Developers are quitting Auckland projects and instead of building 68 new residences are now seeking urgent or fire sales, an agent says.
James Law of James Law Realty on Shortland St yesterday said this about the Shanghai-based owner of bare land at 46 Upper Queen St on the fringe of the CBD in Newton.
Now, the Auckland owner of a Ranui redevelopment site in west Auckland has abandoned his large-scale residential plans for around 33 new homes and also wants to sell.
Sales are being sought as fast as possible and the developers are willing to take offers, Law said.
He described the Shanghai vendors as seeking a "desperate exit" from 46 Upper Queen St where they ditched plans for 35-unit nine-storey apartments, while the Auckland owner asked him to put "fire sale" in the marketing of the west Auckland site.
"Following the desperate exit of the vendors of 46 Upper Queen St, we are also approached by another developer of Chinese origin and we were instructed to sell this urgently," Law said.
"The owner came to our office in a haste and literally holding my hands requested to sell this site urgently. They even suggested to put down words such as fire sale," Law said of the property at 42-52 Munroe Rd, Ranui where 33 new places were planned.
"They do not seem to be looking for a premium on the prices and I genuinely believe they are extremely serious in achieving a quick sale," Law said of the two vendors.
Plans for 46 Upper Queen St, a site now for sale. Photo / James Law Realty
James Kellow of NZ Mortgages & Securities said his business had loaned money to the vendor of the Ranui property, Richard Lan Zhen.
But the two sale situations were quite different, Kellow stressed.
"Sunyu Group's main shareholder is a Kiwi developer," Kellow said.
"Richard has a long-term New Zealand development track record and lives in Greenlane. He was born overseas but is as much of a Kiwi developer as the next guy," Kellow said.
"NZMS has funded a $20m townhouse development for Richard in Takapuna. This development has been well presold and very high quality. NZMS is very supportive of Sunyu and were hoping to fund Richard's development at Ranui next. NZMS will be fully repaid from Takapuna sales and Richard will recycle his profits into Ranui. Munroe Rd will be lower-cost housing due to cheaper land but will still be good quality," Kellow said.
The Ranui property is being advertised to test the market but there was no pressure from financiers, Kellow said.
"If Ranui is in fact sold, NZMS will be happy to finance the new owners as the consented development is a good use of the site," Kellow said.