With development fundamentals coming back into line off the back of lower interest rates, improving construction costs, and better economic sentiment, salespeople marketing a prime Mt Eden site are expecting developers to respond.

The freehold property at 581 Mt Eden Road offers a 1,457sqm flat, rectangular site with secondary vehicle access to the rear yard from Kingsview Road. It has a 398sqm standalone 1910s-character residential building positioned towards the front of the site which has been repurposed for commercial use. It is leased to Asthma New Zealand, a non-profit organisation which provides education, clinical support and training services to assist those living with respiratory conditions.

An attractive short-term holding income is on offer with an early exit from the site possible subject to providing the tenant with 12 months’ notice to surrender the lease, should a developer wish to progress future plans sooner.

The property has Residential - Mixed Housing Urban zoning, and effectively has quadruple grammar zone credentials being in the accepted catchment for Auckland Grammar School, Epsom Girls’ Grammar, Auckland Girls’ Grammar and Mt Albert Grammar.

Phil Haydock and Alan Haydock of Bayleys Auckland Metro team are taking the property through a tender campaign closing Tuesday 13th May, unless sold prior.

The desirable city fringe position on a main arterial close to Mt Eden village, boutique shops, cafes, restaurants and other amenity suggests that the best and highest use for the generously sized site would be a residential development, says Phil Haydock.

“Location does the talking here – and some good development density would be possible given the regular-shaped and uncomplicated nature of the site, supported by the favourable zoning.

“A terraced housing project would likely have the greatest traction, with three storeys possible over most of the site, bearing in mind maximum site coverage and boundary setback requirements.

“The site is unaffected by flood plains or flood prone areas, and essential infrastructure like power and water connections are easily accessible. There’s around 18 metres of street frontage to Mt Eden Road and the dual access is a definite bonus.”

Terraced housing is viewed as a more desirable typology than apartments in the current market explains Haydock.

“It tends to be lower risk, with an accessible end-product that is popular with the New Zealand market. The central location and favourable school zoning amplifies appeal for a residential development and we’re seeing genuine downward pressure on construction costs which, in conjunction with lower interest rates and a generally better economic outlook, points to an uptick in the residential development market.”

Alan Haydock says the property could also suit an owner-occupier wanting character space and looking to bank the land for future gain.

“This stretch of Mt Eden Road is largely residential, peppered with convenience strip retail and some commercial office space. The property has off-street parking for around 12 cars and there’s strong bus connectivity with a stop virtually at the gate.

“It’s conceivable that an owner-occupier looking for a well-located business premises could relocate here, with due consideration for the existing lease terms, secure in the knowledge that the underlying land will have strong value for a residential project down the line.”