Archive | Flat Bush

Subdivision goes awry, but Ormiston Rd land value keeps soaring at auction

A complicated Flat Bush development site taken to mortgagee auction at One Agency yesterday was sold under the hammer for $3.36 million + gst.

An estimated $600,000 of drainage & earthworks is still required to complete land preparation.

Consent has been granted for a 5-lot lifestyle subdivision of the 2.43ha Ormiston Rd property, but that assumes inclusion of a separately owned lot (marked by the dotted line in photo) which would take the site over the 2.5ha needed to activate the resource consent.

Dorchester Finance Ltd (renamed Oxford Finance Ltd on 1 May) took the property to mortgagee auction as financier to owner Pointe Ormiston Estate Ltd, and it was bought by real estate agent & developer Ricky Ali, who was in RE/Max’s top 5 for New Zealand from 2013-16, and Auckland’s No 1 or 2 for 3 of those years.

The value – or value plus cost – of the land has risen exponentially over the last 3 years. From $103/m² when Pointe Ormiston acquired it for $2.5 million at the start of 2016, its most recent capital valuation of $2.75 million, used in the auction promotion, put the land value at $113/m².

The $3.36 million sale price at yesterday’s auction lifted the value to $138/m², but the earthworks still required will lift the cost to about $4 million, or $165/m², a 45% increase over the stated capital value.

South

Flat Bush

481 Ormiston Rd:
Features: 24,308m² development site with earthworks & drainage partially done but without inspections completed, subdivision resource consent reliant on addition of small adjoining lot
Outgoings: rates $4957/year
Outcome: sold at mortgagee auction for $3.36 million + gst
Agent: George Erdos

Attribution: Auction.

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Retail sale in Flat Bush, industrials in Papakura & Wiri

Bayleys agents in South Auckland have sold a part-occupied new convenience retail complex (pictured) in Flat Bush, a vacant Papakura industrial site and a truck servicing holding in Wiri.

South

Flat Bush

1 Arranmore Drive:
Features: 1463m² corner site, recently developed part-occupied 491m² convenience retail complex split into 5 tenancies; superette, café & Indian takeaway are returning $119,257/year net + gst
Rent: estimated total rental if fully leased, up to $180,000/year net + gst
Outcome: sold for $2.55 million + gst
Agents: Ben Bayley & Tony Chaudhary

Papakura

14-16 Parker St:
Features: 2.85ha of vacant industrial land, previously the site of an abandoned development project with $1.7 million spent on preconstruction
Outcome: sold for $5 million + gst to an owner occupier in the crane industry at $175/m²
Agents: Shane Snijder & Peter Migounoff

Wiri

6 Tacoma Rd:
Features: Fully fenced 8887m² landholding, modern 1280m² workshop, office & showroom building, only 12% site coverage; used for truck servicing, the high stud workshop has a 22m-long service pit & full drive-through capability plus 8 roller doors; largely sealed yards & concrete forecourts surround the workshop, an additional 4473m² metalled rear yard has washdown facility
Outcome: sold to trucking company with vacant possession for $6.6 million + gst
Agent: Mike Marinkovich

Attribution: Agency release.

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City restaurant & Flat Bush office passed in at auction, but Colliers gets 2 other sales

Both the city restaurant premises & Flat Bush office auctioned at Colliers today were passed in, but the agency reported 2 non-auction sales, one an office in central Manukau and the other an office & warehouse in the North Harbour estate at Rosedale on the North Shore.

CBD

High St

42C High St:
Features: 110m² retail unit at foot of the Metropolis apartment tower, 2 parking spaces, 2 storage units, tenant Café BBQ Duck Ltd
Rent: $92,500/year net + gst on 7-year lease, initial term from 1 December 2016, 3 set annual increases followed by market reviews, one 7-year right of renewal
Outgoings: $43,003/year + gst; casual parking space $80/week including gst included in rental; net lease capped at $20,000 + gst until 1 December 2021 under vendor underwrite
Outcome: passed in at $1.45 million at auction
Agents: Tony Allsop & Gawan Bakshi

North-east

North Harbour

7A Parkhead Place:
Features: 1196m² office & warehouse tenanted by Australasian company Vocus (NZ) Ltd
Rent: $196,000/year + gst + opex
Outcome: sold to an investor for $3.3 million + gst
Agents: Matt Prentice & Euan Stratton

South

Flat Bush

Laidlaw Business Park, 42 Ormiston Rd, unit 9:
Features: vacant 483m² office, 12 parking spaces
Outcome: passed in at auction
Agents: Matthew Barnes & Chris Wakim

Manukau Central

20 Lambie Drive, unit 6:
Features: 385m² second-storey open plan office unit, 8 parking spaces
Outcome: sold with vacant possession for $1.32 million
Agents: Matthew Barnes, Ryan Gibb & Alex Harper

Attribution: Auction documents, agency release.

