Chinese investor sells Auckland apartment site in a fire sale! Bought for $7,500,000, now selling for less than half the price!

Auckland real estate agent James Law is looking for a buyer for the site at 46 Upper Queen St.

 

The site was originally intended for the Basilica Apartments project, with plans for 35 luxury apartments, two shops and 37 car parks.

Chinese developer CNSH Development originally bought it for NZ$7,500,000. The current asking price is “less than half the original purchase price”.

 

James Law says developer CNSH Development is offering the site on the fringe of the CBD for “urgent sale”. CNSH Development, owned by Chinese businessman Chenying Zhao, was incorporated in November 2017 and currently has two directors.

 

The site CNSH wants to sell covers around 816 square metres and is zoned for mixed use. It is within walking distance of the CBD, the University of Auckland, AUT and the Karangahape Road City Rail Link station, and is in the Auckland Grammar School zone.

James Law says industry professionals valued the land at NZ$4,310,000 in 2017. He revealed that the seller originally paid $7,500,000, and is now asking less than half the purchase price. “The seller is now in China and is selling at a substantial loss.”

 

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James Law says resource consent and building consent for 46 Upper Queen Street were approved in 2016, with plans for 35 luxury apartments, two shops and 37 car parks.

 

The entire building was designed by MollerArchitects in a minimalist style using concrete, steel and glass, inspired by the roses and crosses of the nearby St Benedict's Church.

 

 

However, the developer later terminated the purchase agreements with all apartment buyers. After the building consent for the apartment block lapsed in December 2018, the Chinese developer has now decided to exit the project and sell the development site at a substantial loss.

 

As Auckland's population continues to grow, only higher-density housing can resolve the challenge of more people and limited land. However, large apartment developments require substantial investment and far greater technical expertise than conventional standalone houses.

 

There is an overall shortage of construction workers capable of building apartments. In recent years, reports have periodically emerged of major Auckland apartment developments being delayed or even abandoned midway through.

 

Artist's impression of Auckland's landmark St James apartments

 

We recently reported on the discovery of cavities beneath the Alexandra Park apartment construction site. The development was supposed to be ready for residents in 2016, but remains unfinished. Auckland's landmark St James apartment project, meanwhile, collapsed at the end of 2016 after its funding dried up.

 

Buyers considering an apartment off the plans must do their homework and choose a developer with strong resources and capabilities.