Auckland properties sell under the hammer despite Level 3 restrictions

Immaculate Onehunga industrial for auction will suit owneroccupiers or investors  hero

Buyers have been undeterred by Auckland’s return to Level 3 restrictions, with three commercial properties selling under the hammer in Colliers International’s auction room in the last week.

Two properties in Onehunga sold on Wednesday in a virtual auction, while a property in Mt Wellington sold the week prior – less than an hour before the lockdown came into force.

Gareth Fraser, Auckland Director of Investment Sales at Colliers, says investors and occupiers continue to have confidence in the market’s fundamentals.

“While Auckland’s return to Level 3 has brought some uncertainty, these auction results show there’s still strong investor appetite for quality commercial property offerings.

“Savvy investors are clearly looking beyond the short term and are banking on long-term gains and underlying land values.

“Property is often seen as a safe haven in times of economic disruption, and the current situation is no different, as these auction results attest.”

A mixed-use character property at 231-233 Onehunga Mall was the first of two properties to sell on Wednesday in Colliers’ virtual auction room.

It sold for $930,000, at a yield of 6.57 per cent, after attracting 14 bids.

Located on a 245sq m freehold site on Onehunga’s main retail strip, the property comprises two ground floor retail units, occupied by a sushi shop and a fish and chip shop, plus a two-bedroom flat upstairs and storage basement below.

The sale was brokered by Onehunga property specialists Gawan Bakshi and Ned Gow of Colliers’ Auckland Investment Sales team.

The second sale under the hammer on Wednesday was a premium modern industrial property at 28-30 Miami Parade, Onehunga.

It sold for $3.2 million with vacant possession, plus short-term holding income for the n ew owner.

Completed in 2016, the property provides 1,195sq m of functional space including a high-stud warehouse, large canopy, secure yard, two-level office and a well-presented executive suite on a 1,113sq m freehold site.

The sale was brokered by Onehunga property specialists Ben Cockram and Hamish West of Colliers’ Industrial team.

Bidders also kept active in the auction room ahead of the current lockdown, with a Mt Wellington industrial property at 178 Marua Road selling under the hammer for $3,335,000.

The auction was held at 11am on Wednesday 12 August – an hour before Auckland’s Level 3 restrictions came into force.

Bakshi, who brokered the sale with Cockram and West, says it was an exceptional result – especially given the timing.

“The property sold significantly above the reserve price after receiving bids from seven parties, including four bidders in the room and three on the telephone,” says Bakshi.

“The eventual purchaser was locally based but bid over the phone – which shows the usefulness of our ‘hybrid’ auction model, allowing bidders to participate in the room or online.”

The Colliers auction room also had a successful run in mid-July, with four properties selling under the hammer and a fifth selling prior.

The sales included:

Fraser says auctions are useful in times of uncertainty because they provide a transparent way for both vendors and purchasers to ascertain what market values are.

“Our market-leading hybrid auction capability, using the AuctionsLive platform, allows us to deliver confidence for our vendors and bidders.

“The strategy is clearly producing results, as our auctions over the last two months have attested.”


Related Experts

Gareth Fraser

Auckland Director - Investment Sales

Auckland CBD

Gareth leads Colliers International's Investment Sales team. The team operates across the entire Auckland market from four strategic locations; CBD (including city fringe), South Auckland (based in Highbrook), West Auckland (based in North West Shopping Centre) and North Shore (based in Takapuna).

This is a large team of brokers and support staff focussed on providing solutions to owners, investors, developers, owner-occupiers and tenants. It features a specialised site sales team focussed on residential land and development opportunites. Investment Sales also includes the syndication division, offerring proportionate ownership opportunities to investors on behalf of clients.

Gareth is also on the Executive Team for Colliers in New Zealand.

View expert

Gawan Bakshi

Broker | Investment Sales

Auckland CBD

Gawan is a solutions-focused and proactive member of the Colliers International Investment Sales team, based in Auckland CBD. He specialises in scouting and matching suitable investment opportunities for individual property owners, family trusts, high profile national property and retail groups. He is the area expert for Mount Roskill, Three Kings, Hillsborough, Onehunga, Mount Albert, and Sandringham with extensive knowledge and local information for each suburb.

