Queensland’s auction record smashed with the $24 million sale of an island mansion

It was an auction like no other: 283 inquiries about the property, 147 inspections and, finally, 42 bids on the day itself.

And by the time the auctioneer declared, “Going … going … gone!” on the sale of the glamorous six-bedroom, six-bathroom house on the Gold Coast’s Isle of Capri, all Queensland records had been smashed for a home sold under the hammer.

“It was extraordinary,” says Kollosche principal Michael Kollosche, of the sale of 59 The Corso for $24 million. “The prestige market is going so strongly and that record-breaking sale showed the depth of demand there is for quality homes.

“It’s been a great start to the financial year and all indications are that the property market here will continue to trend upwards. We’re seeing fewer homes come to market, and there are still a lot of people moving from Melbourne and Sydney and, together with overseas visitation resuming, there’s so much demand, and that’s all serving to drive prices up,” Kollosche says.

While that auction sale has set a new benchmark for Queensland, there are still plenty of properties being offered at similarly eye-watering prices – for the Sunshine State – but often via private treaty or expressions of interest.

Another property Kollosche has on the market, for example, is the six-bedroom, seven-bathroom Alston mansion on Main River at 5 McMillan Courth, Southport. Price: $31.5 million.

5 McMillan Court, Southport QLD 4215

On a 3442-square-metre riverfront allotment, with its own private sandy beach, it has basement car parking for five vehicles, a gourmet kitchen, wine cellar, two-level library with dramatic spiral staircase, hotel-style marble bar, full-sized billiard room, state-of-the-art cinema, heated indoor pool, spa, sauna and gym.

Meanwhile, fellow Gold Coast agent Amir Mian is offering the six-bedroom, nine-bathroom Palazzo Vittoria, at 26-34 Knightsbridge Parade, Sovereign Islands, for a cool $40 million.

“The market is going very well, and we’ve had $154 million in sales just over the past two months,” says Mian of Amir Prestige Group.

“I think strong migration is one of the causes with international migration doubling, the change in the rules for Kiwis coming to Australia and students returning. Stock levels are also very low.”

Generally, auction clearance rates on the Gold Coast are sitting at around 75.2 per cent on Domain figures, although Kollosche’s records show theirs were at 92.59 per cent for the last quarter, 96.43 per cent for the quarter before, and 90 per cent for the one before that, with 93.16 per cent overall for the last financial year.

The $40 million view from 26-34 Knightsbridge Parade, Sovereign Islands Photo: Supplied

Elsewhere in Queensland, they are generally lower, with Domain’s latest auction report for July 2023 showing Brisbane had a clearance rate of 62.5 per cent, well below Adelaide’s 74.9 per cent, Sydney’s 72.4 per cent, Melbourne’s 70.4 per cent, and Canberra’s 69.9 per cent.

Brisbane remains the weakest capital despite its clearance rate seeing strong results relative to its historical performance,” says Domain chief of research and economics Dr Nicola Powell. “This is the second consecutive month above 60 per cent, which was last seen in February 2022.

“While the clearance rate decreased over the month, it is 25.7 percentage points higher annually. This is the steepest annual growth of the capital cities and the highest growth since November 2021.”

The Gold Coast has seen strong sales results in the past six months. Photo: Supplied

Queensland Sotheby’s International Realty chief executive Paul Arthur says that’s largely a result of Brisbane relying less on the auction method for sales, than either Sydney or Melbourne.

“In those cities, auctions are their main method of sale but in Brisbane, their popularity is still growing but from a lower base,” Arthur says. “Generally, sales are very solid in Brisbane, especially at the luxury end of the market, and across all locations, especially the lifestyle ones.

“We haven’t seen too much of a pullback in prices in these areas. The strength is a result of a combination of migration, overseas visitors and a low stock inventory. Quality properties are still going at top prices.”

On the Sunshine Coast, where Noosa homes are in so much demand, the clearance rate is slightly higher at 64 per cent. It’s not tracked so much in Far North Queensland, in cities such as Cairns, Port Douglas and Palm Cove in between, but prices there are holding up well.

Arthur also tips the Whitsundays region as being particularly strong, with places such as Hamilton Island still a playground favoured by the rich and famous, and Airlie Beach fast transforming from a backpacker haven to a charming centre with some excellent homes.

Meanwhile, back on the Gold Coast, Kollosche is celebrating his record-breaking sale – the highest at auction since the $16.45 million paid for 41 Picture Point Crescent in Noosa Heads in 2021. The Corso property is a three-level mansion with stunning views and 52.7 metres of water frontage, a cinema room, billiard room, gym, a six-car garage and a 7000-bottle wine cellar.

“It was built in the late ’90s and, as a result, it was a bit tired,” Kollosche says. “Ultimately, the buyer wanted to spend $5 million on a refurbishment but he’ll probably end up paying $8 million, which means it’ll be a $30 million property by the end of the work.”

“And the Gold Coast is still relatively cheap in comparison with the southern states. You can sell there for $10 million and buy something nice here for $5 million, or sell for $15 million and buy something in a great location with fabulous views for $7 million.”

Article source: Queensland Property Investor