Future-proof and income-positive

Auckland’s city-fringe intensification is accelerating, Bayleys brokers say, as the sale of a prime redevelopment site with intensive development provisions, dual frontages, and strong existing income is offered to a market with development-enabled land in short supply.

Bayleys Auckland Metro director Alan Haydock, together with colleague Damien Bullick, is marketing the freehold site at 12 Karaka Street for sale by tender, closing at 4pm on Thursday 30th October 2025 (unless sold prior).

The 472sqm (more or less) site occupies a prominent, elevated, north-facing corner with dual frontage to Ian McKinnon Drive and extensive exposure to Newton’s thriving city-fringe catchment.

“Zoned Business - Mixed Use with a 32.5m height overlay, the property supports a wide range of development outcomes, from intensive residential to mixed commercial schemes,” Haydock says.

Currently improved by a two-level residential building comprising two self-contained flats - one six-bedroom and one five-bedroom - with nine onsite car parks, the asset generates $150,000 per annum under a single leaseback to the owner.

Haydock says the existing income provides a flexible holding position while development plans are progressed.

“Newton’s transformation into a vibrant, high-density suburb continues to generate strong demand for well-located assets for redevelopment.

“The precinct’s ongoing evolution, supported by major infrastructure investment and a new generation of mixed-use projects, is reshaping Newton into one of Auckland’s most functional urban villages.

“Opportunities combining income resilience and redevelopment capacity are increasingly scarce, particularly in locations this well-connected.”

Located within walking distance of Karangahape Road, the upcoming City Rail Link station, and major transport links, the property benefits from efficient access to the CBD, Ponsonby, and Mount Eden, in addition to the medical precinct and university quarter.

According to Bayleys Auckland Metro director Damien Bullick, the streetscape reflects Newton’s transition to medium-and high-density living, highlighted by developer Urban Collective’s 107-apartment project at 59 France immediately next door, a nine level building over two basement car park levels, which underscores the precinct’s growing market strength and investor confidence.

“The property’s zoning and height allowance provide an exceptional platform for developers seeking scale in a tightly held corridor. Zoning provisions for the site are 16 metres higher than the typical mixed-use standard - offering meaningful uplift potential.

“Preliminary concept plans for a nine-level apartment scheme highlight the site’s capacity and versatility,” he adds.

As Auckland’s city-fringe market strengthens on the back of population growth, infrastructure upgrades and policy settings favouring urban intensification, assets offering both immediate yield and long-term optionality continue to attract strong competition.

“In today’s market, investors are prioritising strategic flexibility - cash flow that works now, with development upside secured tomorrow. This property meets that criteria in abundance, offering a rare opportunity in a premium location experiencing generational change.”