Waterfront prices squeeze out bargain hunters

Aucklanders looking for bargain waterfront properties in the north were disappointed when steep prices were paid at an auction last weekend.

Dr Nick Cooper of Auckland said he had been searching for a waterfront property for some time.

He jumped at the chance to investigate buying at Marsden Cove, a waterways project under construction and similar to Pauanui in the Coromandel.

"I'm looking for somewhere I can tie up the boat and go out fishing," said Dr Cooper, who had expected Marsden Cove sections to sell for a maximum of $700,000.

But instead the on-site auction of 100 sections last weekend resulted in one of the two best sites selling for $1,700,000 - and the other climbing even higher, to $1,705,000.

"No one could believe it," Dr Cooper said.

The joint venture development between Northland Port Corporation and Hopper Developments will have 700 residential sections and 350 with canal frontages.

A tourist-oriented marine retail centre and a 250-berth marina are also planned.

The development could take 10 years to build and generate about $350 million for the joint-venture partners.

Marsden Cove director and project manager Evans Young said $29 million was paid for 52 sites at Marsden Cove and the remaining sites are being sold by Hoppers.

Two-thirds of the bidders were Northland-based, Young said.

There were plenty of registrations from Aucklanders, but few bidders, he said.

"Once they saw the valuations before the auction, they may have sat back to see how it went before they moved." Construction of the first stage of the project will be finished next year and titles will become available towards the end of the year, Young said.

The $350 million was a "conservative estimate" of the value of the project, he added, because land prices in the area had risen steeply lately.