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Updated: 3 sell out of 8 at Ray White auction

Published 28 June 2018, updated 30 June 2018:
3 of the 8 apartments auctioned at Ray White City Apartments sold under the hammer, including one of the 2 units in the Volt, above Mayoral Drive (pictured).

Update: Full apartment details now posted.

CBD

Learning Quarter

Cambridge, 43 Anzac Avenue, unit 506:
Features: 18m² studio
Outgoings: rates $952/year including gst; body corp levy $4640/year including water & electricity
Income assessment: $320/week fixed until November; appraisal, $320-330/week furnished
Outcome: passed in at $150,000, back on market at $190,000
Agents: May Ma & Mark Li

Quay Park

Scene 3, 30 Beach Rd, unit 605:
Features: leasehold, 83m², 2 bedrooms, study, 2 bathrooms, deck, 2 parking spaces
Outgoings: rates $1721/year including gst; body corp opex levy $6253/year, ground lease $12,998/year
Outcome: no bid
Agent: James Mairs

Uptown

Volt, 430 Queen St, unit 117:
Features: 38m² + balcony, furnished 2 bedrooms, new furniture package a year ago
Outgoings: rates $1149/year including gst; body corp levy $3570/year
Income assessment: $2167/month from tenancy ending 17 July
Outcome: passed in at $340,000, back on market at $389,000
Agents: Judi & Michelle Yurak

Volt, 430 Queen St, unit 1416:
Features: 38m² + balcony, furnished 2 bedrooms,
Outgoings: rates $1240/year including gst; body corp levy $3975/year
Income assessment: $470-490/week furnished
Outcome: sold for $370,000
Agents: Judi & Michelle Yurak

Victoria Quarter

Zest, 72 Nelson St, unit 802:
Features: 38m² + balcony, furnished 2 bedrooms, secure parking space
Outgoings: rates $1266/year including gst; body corp levy $4150/year (water not included)
Income assessment: $450/week fixed until end November, $55/week for parking
Outcome: sold for $395,000
Agents: Judi & Michelle Yurak

Isthmus east

Mt Wellington

Thompson Park apartments, 8 Thompson Park Rd, unit 46:
Features: 91.1m² including 10.4m² balcony, 2 bedrooms, 2 bathrooms, study, heat pump, 2 parking spaces (one covered), storage locker
Outgoings: rates $1921/year including gst; body corp levy $2968/year
Income assessment: $680-720/week
Outcome: no bid
Agent: Steve King

North-east

Takapuna

Spencer on Byron, 9-17 Byron Avenue, unit 1807
Features: 48m², one bedroom, balcony, parking space
Outgoings: rates $1295/year including gst; body corp levy $3456/year
Income assessment: currently rented out on Airbnb
Outcome: passed in at $395,000
Agents: James Mairs & Gillian Gibson

South

Flat Bush

11 Carlos Drive, unit 12:
Features: 90m² including deck, 2 bedrooms, 2 ensuites, top floor, 2 bathrooms, 2 covered parking spaces; building defects identified, owner passing full rights to buyer
Outgoings: rates $1672/year including gst; body corp levy $5081/year
Income assessment: $480/week current, long-term tenant
Outcome: sold for $115,000
Agents: Dominic Worthington & Ady Huang

Attribution: Auction.

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2 commercial properties sell at Colliers auction

Both commercial properties auctioned at Colliers yesterday were sold under the hammer.

The agents said the Onehunga property’s overall size and warehouse:office ratio was in huge demand from occupiers, with little to no supply in this size & price range, and it was under-rented.

Isthmus east

Onehunga

34 Princes St:
Features: 627m² mixed-use site, 405m² net lettable area – warehouse 341m², office 63m², seismic rating 75% of new building standard
Rent: $43,000/year net + gst (under-rented)    
Outcome: sold for $1.185 million
Agents: Ben Cockram & Hamish West

South

Flat Bush

2 Bishop Dunn Place, unit 3:
Features: vacant 132m² ground-floor office fronting Te Irirangi Drive  
Outcome: sold for $685,000
Agents: Matthew Barnes & Jeremy Barnett

Attribution: Auction documents.

