Archive | Market

Research shows walkups take bigger share of apartment market

The ubiquitous Sydney 3-floor walkup, made popular over 60 years ago when new regulations required a lift in apartment buildings over 3 storeys, is at last starting to attract attention in Auckland.

CBRE Research NZ senior director Zoltan Moricz and research analyst Tamba Carleton say in a paper out today that walkup projects in the development pipeline have increased from 5 in March 2015 to 17 this month.

Over those 2 years, according to CBRE research, the whole apartment development pipeline has grown from 68 projects to 121, and the number of units in them from 4700 to 8600.

Mr Moricz & Ms Carleton said: “The apartment pipeline has undergone significant change in response to the evolution of market fundamentals as Auckland continues through its third apartment development cycle.

“Some of the challenges facing the sector that have recently garnered attention include: rising construction costs, tougher bank lending criteria & presale requirements, the effect of loan:value ratio rules and affordability. These & other factors have influenced the emergence of a ‘walkup’ style of apartment living, driven by a lower construction cost that has a flow-on effect through relative affordability to appeal to a wider demand base and enhance project feasibility.”

Walkups are defined as vertically attached dwellings that are in 2- or 3-storey buildings. They differ from terraced housing, which is defined as horizontally attached dwellings.

The apartment tradition in Auckland & Wellington is for buildings over 3 storeys, but the CBRE researchers said one of the main drivers of growth had been the significantly lower construction cost of walkups compared to traditional apartment building costs: “While construction costs for walkups in Auckland are broadly similar to terraced housing, they are about two-thirds the cost of traditional apartments. This proportion decreases further as traditional apartment building scale increases.

“In general, walkups are less complex to build than traditional apartment buildings and do not incur additional costs related to sprinkler systems & elevators, which are mandatory for buildings that are 4 or more levels in height.

“There is a separate issue affecting construction costs of high density projects, in that fewer construction companies have the capability & resources to undertake projects over a certain size, which pushes up the construction cost of highrise buildings.”

For the current Auckland apartment pipeline, the average cost/m² across all projects was 30% above the average for walk-ups, and that difference flowed through to the time it took to sell a project down: “While there are material differences between projects, walkups tend to sell down over 90% within 3 quarters of launch, compared to 60% for traditional apartments.”

Auckland’s new unitary plan will also make a difference, as the impact of rezoning the bulk of suburbia to enable more intensive development starts to be felt.

Attribution: Agency research.

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Hobsonville Land becomes HLC

Housing NZ Corp subsidiary Hobsonville Land Co Ltd changed its name to HLC (2017) Ltd on Tuesday, and has changed its trading name to HLC, representing “Homes Land Community”.

Chief executive Chris Aiken the change came as the company widened its focus to additional largescale developments around Auckland.

The company was formed to develop Hobsonville Point, the former NZ Defence Force site on the Upper Waitemata Harbour, and celebrated 10 years of residential development last year.

1000 homes have been built at Hobsonville Point and it’s now home to 2310 residents. About 500 more new homes/year are being built. On completion, the 167ha masterplanned development will have 4500 houses & over 10,000 residents.

Mr Aiken said the company had learned a great deal about building quickly at scale, and in a quality way that would foster strong communities and produce affordable homes.

Attribution: Company release.

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3 sales & 7 leases on Shore

Bayleys agents on the Shore have completed 3 sales in Rosedale & Unsworth Heights, and 7 leases spread around Hauraki, Milford, Northcote, Rosedale & Takapuna.




5 Civil Place, unit B:
Features: 232.1m² industrial unit – warehouse 143.6m², first-floor office 47.6m², ground-floor 40m², 4 parking spaces
Rent: $34,000 + gst
Outcome: sold in March for $726,000 + gst at a 5.68% yield, $3128/m² (including parking)
Agents: Matt Mimmack & Laurie Burt

27-29 William Pickering Drive, unit F4:
Features: 210m² office, 6 parking spaces
Outcome: sold in March for $760,000 + gst, $3619/m² (including parking)
Agents: Alex Strever & Ildy Meixner

Unsworth Heights

145 Unsworth Drive, unit 7:
Features: 186m² retail, 5 parking spaces
Outcome: sold in March for $520,000 + gst at $2796/m² (including parking)
Agents: Dean Gilbert-Smith & Adam Curtis



347-349 Lake Rd, shop 2:
Features: 55m² retail
Rent: leased in March for $17,000/year net + gst, premises rental $309/m²
Agents: David Huang & Adam Curtis


56 Apollo Drive, unit 3A:
Features: 67.4m² retail,
Rent: leased in March for $34,000/year net + gst, premises rental $504/m²
Agent: Terry Kim

177A Shakespeare Rd, upper floor:
Features: 68m² office, 3 parking spaces
Rent: leased in March for $24,000/year net + gst, premises rental $353/m² (parking free)
Agent: Terry Kim


