Beachfront home bid misses $5.9m reserve

By Graham Skellern
A prime multimillion-dollar beachfront home just two doors from one that sold for a record $6 million has failed to sell at auction - a sign the top end of the property market has slowed.
Many of the wealthy residents living on the beachfront at Mount Maunganui crowded into an auction room late last week hoping to witness another big property sale on their golden mile.
A modern two-level home on a full-sized section at 29 Marine Parade was under the hammer - but the interested residents saw little action at the LJ Hooker auction.
There were two bidders but they didn't last long. After starting at $4 million, the bidding went to $4.3 million before it petered out and the property was passed in with the auctioneer saying he was looking for a bid of at least $5.9 million.
Eighteen months ago a Mediterranean-styled home two doors away sold for a record $6 million when the residential property market was still hurtling along.
The next door neighbour bought the beachfront property at 31 Marine Parade. It gave him the opportunity of joining the two properties and developing the 1500 sq m site with up to 15 apartments.
A developer made the final bid for 29 Marine Parade but it was well under the vendor's asking price - further indication that the market has slowed considerably.
John O'Donnell, principal of LJ Hooker Mount Maunganui, said his firm was still negotiating with one person over a possible sale.
The house, with clear views over the beach, has four bedrooms, two living areas, two decks and three bathrooms.
The 809 sq m property has a capital valuation of $2.815 million, including land of $2.305 million.
Mr O'Donnell said the auction attracted a big crowd.
"I think half of Marine Parade must have been there and they like to see what was happening to the market. It is certainly going through a period of adjustment."
There was one strike at the LJ Hooker auction, however.
The Anglican church house in Victoria Rd at Mount Maunganui was expected to fetch $2 million but it was sold to a developer for $1.7 million.
There were two bidders.
The property, owned by the Waiapu Board of Diocesan Trustees, had a capital valuation of $1.19 million with the land at $880,000.
The new owner can build up to eight apartments on the 800 sq m downtown Mount section.
The Bay of Plenty Times on Friday revealed real estate agents were starting to quit the industry as plummeting sales in the Tauranga residential property market hit a six-year low.
Sales in Mount Maunganui and Papamoa continued to grind along with 66 sales in January, after the volume began falling under the pivotal 100 mark in June last year.
There was no real pick-up from sales of 63 in December.
In Tauranga city, 90 houses changed hands.