Dizzy extremes in Auckland property market

This 15.7ha lifestyle block near Orewa with a four-bedroom, three-bathroom home sold for $2.5million to someone who viewed it two hours before auction.

Hopeful buyers take desperate action, and tennis court on sale for six figures.

Auckland's rampant housing market is reaching staggering levels as sellers and would-be buyers go to new extremes to cash in on the property boom.

In a week when it was revealed Auckland properties were gaining an average daily value of up to $900, the Herald on Sunday can today report:

• A tennis court has been put on the market for almost $600,000.

• A lifestyle block sold this week for $750,000 above CV just two hours after the new owners saw it — meaning no due diligence was done.

• Scores of would-be buyers camped out overnight on Friday to get their hands on sections at an east Auckland development.

The never-ending boom has led a family to put a tennis court at Red Beach, 25 minutes north of Auckland, on the market with a starting price of $595,000.

The 645sqm section is one of the last remaining non-developed plots in the area and would be a prime location for a future housing development. A two-storey house would provide seaviews from the upper level.

By week's end the property had received a conditional offer.

Bare land in the area is scarce and QV.co.nz e-valuer statistics show median property prices in the area have risen from just under $550,000 in 2011 to $704,000 this year.

A three-bedroom Red Beach house, with two bathrooms, and on 600sqm of land, is on the market for $690,000.

Potential buyers line up for sections in Beachlands. Photo / Michael Craig

The marketing of the tennis court comes in the same week a lifestyle block in Upper Orewa Rd, about 20 minutes from Orewa, sold for $750,000 more than its CV — the successful bidder viewing the property just two hours before the auction. The 15.7ha property features a four-bedroom, three-bathroom brick-and-tile house, outdoor entertaining area and pool.

Bidding had started at $1.8 million, before quickly reaching a winning bid of $2.25m — well over its CV of $1.5m.

Another potential bidder, an expat Kiwi living in the UK, flew home for the auction. But the auction moved at such a pace, and to such a high level, the man didn't even get a chance to place a bid.

Both the tennis court and the lifestyle block were marketed by Bayleys. James Wilson from QV said the hurried purchase reflected the out-of-control market and said desperation in the marketplace was rife.

"People making impulse purchases without doing due diligence and building reports is widespread," he said. "People have a real fear of missing out."

In Beachlands overnight on Friday almost 40 people slept in their cars to try to secure sections at the Ti Toki Lanes subdivision. The 12 second-stage sections, priced from $425,000, sold within 90 minutes yesterday.

The site opened at 9.30am, with a first-in, first-choice policy being adopted.

But the system was criticised by one unsuccessful would-be buyer, 39-year-old Arun Sethi, who claimed he was sixth in line, had been waiting for 17 hours to secure his position, but his wife Preeti had borrowed his family's car to take their children to soccer practice.

A disappointed Arun Sethi missed out because he wasn't in a vehicle. Photo / Michael Craig

Professionals Real Estate Group agents said because he wasn't waiting in his car, he was not allowed in. A frustrated Sethi said it was "not fair at all".

"I'm a new migrant to the country ... and I just need a house to stay in," he said.

"I want to make my child's future over here because it's a beautiful country, and beautiful people. Everybody wants to bring up their child in a good manner, and I'm doing this. This is not good at all. I don't expect this from New Zealand."

Owner of Professionals real estate group for the eastern and southern suburbs Geoff Lovegrove said the company had "totally" been taken by surprised by interest in the sections.

Those able to get their hand on a section included brothers Ryan and Troy Larsen, who paid $480,000 each for adjacent properties.

Two weeks ago 18 other sections at the subdivision sold. A further 12 will go to auction on May 23.

— Additional reporting Patrice Dougan of NZME. News Service