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$8.1m home seen as rogue in challenging market

Although home owners can draw optimism from the $8 million-plus sale of an Auckland mansion, experts in the real estate industry say the market is still sluggish.

The $8.1 million sale of the 700sq m North Shore home is almost certainly the biggest sale so far this year.

 It is understood to have been sold by private treaty. 

Homeowners and Buyer’s Association president John Gray told NBR ONLINE such a sale was rare and did not reflect the difficult market, where there is a lack of "quality listings".

“From what we have observed within the upper brackets, the $3 million-plus homes have been sluggish.

“Its importance has been overstated. It is one isolated sale in the very upper bracket of the Auckland market."

Options at the upper end are scarce at presentand many listed homes are plagued with issues such as leaky home syndrome.

“There’s no doubting the year to come will be challenging. There is a lack of quality listings on the market.”

Real Estate Institute chief executive Helen O'Sullivan agrees the home is an outlier.

“While the Auckland property market is picking up and we are seeing price increases, this is at the remarkable end of the spectrum.”

The home at 8 Minnehaha Ave, Takapuna, was last sold in 2011 for $5.67m but according to its listing has since been renovated. Its capital value is $5.6 million.

Mr Gray says it is wrong to speculate vendors Gary and Patricia Holden had made a profit.

“There’s no real visibility as to the extent of the renovation. They may have invested very heavily.”

He says it is positive to see the market reward investment in energy efficiency –  the home has 90 solar panels which heat the American oak timber and marble floors.

The solid concrete home has a private path down to nearby Thorne beach, its own swimming pool, gym, office and bocce court.

Precision principal Tom Kane, whose agency sold the home, declined to comment on the sale.

vyoung@nbr.co.nz

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