Analysing House sales in Remuera, Auckland. 奥克兰Remuera区的房屋销售分析。
Last Week: We took a copy of the One-Roof Magazine on Properties available in the Auckland market. We were looking for single houses for sale in good residential suburbs on behalf of a friend returning from China. We found that there were more houses in Remuera for sale than in any other desirable suburbs in the Auckland City region. We decided on looking more closely at one property there that we considered well priced for the friend. To find out the range of values for that house should our friend wish to buy, we conduct research on the sale prices of similar properties in the Remuera area within the last six months. Our analyses of these similar properties sold are now described below.
This Week: Eight properties were analyzed and the results of our analyses are as follows:
(1) 51 Bell Road, Remuera, sold in February 2020 for $4,150,000.
Bedrooms: 5 Bathrooms: 4.5 Levels: 3 Land area: 670 m² Floor area: 240 m²
The decade of construction: 1910s Freehold Title.
Construction: External Walls: Timber Weather Board Roof: Tiles.
Unitary Plan: Zone 19 Residential - Single House Zone.
Government Valuation: $2,425,000. Land Value: $2,025,000. Value of Building and Improvements: $400,000.
Sale History: Listed in April 2019 - Not sold. Listed in August 2019 - Not sold.
| Analysis: | 51 Bell Road |
| Bedrooms: | 5 |
| Bathrooms: | 4.5 |
| No. of Levels: | 3 |
| Value Sold: | $4,150,000 |
| Date of Sale: | February 2020 |
| Land Area: (m2) | 670 |
| Value per m2 of Land Area: | $6,194 |
| Floor Area: (m2) | 240 |
| Value per m2 of Floor Area: | $17,292 |
| Plot Ratio, Bldg/Land: (%) | 35.82% |
| The Decade of Construction: | 1910 |
| Modernisation/Renovation | not obvious |
| Government Value (GV) 2017: | $2,425,000 |
| GV’s Land Value: | $2,025,000 |
| GV’s Building Value: | $400,000 |
| Building/Land Value Ratio: (%) | 19.75% |
| GV’s Land Value per m2: | $3,022 |
| Estimated Building (New): | $1,114,925 |
| Degree of Depreciation 2017: (%) | 64.12% |
| Unitary Plan: | Single House |
| Sale Price breakdown: Land Value | $3,465,464 |
| Sale Price breakdown: Building Value: | $684,536 |
| Total Sale Price: | $4,150,000 |
| Estimated Gross Rental per week: | $3,340 |
| Yield: | 2.26% |
(2) 93 Lucerne Road, Remuera, sold in September 2019 for $3,700,000.
Bedrooms: 4 Bathrooms: 4 Land area: 1,011 m² Floor area: 369 m²
The decade of construction: 2000s Freehold Title.
Construction: External Walls: Roughcast Plaster Roof: Tiles.
Unitary Plan: Zone 18 Residential - Mixed Housing Suburban Zone
Government Valuation: $3,325,000. Land Value: $2,125,000. Value of Building and Improvements: $1,200,000.
Sale History: Sold in May 2017 for $3,550,000. Sold recently in September 2019 for $3,700,000.
| Analysis | 93 Lucerne Road |
| Bedrooms: | 4 |
| Bathrooms: | 4 |
| No. of Levels: | 2 |
| Value Sold: | $3,700,000 |
| Date of Sale: | September 2019 |
| Land Area: (m2) | 1,011 |
| Value per m2 of Land Area: | $3,660 |
| Floor Area: (m2) | 369 |
| Value per m2 of Floor Area: | $10,027 |
| Plot Ratio, Bldg/Land: (%) | 36.50% |
| The Decade of Construction: | 2000 |
| Modernisation/Renovation | slightly renovated +- 5 years |
| Government Value (GV) 2017: | $3,325,000 |
| GV’s Land Value: | $2,125,000 |
| GV’s Building Value: | $1,200,000 |
| Building/Land Value Ratio: (%) | 56.47% |
| GV’s Land Value per m2: | $2,102 |
| Estimated Building (New): | $1,568,250 |
| Degree of Depreciation 2017: (%) | 23.48% |
| Unitary Plan: | Mixed Housing |
| Sale Price breakdown: Land Value | $2,364,662 |
| Sale Price breakdown: Building Value: | $1,335,338 |
| Total Sale Price: | $3,700,000 |
| Estimated Gross Rental per week: | $3,200 |
| Yield: | 2.16% |
(3) 103 Lucerne Road, Remuera, sold for 2,825,000 in October 2019.
