Home in 'tough area' tipped to sell for $1m plus

By Ben Hill

NZ Herald·

8 Apr, 2016 05:00 PM3 mins to read

Agent says house on 1700m section surrounded by Housing NZ properties likely to appeal to investor

A property surrounded by state houses in what the real estate agent describes as the North Shore's "toughest neighbourhood" is up for sale and it's expected to fetch more than $1 million.

The home at 20 Fraser Ave in Northcote is encircled by 15 Housing New Zealand properties. It has a capital value of $1 million.

Bayleys Real Estate agent Jo Glancy expects the buyer to knock down the four-bedroom house on the 1702sqm section, which lies in a Special Housing Area.

"The value is in the land, not the house," she said.

"We believe the buyer will be an investor, somebody who's looking to develop or land bank it in the future."

Ms Glancy said the area around the site for sale has a "colourful" reputation.

"It's a neighbourhood that's certainly changed over the last three to four years.

"The majority of homes are Housing New Zealand ... it's just been known as a tough neighbourhood.

"It's had some colourful characters and all the things that come along with being a low-income area. I can't comment on if it was a high crime area, it was an area where quite a bit of drugs were involved a while back.

"When areas are rough they all tend to have the same issues, don't they, to be fair."

Northcote is categorised as a two out of 10 on the New Zealand Deprivation Index, with 10 meaning an area is among the most deprived in the country.

A Housing New Zealand spokeswoman said "at this stage" they had no immediate plans regarding sale of their properties around 20 Fraser Ave.

There are no definite projections for what the property may eventually sell for, but Ms Glancy expects it to exceed its CV.

"With no comparable sales on the property we have no idea, that's why the client decided to take it to tender," she said.

"The CV is $1 million, most homes in those areas are selling above the CV, and with this particular one the future potential opens up a whole bracket of what people can do potentially with the land."

GV of 20 Fraser Avenue, Northcote. House for sale. Photo / Michael Craig

The land is currently zoned for terraced housing and apartments and under the Proposed Auckland Unitary Plan it can be subdivided, pending Auckland Council approval.

The house was built in the 1960s, and has been owned by the same family for more than 50 years.

Jane Pou is selling the house on behalf of her mother Mary, who owned it with her husband Percy, who is now deceased.

She said despite the sale being a "loss", her 87-year-old mum is keeping a positive outlook.

"It is hard for us, but mum's a real matriarch. She just said 'Think of things brighter and better', and we'll have all the memories.

"It is a bit of a loss for us, and it brings me a bit of a tear myself."

Percy spent 43 years in the Royal New Zealand Navy and was a kaumatua before his death.

Jane said her parents took disadvantaged children into their home and looked after them as if they were their own.

"It's been a family home to multitudes of people. Mum and dad only had four kids but they've brought up about 18 others."

Jane said her mother will live with her in Papamoa after the sale.