The owner of a clifftop property in New Zealand's Northland region has encountered a significant setback in their efforts to sell what was once described as a 'dangerous dump'. This property, a four-bedroom concrete home, was deemed too hazardous to live in by the local council, leading to its sale in 2021. The current owner purchased it for $NZ804,500 with the intention of clearing and developing the site, but these plans have since changed, and the property has been on the market since 2024.
The original price expectations were $NZ799,000, but they dropped to $NZ599,000 before the property was withdrawn. It was then re-listed for an urgent public auction, with the agent emphasizing the owner's urgency to sell. However, the auction failed to attract a buyer, with the bidding starting at $NZ100,000 and only reaching $NZ130,000.
The listing clearly states the property's condition, noting that it is subject to a Wellington City Council Dangerous Building Notice and is being sold 'as is, where is' without any warranties regarding structural integrity or safety. The focus is on the land's potential for redevelopment, rebuild, or landbanking, which is a rare opportunity at this price point.
This situation raises several questions. Firstly, why is the property still considered dangerous despite the previous sale and the owner's initial plans? Secondly, what are the safety risks that prevent the property from being accessible to the public, even for inspections? These questions highlight the complexity of dealing with derelict properties and the challenges faced by both owners and local authorities in ensuring public safety and property development.
In my opinion, this case underscores the importance of thorough property inspections and the need for clear communication between owners, real estate agents, and local authorities. It also emphasizes the potential for landbanking, a strategy that can be beneficial in the right circumstances, especially when the value is in the land itself.
Looking ahead, it will be interesting to see if the owner revisits their plans for the property or if they decide to take a different approach to selling it. The current market conditions and the property's unique challenges may influence their next steps. This story serves as a reminder of the complexities involved in property development and the potential risks associated with derelict sites.
