NZ High Rise in Sales Trouble?

Sentinel, is New Zealand’s tallest and newest NZ$137 million luxury high-rise, and there could be some good deals on re-sales for the smart investor.

Located in Takapuna on Auckland’s North Shore the Sentinel is only recently completed and several cash-strapped purchasers have been forced to forfeit thousands of dollars in deposits because they cannot afford the new units they had contracted to buy.

Presumably these were speculators who got caught: they never intended to settle, but to on-sale the apartment before settlement. Investment property in Auckland is now not selling anywhere near fast enough and has seen the end of those quick flips. Though even owner occupiers who where “down-sizing” from the family mansion may be having trouble selling their current homes in order to settle.

That is a far cry from action in the tower a year ago when a form of opportunistic “futures trading” was taking place on some Sentinel units which were selling more than once, even before the block was finished.

Unit buyers engaged in a flurry of title trading in the hope of making quick money. For example, some units which fetched around $900,000 originally had resold for more than $1 million, the tower’s marketers said last year.

According to their own sales copy:

“Rising above Takapuna Beach, The Sentinel is one of the most luxurious residential apartment towers in New Zealand. This stunning new landmark offers elegantly designed residences with spectacular views. Designed to rival the world’s five-star hotels with amenities and services that are anticipated and met. The Sentinel heralds the arrival of 21st century urban living!”

The appeal of the location is undeniable: the beaches are attractive on the North Shore and unlike most of the CBD high rises, Sentinel was developed to appeal to both owner occupiers and tourists. If you still have your day job then commuting via the Devonport ferry is an attractive option to dealing with Auckland’s notorious traffic congestion.

Several apartments are being advertised for around the $900k mark so it might be time to make a cheeky offer. Or if you want to try before you buy you can rent a 2 bedroom apartment high in the tower for approximately NZ$2000/week