensify, it’s vital that residents still have access to outdoor spaces they can enjoy with their families.”

Mr Goff said the council & government had discussed what would be done with the proceeds of the sale, but an agreement was yet to be reached.

The council and the Tamaki Redevelopment Co are working on an open space network plan which involves redeveloping existing parks, including Pt England Reserve.

Attribution: Ministerial & mayoral releases.

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