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3 properties pulled from auction list plus 3 more in South Auckland sold

3 South Auckland properties originally included in Bayleys’ Total Property 3 auction list, but excluded before the 17 May event, have since been sold. They are 60-62 Tiraumea Drive in Pakuranga, 254A Roscommon Rd in Wiri and 336 Great South Rd, Papakura.

Another 5 properties in East Tamaki, Flat Bush, Papakura & Pukekohe have also been sold.

South

East Tamaki

37 Greenmount Drive, unit C7:
Features: 109m² industrial unit – 81m² high stud warehouse & amenities, 28m² mezzanine floor, full height roller door & 3-phase power, 2 parking spaces, controlled access to complex
Outcome: passed in
Agents: Roy Rudolph & Katie Wu

3 Torrens Rd, unit 4:
Features: 155m² unit in Burswood retail strip, ground-floor retail space of 135m2 plus 25m² mezzanine, 4 parking spaces at front & one at rear
Outcome: sold vacant for $465,000
Agents: Katie Wu & Ken Hu

Flat Bush

201 Murphys Rd:
Features: 1386m² of bare land zoned neighbourhood centre allowing for 3-level buildings, retail on ground floor & residential above
Outcome: sold for $1.95 million at $1407/m²
Agent: Dave Stanley

Pakuranga

60-62 Tiraumea Drive:
Features: 1355m² corner site in 2 titles zoned business neighbourhood centre, 430m2 single-level building, 3 shops (one vacant) plus residential accommodation
Rent: $50,010/year net + gst, estimated potential income about $65,000/year net + gst
Outcome: sold for $940,000 at a 5.3% yield on current rent, 6.9% on prospective rent
Agents: Tony Chaudhary, Janak Darji & Amy Weng

Papakura

336 Great South Rd:
Features: 1419m² corner site, resource consent granted for childcare centre catering for 85 children in 519m² of proposed building plus existing dwelling, with plans for 3 indoor play areas & 17 parking spaces
Outcome: sold for $1.45 million
Agents: Tony Chaudhary, Amy Weng & Janak Darji

82 Hunua Rd:
Features: 1.9488ha rear, mostly bare site zoned heavy industrial
Outcome: sold with vacant possession for $4.4 million at $225.70/m²
Agents: Shane Snijder & Peter Migounoff

Pukekohe

200 King St:
Features: 220m² streetfront retail & office, occupied by a sushi shop & an accountancy practice
Rent: $76,825/year net + gst
Outcome: sold for $1 million at a 7.7% yield
Agents: Shane Snijder & Peter Migounoff

Wiri

254A Roscommon Rd:
Features: 3886m² level industrial site, security-fenced yard, 497m² of various basic buildings
Rent: $5394/year net + gst holding income
Outcome: sold for $2.15 million at $556/m2
Agents: Shane Snijder, Nick Bayley & Jamsheed Sidhwa

Attribution: Agency release.

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Sale on Devonport waterfront

A grand Edwardian unit on the Devonport waterfront (pictured) was sold under the hammer at Bayleys’ North Shore residential auction last week.

It was one 6 apartment & townhouse sales at suburban branches around the region. Another 2 sold at the city office’s auction.

Isthmus east

Newmarket

73A Carlton Gore Rd, unit 7:
Features: 3-bedroom terrace in enclave of 9 townhouses, 2 bathrooms, parking space
Outcome: passed in, back on market at $935,000
Agent: Jenny Kek

Parnell

9 St Georges Bay Rd, unit 2D:
Features: 2-bedroom apartment, 2 bathrooms, study, loggia, 2 basement parking spaces, 2 storage units
Outgoings: rates $3833/year including gst
Outcome: sold for $2.05 million
Agent: Blair Haddow

Remuera

11 Victoria Avenue, unit 2:
Features: 143m², 2-bedroom ground-floor apartment, 2 bathrooms, lift to garage & storeroom
Outcome: sold for $1.552 million
Agents: Robert Ashton & Carmel McLaughlin

North-east

Devonport

5A King Edward Parade:
Features: 220m², 2-bedroom single-level apartment in the former Elizabeth House on waterfront, 3 living rooms, private rear courtyard, double garage, French doors to front terrace, seismically strengthened; initially conceived as a luxury hotel, it has ornate plaster moulded ceilings, 4m stud, central heating, gas fire, underfloor heating
Outcome: sold for $3 million
Agent: Victoria Bidwell

132 Victoria Rd, unit 1C:
Features: 2-bedroom apartment, 2 bathrooms, 2 parking spaces
Outcome: sold for $875,000
Agent: Prue de Bie

South

Flat Bush

96A Michael Jones Drive:
Features: 89m², 2-bedroom ground-floor apartment, 2 courtyards, parking space
Income assessment: $450-500/week
Outcome: passed in, back on market at $499,000
Agent: Clare Nicholson

