PHOTO: Christopher Luxon. FILE
The Prime Minister has set a fixed price of $945,000 for the Auckland investment property he is currently selling.
Christopher Luxon’s tidy two-bedroom, 96 sqm brick and tile unit in Onehunga was initially listed on July 24 with a sale deadline of August 6. The agents marketing the property have not disclosed why Luxon changed his approach, but the asking price reveals his expected profit from the sale.
Records indicate Luxon acquired the property in November 2015, with reports suggesting he paid $650,000 for the unit. If it sells at the $945,000 asking price, Luxon stands to make a gross profit of $295,000.
The asking price is $205,000 below the 2021 CV of $1.15 million, indicating Luxon’s awareness of the housing market’s downward trend.
For privacy reasons, OneRoof has chosen not to publish the street address or link to the listing. The listing does state that the house is Healthy Homes Compliant and features a modern kitchen and two toilets.
The agent’s marketing suggests the property is ideal for first-time buyers, downsizers, or anyone seeking a low-maintenance lifestyle in a prime location. Listing photos show a well-maintained, fresh-looking home.
Luxon owns several rental properties, a holiday home on Waiheke Island, and a family home in Remuera. Last year, he assured Q+A host Jack Tame that his investment portfolio does not affect his judgment on housing policy and that he has been transparent with Kiwis about the number of homes he owns.
The National-led Government, under Luxon, has reinstated interest rate deductibility for property investors and reduced the bright-line period from 10 years to two. This change does not impact Luxon’s property, as it was purchased before the Labour Government extended the bright-line test.
Luxon is selling in a subdued housing market, with OneRoof figures showing Auckland’s average property value fell 2.4% in the last three months, and Onehunga’s dropped 7.2%. First-home buyers are currently the most active group in the market, but investors are showing renewed interest.
Wayne Shum, senior research analyst at OneRoof’s data partner Valocity, noted that properties appealing to both first-home buyers and investors might see a price boost, whereas investor-only properties are struggling. “Investors are only looking for bargains – they’re not going to pay top money,” he said.
Ray White agent Rohan Thompson, who sells in Onehunga, reported good buyer activity for properties priced around $600,000. He recently sold a property for $1.05 million after multiple offers and another for $1.6 million at auction, indicating most buyers in the Onehunga market are owner-occupiers. Properties are generally selling below CV, reflecting vendor acceptance that the CVs were assessed during the market peak in 2021.
SOURCE: ONEROOF