A vacant Auckland CBD development site has sold for $6.9 million after lively bidding at auction, showcasing the enduring appeal of freehold land as interest rates remain low during the current economic crunch.
The property at 29-31 Anzac Ave was sold at Colliers International’s latest online auction on Wednesday, while Auckland remained under Level 3 lockdown restrictions.
Brokers from Colliers’ Auckland Investment Sales team fielded 42 phone bids from nine registered bidders before selling the property under the hammer.
Auckland Director Gareth Fraser says savvy buyers are still willing to invest despite a level of uncertainty returning to the economy.
“Investors are making the most of the ongoing low interest rate environment, which continues to create favourable conditions for borrowers.
“There’s a clear opportunity to land bank while awaiting the next development cycle, which could potentially deliver long-term capital gains for those buyers who are active in the market now.”
The Anzac Ave property was put up for sale by the first mortgagee after plans for a 16-level hotel didn’t proceed.
Earlier plans for an apartment development on the 757sq m site also didn’t proceed when the previous owner, Maritime Apartments, went into receivership.
“Freehold land in the heart of Auckland’s CBD is hard to come by, especially as a vacant development site. Investors are clearly banking on the future growth potential, while making the most of current lending conditions.”
The northeast-facing site is located on the western side of Anzac Ave, near the corner of Beach Road, offering good access to downtown amenity including Britomart and Commercial Bay.
Business City Centre zoning allows for intensive development of up to 50m in height, with a wide range of permitted uses including residential, short-stay accommodation, office, retail or a mix of these. The site was consented for a gross floor area of 7,122sq m.
The property is the fourth to sell under the hammer in Colliers’ auction room since Auckland’s return to Level 3 restrictions was announced.
Two Onehunga properties sold on Wednesday 19 August in a virtual auction, while a Mt Wellington property sold under the hammer a week earlier – only one hour before the lockdown came into force.
Fraser says these results highlight the strength of Colliers’ hybrid auction strategy, which allows bidders to participate either remotely or in the auction room.
“Using the market-leading Auctions Live platform, we are able to auction properties even if the Covid-19 alert level changes.
“This not only delivers results for our vendors, but transparency for buyers at a time of economic uncertainty.”