Northmed, 3 Akoranga Drive, tenancy 3:
Features: 280m² retail, 2 parking spaces
Rent: leased in March for $160,520/year net + gst, parking $25/space/week, premises rental $564/m²
Agent: Jane Sims


34 Triton Drive, unit C4:
Features: 230m² office, 7 parking spaces
Rent: leased in March for $59,000/year net + gst, parking $20/space/week, net excluding parking $51,760/year, premises rental $225/m²
Agent: Alex Strever

36 William Pickering Drive, unit 4:
Features: 175m² industrial unit, 7 parking spaces
Rent: leased in March for $32,000 – 58m² office at $221/m², 67m² warehouse $120/m², 50m² showroom $221/m²
Agents: Ryan Dannhauser & Trevor Duffin


475 Lake Rd, level 1:
Features: 110m² office, 2 parking spaces
Rent: leased in March for $27,320/year net + gst, parking $30/space/week, $24,200 excluding parking, premises rental $220/m²
Agents: Dean Gilbert-Smith, Adam Curtis, David Huang, Michael Nees & Simon Aldridge

Attribution: Agency release.

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Trinity apartment sells

One apartment was sold, another apartment & a townhouse passed in at Bayleys residential auctions around the region this week (on top of the apartment sold at the city branch on Wednesday – click link below).

Isthmus east


Trinity, 429 Parnell Rd, unit 302:
Features: 106m², air-conditioned 2 bedrooms, 2 bathrooms, decks, 2 parking spaces
Outgoings: rates $3463/year including gst
Outcome: sold for $1.375 million
Agents: Gary & Vicki Wallace



3 Bellcroft Place, unit 1:
Features: 4-bedroom townhouse, 2 bathrooms, decks, garage
Outcome: passed in, back on market at $1.295 million
Agents: Amelia-Jane Hoffmann & Ryan Steven



12 Selwyn Rd, unit 1G:
Features: 2 bedrooms, 2 bathrooms, patio, parking space
Outcome: sold for $683,000
Agent: Doug McLean

Earlier story:
23 March 2017: Hotel unit sells on low yield and Mission Bay church goes

Attribution: Company release.

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Coastal sales that didn’t work pre-Christmas all go now

John Greenwood, who heads lifestyle & waterfront special projects for Bayleys, called off the auction of 3 coastal properties in December for the lack of genuine enquiry – and immediately started fielding calls about them.

Come February, sales of all 3 were negotiated.

John Greenwood.

Mr Greenwood said there was a change in the air after international politics played heavily in the last quarter of 2016 on decision-making to use surplus money buying luxuries like a holiday home in New Zealand.

“Buyers in the coastal market like to see some stability of the financial markets before entering into the purchase of bigger luxuries like a holiday home or second home, and tend to withdraw from making a decision or using their surplus funds until they can see 2 years of stability in the markets.

“With the events of Brexit & Trump offshore, and also the Australian banks tightening up on lending into the Auckland market, the enquiry basically disappeared in November & December.

“This resistance was across the board, from $1.5 million to $6 million the call was the same. However, in February the enquiry really jumped, with a very positive attitude to New Zealand’s position in the world and the state of the economy, all 3 of my withdrawn auction properties selling by negotiation in February in the price range of $2-2.5 million, and enquiry in this range has been stronger than ever from local buyers.

The enquiry in the higher bracket, however, is still very slow, with almost no enquiry locally over the $3.5 million level.”

The international market

“The media frenzy after the US elections, about Americans “flooding here in their droves” just wasn’t real. Yes, enquiry was happening, but in reality no noticeable real enquiry came out of the US until February.

“European enquiry, however, was quite strong, with buyers actually committing last year to coming to New Zealand specifically looking at lifestyle properties, and in February they came and had budgets in the $20 million-plus range.”

Mr Greenwood said Napier & Hawke’s Bay appeared to be the Europeans’ places of choice as they saw the infrastructure, the fact that there is a hospital (not one in the Bay of Islands or Queenstown) and that the towns have a well presented residential presence.

As for the American, he said enquiry had picked up, buyers were committing to coming and they had specific briefs: “Their budgets are from $5 million upwards, so hopefully this will give some impetus to the higher end of the market.”

Attribution: Agency release.

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Avoka & Scene 3 apartments sell despite their problems

Both apartments auctioned at Ray White City Apartments today had issues, but both sold under the hammer, thought it took some coaxing.

First up, a unit in Scene 3 with a parking space was leasehold, which has affected both market interest & pricing for several years. The second apartment is in the Avoka building, just off Karangahape Rd, where the body corporate has begun a remediation project.


