Onwards and upwards

Another busy session at Barfoot & Thompson's Auction Rooms. Photo/Supplied

If ever there is evidence of Auckland's property markets springing back into a growth phase it is on the auction room floor.

Auction clearance rates have soared as hundreds of Auckland homes have been sold under the auctioneer's hammer in the past month. Waves of potential buyers move through the auction rooms, at times filling them to the point where there is standing-room only.

The full day's auction results reinforced the basic tenet of real estate: that location and proximity to essential services such as shops and public transport, contribute to a successful sales outcome.

Homes in areas such as Glen Innes, Panmure and Mt Wellington in the eastern suburbs, and Sunnynook on the North Shore, sold on the day at good prices.

They are close to public transport services, including more frequent and comfortable electric trains running through or near Glen Innes, Panmure and Mt Wellington. On the North Shore, properties relatively close to the frequent, quick and convenient Northern Express service to the central city fetched good prices.

There were 54 properties listed for auction during what turned out to be a marathon Wednesday auction at Barfoot and Thompson's Shortland St auction rooms.

Of the 54, 39 were either sold on or before auction day. Only two properties failed to attract any bids and 13 were passed-in because they failed to reach their reserve.

The clearance rate was significantly higher than at similar auctions this year, and signals a return to the sales levels achieved just over a year ago, before the Reserve Bank introduced mortgage restrictions and began hiking interest rates in an effort to rein in property price increases.

There were so many bids on properties, the auction timetable ran around 40 minutes behind schedule at times during the afternoon, with auctioneer Marian Tolich thanking bidders for their patience and explaining helpfully that "the bids just keep coming".

There were few complaints from most of the day's vendors, happy to see their properties snapped up by eager buyers who know that in this market they must act decisively to secure a property. Well-presented properties in the Grammar-zones in legacy suburbs such as Epsom and Remuera continue to attract good prices, but much of the fastest auction action this day involved properties in outer suburbs such as Mt Wellington.

An example was a 90 sqm three-bedroom home on a fenced section at 25 Camp Rd, Mt Wellington. The 1950s weatherboard home has polished timber floors, open-plan living, and a single garage and carport. Marketed by Nicholas Lyus and Julia Nah from Barfoot's Remuera office, the property was promoted as being close to shops (including Sylvia Park mall) and public transport, along with easy motorway access.

The property sold in September 2006 for $302,000 and in April for $310,000, although its 2011 capital value was $370,000. This day the property attracted spirited bidding from $400,000, and quickly reached the reserve of $625,000. From here bidding increased in $1000 steps to $630,000. Serious buyers then tried to burn-off their competition by trading quick-fire $5000 bids, increasing the price until it sold for $730,000.

One of the fastest lots to sell was a four-bedroom brick and- tile home at 683 B Richardson Rd, Mt Roskill. Marketed by Sameer Rajan at Barfoot's Mt Roskill branch, the 7-year old home with a modern kitchen was promoted as being in a convenient location, close to amenities.

The property was last sold in April 2007, for $570,000, compared with the 2005 capital valuation of $450,000. This day bidding began at $700,000, and only six bids later the property was sold for $800,000. In another price league, an elevated four-bedroom family home on a large section at 6 Pickwick Pde in Mellons Bay, became one of the day's most keenly contested properties.

Promoted by Kanta Lala from Barfoot's Remuera office, the house is close to schools and had been in the same family for four decades. Auctioneer Murray Smith took an opening bid of $700,000, and bidding increased in $20,000 steps to $880,000. Serious bidders boosted the price above the $1.11m reserve, and two Asian couples sitting in the front row of the auction room then began an intense back-and-forth volley of counter bids, reaching the eventual sale price of $1.265m.

The home had a 2011 capital valuation of just $650,000. There was strong interest also in a distinctive one-level brick-and-tile home at 46 Fernleigh Ave, Epsom. The home, with a modern kitchen was on the market for the first time for 47 years, and is close to shops and public transport.

It was marketed by Gerry and Jude Philpott from Barfoot and Thompson's Mt Eden office, and was described as "a local icon". Bidding began at $850,000, and quickly reached its reserve of $1.04m. Thirty-two spirited bids later the home was sold for $1,108,000. This compares with the 2011 capital value of $650,000.

Another indication of the continued strength of the Auckland markets was the number of properties that either sold before reaching the auction room floor (10 properties) or else had attracted so much interest that the auction dates had been brought forward.

Six properties were in this category, where vendors had received offers at their reserve, but were testing whether the market was prepared to pay more at auction. Among them was a renovated family home with a modern kitchen, polished floors, decking and a single car port at 17 Sequoia Place, in Sunnynook on the North Shore.

The property was marketed by Robert Zhang and Tessa Kang from Barfoot's Browns Bay branch, and described as being in a central location, close to schools, parks and shops. Public transport links, especially the Northern Bus way, were once again cited as a positive feature of the location. The property had previously sold for $390,000 in 2005.

Image 1 of 4: $970,000 17 Sequoia Pl

Bidding began at the reserve price of $945,000, and bidders pushed the final sale price up a further $25,000 in quick-fire bids to reach a sales price of $970,000. The vendors of another North Shore property, at 9 Long Bay Drive in Torbay, also had a lucrative day at the auctions. The three-bedroom home is a short walk to the beach, park and public transport, is close to schools, and was marketed by Susana Perez and Libby Liang from Barfoot's Torbay office.

The home sold for $711,500, which was also $25,000 above the reserve price. The property last sold in 2002 for just $257,500, and had a 2011 capital value of $445,000. There was an even better outcome for the vendors of a four-bedroom home at 75 Avondale Rd, Avondale, which sold for $750,000, $90,000 more than the reserve price. A character bungalow at 13 Nikau St, New Lynn, sold under the hammer for $639,000, or $49,000 above the reserve price, and a three-bedroom home at 7 Woodstock Rd, Forrest Hill, Takapuna, sold for $870,000 - $80,000 more than the auction reserve price.

A sixth property, at 91 Range view Rd, Sunnyvale, sold at the reserve price of $640,000. Although there were some disappointed vendors whose properties failed to either attract even one bid, or else failed to reach their reserve, agents were upbeat about the prospects of after-auction negotiations in most cases.

If this large-scale auction session was any indicator of the state of the market, it seems unlikely residential prices across much of Auckland have peaked. With the Reserve Bank indicating interest rates are in a holding pattern, and Auckland's chronic shortage of properties lacking a quick-fix solution, no wonder around half of all properties sold by the region's largest real estate agency, are sold at auction.