Bedrooms: 4 Bathrooms: 2 Levels: 2
Land Area: 1,012 m2 Building Floor Area: 339 m2 The decade of construction: 1950s Freehold Title.
Construction: External Walls: Timber Weather Boards Roof: Tiles.
Unitary Plan: Zone 18 Residential - Mixed Housing Suburban Zone.
Government Valuation: $3,250,000. Land Value: $2,675,000. Value of Building and Improvements: $575,000.
| Analysis | 103 Lucerne Road |
| Bedrooms: | 4 |
| Bathrooms: | 2 |
| No. of Levels: | 2 |
| Value Sold: | $3,285,000 |
| Date of Sale: | October 2019 |
| Land Area: (m2) | 1,012 |
| Value per m2 of Land Area: | $3,246 |
| Floor Area: (m2) | 339 |
| Value per m2 of Floor Area: | $9,690 |
| Plot Ratio, Bldg/Land: (%) | 33.50% |
| The Decade of Construction: | 1950 |
| Modernisation/Renovation | not obvious |
| Government Value (GV) 2017: | $3,250,000 |
| GV’s Land Value: | $2,675,000 |
| GV’s Building Value: | $575,000 |
| Building/Land Value Ratio: (%) | 21.50% |
| GV’s Land Value per m2: | $2,643 |
| Estimated Building (New): | $825,308 |
| Degree of Depreciation 2017: (%) | 30.33% |
| Unitary Plan: | Mixed Housing |
| Sale Price breakdown: Land Value | $2,703,808 |
| Sale Price breakdown: Building Value: | $581,192 |
| Total Sale Price: | $3,285,000 |
| Estimated Gross Rental per week: | $2 |
| Yield: | 1.96% |
(4) 36a Ranui Road, Remuera, sold for $2.370,000 in November 2019.
Bedrooms: 4 Bathrooms: 2 Levels: 2 Land Area: 574 m2 Building Floor Area: 240 m2 The decade of construction: 1920s Freehold Title.
Construction: External Walls: Timber Weather Boards Roof: Iron.
Unitary Plan: Zone 18 Residential - Mixed Housing Suburban Zone.
Government Valuation: $2,625,000. Land Value: $2,175,000. Value of Building and Improvements: $450,000.
| Analysis | 36a Ranui Road |
| Bedrooms: | 4 |
| Bathrooms: | 2 |
| No. of Levels: | 2 |
| Value Sold: | $2,370,000 |
| Date of Sale: | November 2019 |
| Land Area: (m2) | 574 |
| Value per m2 of Land Area: | $4,129 |
| Floor Area: (m2) | 240 |
| Value per m2 of Floor Area: | $9,875 |
| Plot Ratio, Bldg/Land: (%) | 41.81% |
| The Decade of Construction: | 1920 |
| Modernisation/Renovation | no |
| Government Value (GV) 2017: | $2,625,000 |
| GV’s Land Value: | $2,175,000 |
| GV’s Building Value: | $450,000 |
| Building/Land Value Ratio: (%) | 20.69% |
| GV’s Land Value per m2: | $3,789 |
| Estimated Building (New): | $842,300 |
| Degree of Depreciation 2017: (%) | 46.57% |
| Unitary Plan: | Mixed Housing |
| Sale Price breakdown: Land Value | $1,963,714 |
| Sale Price breakdown: Building Value: | $406,286 |
| Total Sale Price: | $2,370,000 |
| Estimated Gross Rental per week: | $2,300 |
| Yield: | 2.61% |
(5) 23 Shore Road, Remuera, sold in December 2019 for $1,456,000.
Bedrooms: 4 Bathrooms: 2 Land area: 330 m² Floor area: 197 m²
The house is constructed in the 1990s. External Walls are of timber and the tiles of iron. It is on Freehold cross leased title and the Unitary Plan shows that it is in Zone 18 Residential - Mixed Housing Suburban Zone.