Gawan’s Bachelors of Commerce and Bachelors of Property from University of Auckland have equipped him with the technical expertise required to identify the benefits and risks associated with each property and provide reliable and professional advice to his clients. He goes to length to ensure his clients have access to all the relevant information and are able to overcome challenges with his advice, before making a final decision.

Gawan’s thorough understanding of property investment and market conditions, paired with his proficient localised knowledge means he is able to discern every deal carefully on a case by case basis to achieve the best possible outcome for his clients.

Gawan speaks fluent Hindi and Punjabi and understands Gujurati and Urdu, making him an important member of the team with the ability to access and communicate with this growing market audience.

View expert

Ned Gow

Broker

Auckland CBD

Ned forms part of the Colliers Investment Sales team operating out of the Auckland CBD office. His expertise range from his early experience in the industrial sector and current involvement in the commercial market where retail and office sales are his main focus. Ned specialises on Auckland’s competitive fringe market where he’s had major involvements in record setting transactions, selling over $25 million worth of property since starting in 2018.

Recent Sales:

212 Jervois Road, Herne Bay - $1,950,000 - 4.07% yield

158 Onehunga Mall - $4,250,000

292 Onehunga Mall - 5.50%

300 Onehunga Mall - $1,720,000 - $2,700m² land rate

191 Onehunga Mall - $3,420,000 - 4.00%

75 Ellice Road, Wairau Valley - $2,900,000 - 5.80%

19 Busby Street, Blockhouse Bay - $1,445,000 - 5.82%

758 Dominion Road, Mt Eden - $1,227,000 - 5.79%

274 Dominion Road, Mt Eden - $2,625,000 - 4.00%

575-579 Sandringham Road - $1,800,000 - 4.00%

134 Onehunga Mall - $1,460,000

176 Dominion Road - $1,443,000

28-36 Wellesley Street - $1,250,000 - 5.44%

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Ben Cockram

Associate Director | Industrial

Auckland South

I am an industrial broker focussing predominantly, but not exclusively, on industrial sales and leasing in the Penrose, Onehunga and Mt Wellington areas.
Since commencing brokerage in September 2014, I have been involved in 104 leasing transactions and 89 sales. Having leased and sold buildings of all sizes in Auckland I have vast experience in all areas of Auckland's industrial market. 

In 2018 I was made an Associate Director of Colliers International NZ. 

As of April 2020;

Total sales transactions - 96
Total sales value              -  $239,589,000

Total leasing transactions - 104
Total sqm leased                   -  111,544m²

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Hamish West

Director | Industrial

Auckland South

With more than twelve years of experience in the commercial and industrial property sector, Hamish has been involved in a significant number of industrial property projects in Auckland and across New Zealand. During this time he has been responsible for the sale of more than $1.4B worth of industrial assets, in addition to providing leasing and design build solutions totalling more than 660,000m² for a range of major local & international occupiers.

Career Success

Hamish has proven to be a consistent and highly effective broker and in 2012 & 2015 was awarded with the Colliers National MVP Award for Brokerage Excellence, and 2015 saw him achieve the ranking of 6th highest revenue earner in Colliers nationally.

Market Specialisation

Hamish specialises in the sale and leasing of high value assets in the South Auckland Property market and has been involved in many projects including:

  • Sale and leaseback transactions
  • Tenanted Investment sales
  • Receivership sales
  • Vacant possession sales
  • Development property sales
  • Land sales
  • Vacant building leasing
  • Design build leasing
  • Tenant property sourcing
  • Purchaser property sourcing

Hamish has done a significant portion of his work with both private clients and corporate clients including Goodman, PFI, Broadway Developments, Southborne Holdings, Stride, Kiwi Income, Auckland Airport, Norak Properties, JKGL Group, Samson Corporation, Southpark Corporation, Quadrant, Location Group, Argosy, Windward Properties, and Depot Investments to name a few.

Recent occupiers include Bunnings, GPC (Repco), GUD, Ricoh, Ideal Electrical, Crown, Sirva, Wedderburn, GEA Process Engineering, Delmaine, Siemens, Hydraulink, Verifone, Sistema, Tyco, Bunnings, Fletchers, PMA Global, Compac Sorting Equipment, and many other SME businesses.

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