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.
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