Howick

6 Baird St:
Features: 3-bedroom townhouse, 2 bathrooms, private garden, parking space
Outcome: sold for $898,000
Agent: Doug McLean

Somerville

40B Simmental Crescent:
Features: 3-bedroom townhouse, internal-access garage with workshop
Outcome: sold prior for $920,000
Agent: Berwyn Moore

Sunnyhills

42 Stanniland St, unit 1:
Features: 2-bedroom unit, internal-access garage
Outcome: sold prior for $670,000
Agent: Angela Rudling

Earlier story:
25 November 2016: Multi-tenant Oneroa building & 2 apartments sell at auction

Attribution: Auction roundup.

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First Ormiston homes built & sold

3 months after the first major building in the Ormiston town centre, the Pak ‘n Save supermarket, opened, 7 of the first tranche of 63 homes have been completed.

Resource consents have been lodged for another 70 terraced houses, a medical centre and an office building.

The 19ha Ormiston development at Flat Bush, a joint venture between the Todd Property Group Ltd & Auckland Council, will see the creation of a new community in south-east Auckland with a mix of retail, commercial & residential buildings & community infrastructure.

Ormiston is expected to have a population the size of Dunedin (about 125,000) in less than the 15 years Dunedin is expected to grow by about 5500. The entire Ormiston development is expected to be completed around 2023.

It will include a mix of housing options, from high quality terraces to spacious apartments, all clustered around green & shared spaces near the 94ha Barry Curtis Park.

3 of the 3-bedroom homes in the first tranche, on Haddington Drive, have been sold & tenanted.

Mayor Len Brown said on Friday: “With all the talk about how we cater for the unprecedented growth Auckland is experiencing at present, largescale developments like we’ve seen at Hobsonville Point are the key to retaining existing and accommodating future Aucklanders. Ormiston is another great example, with a carefully created masterplan that makes the most of its surrounding environment to create a true community and, if the first homes are anything to go by, it’s going to be a great place to call home.”

Council property arm Panuku Development Auckland’s development director, Allan Young, said design & community outcomes had been fundamental to the masterplanning process from the outset: “When delivering at scale, it needs to be as much about quality as quantity, and this is nicely demonstrated in these early builds by Todd Property & its building partner, Fletcher Living.”

Image above: The first houses at Ormiston (Cactus Photography).

Attribution: Council release.

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Variation 8 for Flat Bush special housing area approved

The plan change to rezone 195ha at Flat Bush became operative on Friday 19 February. It will facilitate the development of 2500 sites under the special housing areas legislation.

Under plan variation 8, the land will be rezoned from future urban & countryside living to mixed housing urban, mixed housing suburban & neighbourhood centre.

There were 3 applicants for resource consent for qualifying developments at 64 & 84 Thomas Rd, 125 & 125A Murphy’s Rd and 187 Flat Bush Rd – Hugh Green Ltd (now with the late Mr Green’s daughter, Maryanne Green, in charge), Murphys Development Ltd (Brian Hong Biao Chen, Andrew Guest & Dan Xiao) & Eastfield NZ Ltd (Lin Zi).

Link: Auckland Council, variation 8 decision

Attribution: Decision.

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Housing catchup starts as rapid population growth continues

Auckland grew at 119 people/day in the last year, according to the latest research from Statistics NZ. That’s equal to demand for about 44 new homes/day at an occupancy rate of 2.7/household. About 43,400 people/year, 16,000 homes/year.

Construction is cyclical but has generally fallen short of demand since the immigration spike in 2003, and a Regional Growth Forum paper 5 years before that acknowledged a shortfall in land available for housing.

Nationally, consents for new homes have been above 2000/month for the last 7 months (and most likely 8 months when Statistics NZ releases the October figures on 30 November).

In the year to September, Auckland had 9251 consents for new homes, including apartments, flats, townhouses & retirement village units. The year before that, 7366.

When the elderly move into a retirement village, they generally make a larger home available; other apartment dwellers will be a mix of empty-nesters, young couples, groups of flatmates, only some of them vacating larger homes.

Demolitions aren’t counted, and Statistics NZ’s quarterly report on building work put in place records total values but not completion numbers. Completions are also cyclical – many homes consented at the top of a building cycle won’t be built, or not immediately, and a rash of apartment developments proposed in a short timeframe will usually see a few fall by the wayside.