Government Value for Rating: $1,550,000. Land Value: $1,140,000. Building Value: $410,000.
| Analysis | 23 Shore Road |
| Bedrooms: | 4 |
| Bathrooms: | 2 |
| No. of Levels: | 3 |
| Value Sold: | $1,456,000 |
| Date of Sale: | December 2019 |
| Land Area: (m2) | 330 |
| Value per m2 of Land Area: | $4,412 |
| Floor Area: (m2) | 197 |
| Value per m2 of Floor Area: | $7,391 |
| Plot Ratio, Bldg/Land: (%) | 59.70% |
| The Decade of Construction: | 1990 |
| Modernisation/Renovation | not obvious |
| Government Value (GV) 2017: | $1,550,000 |
| GV’s Land Value: | $1,140,000 |
| GV’s Building Value: | $410,000 |
| Building/Land Value Ratio: (%) | 35.96% |
| GV’s Land Value per m2: | $3,455 |
| Estimated Building (New): | $608,432 |
| Degree of Depreciation 2017: (%) | 32.61% |
| Unitary Plan: | Mixed Housing |
| Sale Price breakdown: Land Value | $1,070,865 |
| Sale Price breakdown: Building Value: | $385,135 |
| Total Sale Price: | $1,456,000 |
| Estimated Gross Rental per week: | $1,200 |
| Yield: | 2.28% |
(6) 30 Upland Road, Remuera, sold for $6,500,000 in September 2019.
This is an old house on a large piece of land. It has been renovated internally some ten years ago. There are two levels in the building, the second level built into the loft of the roof space.
| Analysis | 30 Upland Road |
| Bedrooms: | 4 |
| Bathrooms: | 3 |
| No. of Levels: | 2 |
| Value Sold: | $6,500,000 |
| Date of Sale: | December 2019 |
| Land Area: (m2) | 2225 |
| Value per m2 of Land Area: | $2,921 |
| Floor Area: (m2) | 298 |
| Value per m2 of Floor Area: | $21,812 |
| Plot Ratio, Bldg/Land: (%) | 13.39% |
| The Decade of Construction: | 1940 |
| Modernisation/Renovation | internally redecorated |
| Government Value (GV) 2017: | $7,200,000 |
| GV’s Land Value: | $5,900,000 |
| GV’s Building Value: | $1,300,000 |
| Building/Land Value Ratio: (%) | 22.03% |
| GV’s Land Value per m2: | $2,652 |
| Estimated Building (New): | $1,668,800 |
| Degree of Depreciation 2017: (%) | 22.10% |
| Unitary Plan: | Mixed Housing |
| Sale Price breakdown: Land Value | $5,326,389 |
| Sale Price breakdown: Building Value: | $1,173,611 |
| Total Sale Price: | $6,500,000 |
| Estimated Gross Rental per week: | $4,500 |
| Yield: | 2.13% |
(7) 52 Upland Road, Remuera, sold in November 2019 for $2,140,000.
Bedrooms: 4 Bathrooms: 2 Land area: 488 m² Floor area: 215 m²
Construction: External Walls: Concrete Roof: Iron
Condition: External Walls: Average Roof: Average
Unitary Plan Zone: 18 Residential - Mixed Housing Suburban Zone
| Analysis | 52 Upland Road |
| Bedrooms: | 4 |
| Bathrooms: | 2 |
| No. of Levels: | 1 |
| Value Sold: | $2,140,000 |
| Date of Sale: | December 2019 |
| Land Area: (m2) | 488 |
| Value per m2 of Land Area: | $4,385 |
| Floor Area: (m2) | 215 |
| Value per m2 of Floor Area: | $9,953 |
| Plot Ratio, Bldg/Land: (%) | 44.06% |
| The Decade of Construction: | 1920 |
| Modernisation/Renovation | redecorated some years back |
| Government Value (GV) 2017: | $2,125,000 |
| GV’s Land Value: | $1,775,000 |
| GV’s Building Value: | $350,000 |
| Building/Land Value Ratio: (%) | 19.72% |
| GV’s Land Value per m2: | $3,637 |
| Estimated Building (New): | $700,900 |
| Degree of Depreciation 2017: (%) | 50.06% |
| Unitary Plan: | Mixed Housing |
| Sale Price breakdown: Land Value | $1,878,800 |
| Sale Price breakdown: Building Value: | $261,200 |
| Total Sale Price: | $2,140,000 |
| Estimated Gross Rental per week: | $1,400 |
| Yield: | 1.93% |
(8) 150 Upland Road, Remuera, sold for $2,285,000 in November 2019.
