Property bargain? Auckland waterfront apartment sells for $5000

A downtown Auckland apartment with waterfront views has sold under the hammer for $5000 - and no, you aren't reading that wrong.

The two-bedroom apartment features a modern kitchen, two bathrooms, lounge room and unobscured balcony sea views towards Devonport.

The apartment in the Scene One Building at 2 Beach Rd has unobstructued views north towards Devonport. Photo / Supplied

Located in the Scene One Building at 2 Beach Rd, it is just a short stroll from Wynyard Quarter and Britomart in one direction and the Spark Arena in the other.

Auckland Council values the apartment at $550,000.

It last sold in 2009 for $330,000, according to property website OneRoof.

It has potential to be rented out to a tenant for more than $700 a week.

The home was put up for sale at Ray White City Apartments' auctions on Thursday and the bidding was wrapped up in just over three and a half minutes.

During that time 14 bids were laid, taking the price from a $500 initial bid to the $5000 successful bid.

It's not all sunshine, however, as the building does need remediation work. Photo / Supplied

So is this the bargain of the century?

"It is complicated," Ray White's marketing website said, as the agency indicated before the auction the apartment would likely sell so cheap its buyer wouldn't need a home loan.

"Don't be shy to bring your credit card or your cheque book, but probably don't bother your bank manager."

Part of the reason for that is the apartment is a leasehold property, and Scene One complex owners need to pay annual ground rent.

Ground rent for the apartment is $22,004 per year, and a rent review is due in 2025, Interest.co.nz reported.

Combined with $9460-a-year operating expenses and $1683 a year in rates payments, the new owner would need to pay a total of $33,147 a year in ownership fees, the media outlet said.

The Scene One complex needs repairs, and owners are involved in a legal case over the matter. Photo / Supplied

The Scene One building is also tied up in a legal fight as it needs repair work for weather-tightness issues.

That's created uncertainty about who will have to pay for the repair costs and how much, meaning a new buyer would have to factor that risk into the purchase.