Developers Eye Quality Blocks at Auction

Ray White New Zealand scheduled 130 properties to go under the hammer last week, with a clearance rate of 56.3 per cent. 

The group recorded an average of 2.4 registered bidders and 1.9 active bidders per auction, with 81.2 per cent of auctions receiving active bidders. 

“As the nation waits with anticipation for Wednesday's forthcoming OCR announcement, Ray White’s auction activity continued to deliver strong and consistent results last week, with 130 auctions scheduled across the country,” Ray White New Zealand head auctioneer Sam Steele said. 

“A clearance rate of 56.3 per cent underscored the growing preference for auctions as a premier method of sale in today’s dynamic market.

“Robust interest from motivated buyers saw the average number of registered bidders rise to 2.4 per auction, a compelling indicator of the competitive energy driving successful outcomes.

“As listing volumes begin to steady, more sellers are turning to auction, drawn by its ability to attract a broader pool of unconditional buyers. In Auckland, the recent release of new CVs is adding a layer of intrigue, with early results suggesting a potential lift in buyer engagement.

“Auctions also remain the fastest path to market, averaging just 38 days to sell compared to 60 via private treaty, a significant advantage in the current climate.

“With auctions accounting for 29.9 per cent of all Ray White listings nationwide last week, confidence in their transparency, pace, and performance continues to build.”

The top result for the week went to Ray White Remuera agent Banson Chong who sold 316 Blockhouse Bay Road, Avondale, Auckland City, under the hammer for $3.3 million.

With Ray White auctioneer John Bowring on the gavel, the property recorded two registered bidders and two active bidders. 

“It was a short auction campaign but generated a lot of interest from developers and long-term investors. It was nine units generating about $180,000 per year in rental income,” Mr Chong said.

“The buyer wants to hold the property long-term for passive income. 

“The seller was looking to retire, she had held the property for 10 years and just wanted to enjoy her retirement.

“We are seeing the fear of missing out on great development sites is coming back. I have heaps of developers looking for good development opportunities at the moment.” 

The auction with the highest number of bidders went to Ray White Manukau agent Lawrence Kenyon-Slade who recorded 16 registered bidders and 15 active bidders at his 17 King Street, Papatoetoe, Manukau City.

With Ray White head auctioneer Sam Steele calling the auction, the property sold under the hammer for $1.766 million, $216,000 over the new CV.

Mr Kenyon-Slade said the seller was an investor who bought the property eight years ago. 

“We had a lot of interest from investors and developers as it was a nice flat block with good access to services,” Mr Kenyon-Slade said.

“A developer won the winning bid, he’s looking to build a few dwellings on the property. The underbidder was also a developer.

“Well located sites are seeing really strong interest from developers.”