Bedrooms: 3 Bathrooms: 2 Level: 1 Land Area: 732 m2.
Building Floor Area: 135 m2. Plot Ratio: 18.44%
| Analysis | 150 Upland Road |
| Bedrooms: | 3 |
| Bathrooms: | 2 |
| No. of Levels: | 1 |
| Value Sold: | $2,285,000 |
| Date of Sale: | November 2019 |
| Land Area: (m2) | 732 |
| Value per m2 of Land Area: | $3,122 |
| Floor Area: (m2) | 135 |
| Value per m2 of Floor Area: | $16,926 |
| Plot Ratio, Bldg/Land: (%) | 18.44% |
| The Decade of Construction: | 1920 |
| Modernisation/Renovation | redecorated some years back |
| Government Value (GV) 2017: | $2,200,000 |
| GV’s Land Value: | $1,875,000 |
| GV’s Building Value: | $325,000 |
| Building/Land Value Ratio: (%) | 17.33% |
| GV’s Land Value per m2: | $2,561 |
| Estimated Building (New): | $519,750 |
| Degree of Depreciation 2017: (%) | 37.47% |
| Unitary Plan: | Mixed Housing |
| Sale Price breakdown: Land Value | $2,013,000 |
| Sale Price breakdown: Building Value: | $272,000 |
| Total Sale Price: | $2,285,000 |
| Estimated Gross Rental per week: | $1,600 |
| Yield: | 2.14% |
Let us remind ourselves that the purpose of this analysis is to provide us with the necessary tools to predict the likely sale price of another similar house in that same area.
If we now print out the entire eight cases above in one single sheet, we can see the following conclusions.
Conclusion # 1: The base for comparison is the sale price per m2 of the land area. In other words, in the unlikely event that we do not have any other data to a house to be valued other than the land area, the estimated value can be within the range of the eight properties analyzed - from $2,921 per m2 for 52 Upland Road to the high $6,194 per m2 for 51 Bell Road. If we eliminate the lowest and the highest price, the range of values per m2 clusters in the $4,000. This then provides us the first estimate from the Market Comparison Approach to this valuation exercise.
Conclusion # 2: The plot ratio (that is the building area divided by the land area) is an indication of how dense the development is. For the eight houses analyzed, it is interesting to note that those houses with plot ratios of 40% or higher are worth around $4,000 per m2 of the land while those with lower ratios are worth closer to the $3,000 per m2 of the land.
Conclusion # 3: When it comes to the year of construction, it is not true that the older the house, the lower the value. Most older houses in the Remuera area have been renovated and redecorated internally and this factor has to be taken into consideration when valuing a property in Remuera.
Conclusion # 4: When valuing by the Cost Approach, the allowance for depreciation for the building costs is important. This depreciation factor is also dependent on the maintenance and care of the house. It is also dependent on any renovation work done to the house.
Conclusion # 5: For the Investment Approach, the yield to investors in these eight cases is around the 2.00% mark. In other words, once we estimate the net annual income from a house to be valued, this yield will provide us a tool to calculate the investment value of that house.
Finally, we like to make a cautionary remark. The above observations and conclusions are those that are of relevance as of last week’s date, 17th March 2020. Much has happened to the world since then. Notably, the Coronavirus Pandemic has now been predicted to have a tremendous effect on the New Zealand economy. We are heading towards a recession and the housing market will be affected. Our reservation here is that any analysis done is historical and there needs to be adjustments done for the timing of the valuation.
For now, It is likely that house prices will fall due to the current conditions. But, house prices in areas like Remuera, St. Johns, and the adjoining neighborhoods will, as always, fall the least and will rebound back again when this coronavirus is blown over.
A Pastor has the last words. “This is God’s reminder to us that He rules on earth as it is in Heaven.” So, we end here by encouraging you to pray for the health and safety of one other.
[Note: A Chinese version of this article will be posted soon.]
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