Quay Park

Scene 3, 30 Beach Rd, unit 1007:
Features: leasehold, 45m², one bedroom, parking space
Outgoings: rates $1405/year including gst; body corp levy $4056/year, ground rent $8759/year
Income assessment: $490-550/week
Outcome: sold for $130,000
Agent: James Mairs


Avoka, 31 Day St, unit 3F:
Features: 49m², one bedroom, 2 balconies; the body corporate has begun a remediation project
Outgoings: rates $1075/year including gst; body corp levy $4430/year
Outcome: sold for $175,000
Agent: James Mairs

Attribution: Auction.

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Commercial property & 2 apartments sell as 8 units passed in

The one commercial property on Barfoot & Thompson’s city auction list this morning, an early learning centre, was sold under the hammer, followed by a slow journey as 8 apartments were passed in. Then, breaking the run at the end of the auction, the last 2 apartments sold (they’re listed below by location, not by auction list order), in the Cintra (pictured) off Symonds St and a unit in Zest.




Harbour Oaks, 16 Gore St, unit 33H:
Features: 2 bedrooms, secure parking space
Outgoings: body corp levy $5345/year
Outcome: passed in at $512,000
Agents: Wendy Feng & Jack Li

Learning Quarter

Crown on Cintra, 3 Whitaker Place, unit 16C:
Features: 39m² studio, study, balcony, parking space, leaky issues identified
Outgoings: body corp levy $4155/year
Outcome: sold for $222,000
Agents: Oscar Zhao & Leo Shin


Q Central, 54 Liverpool St, unit 7B:
Features: leasehold, 64m² 2-bedroom penthouse, balcony
Outgoings: rates $1582/year including gst; body corp levy $3549/year, ground rent $7642/year
Income assessment: $450/week
Outcome: passed in at $115,000
Agents: Zoran Farac & Stephen Shin

Bianco off Queen, 8 White St, unit 9C:
Features: 54m², 2 bedrooms, balcony
Outgoings: body corp levy $6561/year
Income assessment: $600/week
Outcome: passed in at $480,000, back on the market at $538,000
Agents: Annie Xu & Sean Zhang

Victoria Quarter

88 Cook St, unit 7:
Features: 148m², 2 levels, 3 bedrooms, living area on each floor, 2 secure parking spaces
Outgoings: body corp levy $3003/year
Outcome: no bid
Agent: Sean Lee

Hobson Gardens, 205 Hobson St, unit 5H:
Features: 140m², 3 bedrooms, 2 bathrooms, study, parking space
Outgoings: body corp levy $6167/year excluding water
Outcome: no bid
Agents: Stephen Shin & Yasu Ka

Zest, 72 Nelson St, unit 1028:
Features: 48m², 2 bedrooms, 2 bathrooms, balcony, parking space
Outgoings: body corp levy $5774/year
Income assessment: $450/week
Outcome: sold for $450,000
Agents: Wendy Feng & Jack Li

Alpha, 17 Vogel Lane, unit 1102:
Features: 46m², one bedroom, balcony, parking space
Outgoings: rates $1457/year including gst; body corp levy $4460/year
Outcome: no bid, back on market at $569,000
Agents: Stephen Shin & Justin Choi

Kingsbridge, 72 Wellesley St, unit 30:
Features: 2 bedrooms, wraparound balconies, parking space
Outcome: passed in at $550,000
Agents: Rita Herceg & Alex Allan


Quay Regency, 148 Quay St, unit 7C:
Features: one bedroom
Outgoings: body corp levy $4154/year
Outcome: passed in at $405,000
Agents: Alex Allan & Rita Herceg


Isthmus west

Pt Chevalier

90 Pt Chevalier Rd:
Features: 639m² corner site, 110m² building, early learning centre
Outcome: sold for $1.36 million
Agents: Duane Mullooly & Chris Peterson

Attribution: Auction.

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5 sell out of 13 intensive units auctioned at Barfoots

5 units sold out of 13 apartments, townhouses, suburban units & cross-leases auctioned at Barfoot & Thompson’s city office yesterday, and one cbd apartment was withdrawn. Among the sales was a 2-bedroom apartment overlooking Parnell Rd (pictured).


Learning Quarter

The Quadrant, 10 Waterloo Quadrant, unit 2207:
Features: 2-bedroom apartment, balcony, parking space
Outcome: withdrawn from auction
Agent: Dong Liu

Isthmus east


218 Green Lane West, unit 37:
Features: 3-bedroom unit, 2 bathrooms, study, double garage
Outgoings: body corp levy $4250/year
Outcome: passed in at $900,000
Agents: George Fong & Laura McAuley


73C Carlton Gore Rd, unit 3:
Features: one-bedroom 1930s apartment, private courtyard
Outcome: passed in
Agents: Cheryl Burgess & Ian Griffiths

Kings Square, 26 Remuera Rd, unit 506:
Features: over 100m², 3-bedroom apartment, 2 bathrooms, double garage
Outgoings: body corp levy $3421/year
Outcome: no bid, back on market at $1.019 million
Agents: Cici & Miro Wang

