A Meadowbank couple made $1.4 million in five years, buying a house for $587,000 and getting $2 million for it.
John Lantz of Ray White Remuera said the price achieved at auction by builder Duncan Robertson and his wife Belinda was thought to be a record for the area and the result of renovation work.
"I've been working in the area for 10 years and it's a record-setting price. The house is more like something out of Ponsonby or Herne Bay, not typical of Meadowbank," Mr Lantz said, telling how about 25 truckloads of earth had been taken away from the site to create a level area, new spouting was stainless steel and a sophisticated sound system was installed.
Property Guru information showed the Robertsons bought the house in July 2008 for $587,000, Mr Lantz said.
"We had about 250 groups through the three-week marketing campaign and over 70 people at the auction. It was highly contested with multiple bidders," Mr Lantz said.
Mr Robertson, who owns Aspen Construction, didn't say how much the extensive renovations cost but said he added 190sqm of floorspace to change the three-bedroom house into five bedrooms with a separate lounge, developed a 10m by 4m in-ground glass-fenced pool and redeveloped the back of the property to create an open-plan kitchen, living and dining area flowing into the back lawn. Mr Robertson said he would not have to pay tax on the profit he made because although he had bought with the intention of renovating, he had not intended to sell and no capital gains tax was in force.
The family is moving to a farm outside Kerikeri in Northland, he said.
Barfoot & Thompson said this week it had a record month in November, selling 189 houses at $1 million-plus. October's $663,123 average sale price rocketed up to $684,646.