Wynyard Quarter: Multi-million dollar apartments launched

Thursday, 7 March 2019

An illustration of Beaumont Apartments, stage two of a housing development in Auckland's Wynyard Quarter, by Willis Bond, where prices range from $635,000 to more than $5 million.

Leading developer Willis Bond is unconcerned about a flat Auckland housing market and tumbling Sydney prices as it launches an apartment development close to the waterfront with multi-million dollar price tags.

Willis Bond managing director Mark McGuinness said Australia was a boom bust market where oversupply was a problem but Auckland's had more equilibrium.

'The sheer volume of product and the commercial drivers over there are quite different from the Auckland market.'

Willis Bond is launching Beaumont Apartments, which is stage two of its housing development at 30 Madden Street, in the revitalised Wynyard Quarter on Auckland's waterfront.

Beaumont Apartments, which is stage two of the 30 Madden development, has a mix of 56 apartments, four maisonettes and three penthouses.

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Mark McGuinness, managing director of Willis Bond, said while the company had an exemption to sell units off the plans to overseas buyers most would be bought by Aucklanders.

The 63 units, townhouses and penthouses span from studios to four-bedroom penthouses, with sizes ranging from 45 square metres to 254sqm and prices ranging from $635,000 to more than $5 million.

Carparks cost an extra $100,000 and some $125,000.

Of the 90 residences in stage one, 81 had been sold and that included six to overseas buyers. Stage one had a similar price range to stage two.

The value of stage one once built would be about $150m and stage two about $100m.

An illustration of a penthouse apartment in stage one of the 30 Madden development.

Construction of stage one began in October 2018 and is due to be completed late 2020. A date to start stage two has not been confirmed.

Willis Bond has secured an exemption to the Overseas Investment Amendment Act 2018 which allows overseas buyers to buy off the plans.

'That said, very very few of these apartments will be sold offshore. Almost all of them or many of them will be sold to Aucklanders looking to move from where they are currently living.

'Frankly, we have deliberately not marketed them offshore because we want to create a community rather than a building with apartments just owned by investors.'

For an exemption the development must be multi-storey with at least 20 residential units that were not completed by August 22 2018 and were likely to be completed by August 22 2023, Overseas Investment Office information said.

McGuinness said about 10 per cent of stage two apartments had been sold soon after launch and that told the company that they were building what buyers wanted.

An illustration of townhouses in stage one of the 30 Madden housing development.

That was really good construction and a well-finished building and Willis Bond was focused on delivering that.

The residences have a Homestar 7 rating, which denotes a home with a lot more insulation, energy efficiency and comfort than an average home and more than required by the Building Code.

With regard to a flat housing market in Auckland, McGuinness said, 'It hasn't affected pricing.'

'At the moment we see the market much more at equilibrium.'

People were taking longer to make their minds up but were still buying.

'We welcome that process and we think it's to our advantage that people are doing their homework and making reasoned judgements and comparisons before buying at 30 Madden.'

Property was driven by population growth and there was no question Auckland would over time continue to grow.

'The point is we're targeting owner-occupiers, so for us the question is are we delivering good value for people who want to live in one of the apartments and we think we are.'

Wynyard Quarter was a whole new inner city suburb by the water for Aucklanders and a fantastic place to live, he said.

Buyers were also provided with estimates on what annual body corporate levies might be.

For a $635,000 unit the levy might be about $2500 a year, for a $2m unit about $6500 a year and for a $5m penthouse about $15,000.

The owner of the freehold land at 30 Madden was Auckland Council. McGuinness said it was leasehold land 'but not leasehold as you know it'.

It was pre-paid. Willis Bond had paid up front for a 125-year lease of the land.

'The one thing with 125-year leasehold was that after 125 years, if you're still around, you have to give it back to the council. I don't think many people will have that problem.'