9 Sarawia St, unit 408:
Features: one-bedroom apartment in former motel, offstreet parking
Outcome: sold for $432,500
Agents: Jill Jackson & Emma John


387 Parnell Rd, unit 6:
Features: 2-bedroom apartment, tandem garage
Outgoings: rates $2183/year including gst; body corp levy $7232/year
Outcome: sold for $830,000
Agents: Silvia Poletti & Bobby McMillan


11 & 13 Hapua St:
Features: 2 adjoining properties on combined 1602m², 4-bedroom duplex with double internal-access garage on 641m², 3 bathrooms, and vacant 961m² section with resource consent for 2 houses
Outcome: no bid
Agent: Cindy Yu

Isthmus west

Freemans Bay

47 Napier St:
Features: 119m², 3-bedroom terrace, 2 bathrooms, courtyard, internal-access garage
Outgoings: body corp levy $4834/year
Outcome: sold for $972,500
Agent: Ric Parore

116 Wellington St, unit 3:
Features: one-bedroom unit, private courtyard, storage, offstreet parking
Outgoings: body corp levy $2512/year
Outcome: sold for $665,000
Agent: André Boddé

Grey Lynn

7C Scanlan St:
Features: 136m², 2-level 2-bedroom apartment in warehouse conversion, storage, 2 parking spaces
Outgoings: body corp levy $1646/year
Outcome: no bid
Agent: David Dowse


52 Aitken Terrace, unit 1B:
Features: 2-bedroom apartment, deck, double basement garage
Outgoings: body corp levy $4900/year
Outcome: sold for $920,000
Agents: Susan Murdock & Sue Cohen

Mt Eden

68 Ellerton Rd:
Features: cross-lease, half share in 976m², 3-bedroom villa, attic, study, carport
Outcome: no bid
Agents: Derek Helliwell & Di Lynds

Mt Roskill

7 Jasper Avenue:
Features: cross-lease, half share in 837m², 3-bedroom bungalow, carport
Outcome: passed in at $935,000
Agents: Bella Stefano & Sherry Shao


99B Lambeth Rd:
Features: cross-lease, quarter share in 1214m², 3-bedroom house, deck, carport
Outcome: no bid
Agent: Mal MacElvanna

Attribution: Auctions.

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Hotel unit sells on low yield and Mission Bay church goes

A Portland Tower apartment on Queen St, in the Quest hotel pool, was sold by the mortgagee on a 4.2% yield at Bayleys’ auction today, and a Mission Bay church was also sold, future use unknown.


Queen St

Portland Tower, 62 Queen St, unit 14A:
Features: 31m², one-bedroom apartment on Quest hotel lease until 2030, balcony
Outgoings: rates $2440/year including gst
Income assessment: $12,000/year
Outcome: sold at ANZ Bank mortgagee auction for $286,500 at a 4.19% yield
Agents: Dave Hamlyn & Marcus Fava

Isthmus east

Mission Bay

69 Patteson Avenue:
Features: 1313m² section, Orakei Methodist church & hall, zone changing from residential 2B (one dwelling/600m²) to mixed housing suburban (minimum lot size 400m²)
Outcome: sold for $2.5 million at $1904/m² land
Agent: Alan Elliott

Isthmus west

Mt Albert

10 Counsel Terrace, unit 1:
Features: cross-lease, 1/3 share in 1050m², 3-bedroom townhouse, 2 bathrooms, conservatory, garage converted to fourth bedroom
Outcome: no bid
Agent: Angela Yang

Attribution: Auction.

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Both commercial properties sell at Colliers auction

Both warehouse properties auctioned at Colliers in Auckland today sold under the hammer, the first at East Tamaki at a yield just over 6%, and the second at Rosedale at 5.5%.



4A Rothwell Avenue:
Features: 974.9m² renovated unit in the North Harbour industrial estate – office 168.5m² on 2 levels, clearspan warehouse 806.4m², 6.4m stud height, roller doors at both ends, leased to international tenant Clariant
Rent: $120,640/year net + gst on lease with 2.5 years to run
Outcome: sold for $2.205 million at a 5.47% yield
Agents: Matt Prentice, Jimmy O’Brien & Shoneet Chand


East Tamaki

5 Greenmount Drive:
Features: 3995m² site, 2748m² office & warehouse – warehouse 2362m², office & amenities 298m² on 2 levels, mezzanine storage 87m², tenant Talvor Motorhomes Ltd on new 6-year lease, one 6-year right of renewal
Rent: $244,500/year net + gst + opex
Outcome: sold for $4.05 million at a 6.04% yield
Agents: Andrew Hooper, Dwayne Warby & Matt Prentice

Attribution: Auction documents.

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