Sir John Key’s property developer son Max Key snaps up fire-damaged million-dollar dump in suburb he grew up in

Max Key has gone back to his roots and is back in the exclusive neighbourhood he grew up in — this time as a homeowner.

But Key’s new digs are a far cry from the expansive Parnell family home he lived in with his dad, former Prime Minister Sir John Key, and scream potential rather than palatial.

Max Key, or rather his company MTK Capital, now owns a small character cottage in Parnell.

Key told the Herald he managed to secure the property under valuation because it was a fire-damaged deceased estate.

“I know Parnell well because I grew up there and I have always been drawn to the more quaint streets like Alberon,” Key said.

“There is a lot of work to be done with this one and I’m going through the process now and talking to consultants and architects.

“I’m really excited by the potential of the property and what we can do there.”

Records show Key was able to secure the damaged weatherboard house for $1,355,000 — more than half a million dollars under the 2021 council CV of $1,875,000.

The run-down house sits on 253sq m of land and was sold for $1.35 million in September 2023. Photo / Jason Oxenham

The purchase price is close to the lower end of the OneRoof estimation of $1.38 million to $1.75 million.

Photos of the property show walls stripped back to Gib, a rusty roof, missing guttering, overgrown gardens and dilapidated fences.

Floor plans show a tiny kitchen at the rear of the property with a toilet off to the side.

Two of the rooms would delight fans of character homes, with original fireplaces intact, and the heritage overlay means the 1900 cottage is safe from the bulldozer.

Alberon St is steep and the section at No 7 is sloped, but gives the possibility to develop under the house. There is also attic space with access via stairs.

Key said he would take advantage of the sloped site to include off-street parking. The heritage overlay meant the facade of the cottage would remain, but gave more freedom to open the back of the house up to the sunny back garden.

Max Key with father John Key in Hawaii. Photo / Instagram

“There is a lot we can do to improve the house, add parking etc but still keep the heritage and the vintage of it,” he said.

“We are still very much planning it, but looking to start building later in the year.”

Key’s new purchase is packed with potential and if completely restored, could triple in value.

A similar-size and style property in nearby Elam St sold just months ago for $4.3m, with three parties competing for it at auction.

The location of Key’s new pad is ideal with a double grammar zone address and a short walk up to popular Parnell District School.

It is also within walking distance of Parnell Village and the train station.

In the sales blurb for the property, which sits on only 253sq m of land, Barfoot & Thompson agents Wendy Sadd and Michele Ballinger describe it as “a significant project” or “a rebuild”.

“It’s been many years since looking its best. However, there is something about this property, nestled on a quiet, leafy street, that will set your imagination flying,” the description reads.

The home can be configured into a two or three-bedroom home depending on whether a larger lounge is needed, and there is a large attic space up a flight of stairs “offering the potential for additional rooms should restoration be your choice”.

The street is mainly restored character cottages with a scattering of newer homes.

Max Key has already cut his teeth in property development with numerous do-ups and developments now under his belt.

He bought his first home in 2020, attending the auction with his parents and with his father bidding on his behalf.

Sir John Key won the auction and paid $1.4m for the Mt Albert house.

In 2022, Max and Sir John Key entered into a development co-venture with John and Michael Chow under their MTK Capital entity.

The Hong Kong-born brothers, best known for brothels and strip clubs, bought Stonewood Homes in 2016.

The new venture, Stonewood Key, had a target to raise about $100m, with projects underway in the eastern Auckland suburbs of Glen Innes, St Heliers, and Wai o Taiki Bay.

Not all of Key’s developments have gone as smoothly as others.

Key's development in Saint Michaels Ave in Point Chevalier. Photo / Jason Oxenham

In October 2022, MTK Capital was accused of “bringing down the character” of a leafy Point Chevalier street with delays to a building project creating an “eyesore”.

MTK Capital moved three bungalows onto the site in St Michaels Ave, but then delays because of Covid had them sit untouched for more than a year.

At the time a spokesman for Key’s company MTK Capital apologised and said he understood neighbours’ frustrations at delays.

MTK Capital owns the land, having paid just over $3m for it in 2020.

A spokesman said there were measures beyond the company’s control.

“We apologise for the delays and appreciate the frustration.”

The spokesman said MTK Capital then applied in early 2022 to change the development to “two high-quality homes”.

“They will be four-bedroom homes with swimming pools with a value of around $4m, which is more in keeping with the site,” the spokesman said.

This week a skip bin sat outside the property and the two character homes looked near completion.

Kirsty Wynn is an Auckland-based journalist with more than 20 years’ experience in New Zealand newsrooms. She has covered everything from crime and social issues to the property market, and has a current focus on consumer affairs.