One of the last undeveloped original baches in an enviable Mount Maunganui harbour beachfront location has been snapped up after more than half a year on the market.
The original cottage - in a prime position on The Mall in Pilot Bay, which has a retail value of $6.83 million - was put on the market in May and finally sold last month, OneRoof records show. The sale price is not yet publicly available.
The deal comes as several other development properties on the Golden Mile in the relatively rare waterfront locations are still up for grabs after being listed several months ago.
The two-bedroom, 110sq m 1950s cottage sits on a rare 862sq m section, and was described in its listing as “undoubtedly one of the most desirable positions in Mount Maunganui”. The size of the section means it affords the opportunity for people to develop, extend or renovate the existing property located on the rear half of the section, the listing said. Records show the property last publicly sold in 1991 for $415,000.
A spokesperson for Bayleys, the agency that marketed the property, told OneRoof “it is an iconic property and it attracted a lot of interest”, but was unable to make any further comment about the December sale.
However, a nearby property at 27A The Mall, which has an RV of $22.03m, is still for sale and is being pitched as a “once-in-a-lifetime opportunity” for purchasers wanting to buy into the “tightly-held, high-demand, high-net worth location”.
Bayleys Bay of Plenty general manager Jon O’Connor says they received interest from various sectors because of the existing income the motel provides and the high-density development opportunities the large 1856sq m site lends itself to.
A 1970s brick and tile home on Oceanbeach Road in Mount Maunganui, listed with Ray White, is also still on the market. The property passed in at auction in October last year and is now priced by negotiation. It previously had an asking price of $9.25m.
O’Connor, whose agency sold a renovated beachfront property on Oceanbeach Road in Mount Maunganui for a record-breaking $11m last year, says beachfront properties can take anywhere between four and six weeks to sell, or even longer depending on the uniqueness of the property, price expectation and what else is on the market.
Properties right on the waterfront do not come up for sale that often and are highly sought-after, mainly by homeowners.
“Location is key, and none better than beachfront, so if it is for people that want this address and have the money to renovate, then it is hard to beat.”
However, O’Connor says the high costs associated with building at the moment means new or recently renovated houses are popular.
Powers Realty principal Sandra Powers says properties in the top end of the market, priced over $3m, are still in demand and holding their prices, even if they are taking slightly longer to sell.
Those buyers are largely unaffected by interest rates, she says, and just want what they want.
“People know where they want to be for lifestyle reasons, and the Mount is still one of those places. No matter what the market does, there’s always demand for good properties in the Mount - on the beachfront, on the golf course, on the solid streets like Te Ngaio Road and Muricata Ave.”
Powers Realty is currently selling a 405sq m section at 18B Muricata Avenue and a bach on 7 Tay Street, which she says will be of interest to people who want to build their dream homes on sought-after streets.
Power says these development properties typically take a bit longer to sell, as they require people with vision because there is work involved.
Ray White Mount Maunganui and Papamoa business owner Greg Purcell says everything is taking longer to sell at the moment.
However, properties on the Golden Mile have the added bonus of having the scarcity factor due to the limited number of properties available, he adds.
“You can’t really replicate that – if you want to be in Pilot Bay, there’s your choice.”