Factors influencing both demand & supply are predictable, and are also numerous. On the demand side, emigration has slumped while immigration has spiked upward; Australia’s economy will perk up in a year or 2, though the lift from mineral exports is likely to take longer, so the turnaround in trans-Tasman migration will have a slow start, picking up over several years; low interest rates encourage borrowing and therefore home purchase, but also contribute to the rise in capital cost; Auckland’s continuing economic growth will encourage new arrivals both domestically and from overseas; the shift toward greater acceptance of public transport and the resulting growth spots will focus both residential & business growth in hotspots around the region.

On the supply side, construction will pick up in special housing areas when infrastructure is in place, and that is being co-ordinated better now than ever before – co-ordinated to a high degree for the first time in 4 decades, probably longer; the number of proposed apartment developments has lifted sharply and might not taper off the way it has in the last few upcycles because of a change to greater acceptance of intensive living; more intensive suburban growth is starting to spread and will make greater provision for families through lowrise & midrise developments.

Economic factors will contribute to changes in employment opportunities, and therefore the population makeup, income brackets and therefore housing expectations. The private sector doesn’t have a great need to look at overall employment types, but Auckland Council has started the process toward encouraging sector development, which should lead to some significant geographic & income factors changing.

The super-city council began in 2010 with aspirations to lift poorer, and very Polynesian, South Auckland suburbs economically through the Southern Initiative. That programme has faltered but needs to be prioritised to meet higher educational demands, which will also lead to changes in housing demands.

Many see that as taking the council outside its core domain and into the central government realms of education & encouragement of business.

A feature of the super-city through the Auckland Plan, endorsed in 2012, is that it encompasses these wider issues because they affect the makeup of the city. A swathe of poor suburbs, staying poor while others prosper, guarantees future turmoil. A proactive council will lift aspirations & performance.

Meanwhile the common complaint is that the council isn’t providing the services its predecessors used to, to the same standard the predecessors used to. On my scoresheet, many issues get recognised & resolved, numerous issues don’t get resolved because of structural changes within the council or the budget has been taken away. Overall, the big issues are starting to be dealt with, at huge cost which predecessors preferred to defer or meet only partially because inadequacies in infrastructure such as sewers didn’t attract determined attention as they couldn’t be seen. And some niggly little local issues still fester.

The council has brought in many new executives with the skills to lead these changes; the next challenge is to introduce political skills to match the requirement for better decision-making. That’s not easy. Politicians need to keep an ear to the ground and can’t shift too far from their political base, while also leading rather being led by the nose.

Special housing areas

The council issued notice today of its approval of variation 11 to the proposed unitary plan for a special housing area at Whenuapai & accompanying resource consent, rezoning 16.8ha from future urban to the mixed housing suburban & local centre zones.

The qualifying development will provide for 51 residential sections (50 new, one around an existing house) & 10 superlots, along with establishing onsite infrastructure.

Last week, commissioners heard the application for private plan variation 8 to rezone 200ha at Flat Bush under the housing accord provisions.

It has 3 applicants for resource consent for qualifying developments – Hugh Green Ltd (now with the late Mr Green’s daughter, Maryanne Green, in charge), Murphys Development Ltd (Brian Hong Biao Chen, Andrew Guest & Dan Xiao) & Eastfield NZ Ltd (Lin Zi).

And today, the hearing begins for another group of plan variations & resource consents, this time covering about 240ha on the Hingaia Peninsula.

The applicants for proposed unitary plan variations 1, 5 & 7 are Karaka Brookview Ltd (Mark O’Brien and Frank, Juliet & Richard Reynolds), Hayfield SHA Ltd (Nigel Hosken & Juliet Reynolds) & Gar-Gar Ltd (Jamshed & Nilaofer Behram Meher-Homji), and KARLA (Karaka Area 1B Residents & Landowners Association) & Karaka Harbourside Estate Ltd (Ian & Jim Ross).

The Rosses have been trying unsuccessfully to get development consent for 10 years. Although some parts of their proposal and those of the Reynolds interests are disputed by council planners & engineers, early approval is conceivable.

The Rosses said that if they got consent before February they could have earthworks underway at the end of next year.

The special housing process is speeding up the ability to build, but considerations such as earthworks seasons will vary the development timeframe. Nevertheless, special housing areas are coming onstream and will add thousands of sections for development in the next couple of years.

That will be followed by changed rules for development throughout Auckland once the unitary plan is approved next year (appeals may hold up parts of it), enabling more intensive brownfields development and also setting parameters for adding more land zoned & ready for development.

Thus the bleak picture of supply failing to meet demand for most of 2 decades will be improved in large lumps, though still with a shortfall to overcome.

Attribution: Council consent documents, Statistics NZ.

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