Bidding at Dutch auction reaps reward for buyer

In one of the most conspicuous signs of the property market's downturn, a grand St Mary's Bay mansion has gone for about half its market valuation.

The two-level colonial weatherboard house with an adjoining section at 11 London St is valued by QV at $5.3 million.

But a buyer has just snapped it up for less than $2.65 million.

The house is above the motorway, with sweeping waterfront and harbour bridge views, sitting on a large site which has resource consent for two other dwellings.

Pene Milne, of Premium Real Estate in Herne Bay, staged a Dutch auction on the house where prices started high and then dropped.

Bidding started at $5 million and then dropped rapidly, sometimes in $500,000 stages, she said.

The calls stopped coming at $2.65 million.

Negotiations subsequently resulted in an unconditional sale.

To read the full NZ Herald article click here

Posted: 12 Dec 2008

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