Owners collect 20-times profit on stunning beach shack sale

A cashed up local family has shut out apartment developers by paying an unbelievable sum to secure a pair of humble beach shacks.

187-189 Jefferson Lane, Palm Beach

A pair of original beachfront shacks has sold for $20.2m, yielding an astonishing 20-fold profit for a family who had held the land for more than 30 years.

The cashed-up buyer of the 817 sqm parcel at Palm Beach was a local family with an unprecedented offer that trumped several developers who were also eyeing the coveted listing.

Marketing agent Nick Williams, of Williams Real Estate Indooroopilly, said it was a heart-led purchase for the buyer, who intended to build a showstopper family home after flipping another property at Main Beach.

Affluent buyers are outbidding developers for their dose of Vitamin Sea

Records show the Brisbane-based owners paid $1,072,500 for the two lots with combined 20m beach frontage at 187-189 Jefferson Lane in 1993.

A double-storey classic beach home and smaller cottage on the site were each leased to long-term tenants.

“The owners bought the property as super for their children and had never lived there,” Mr Williams said.

“The market on the Gold Coast has obviously kicked on but they kept the tenants in at below-market rent because they knew the future potential for a developer.”

The sky is the limit when acquiring this as your backyard

High-profile Queensland developers including Mosaic and Graya capped their offers for the site at $18m.

“We had offers from promiment developers but they were foreseeing the market might get its wobbly boots on next year and were concerned about paying too much,” Mr Williams said.

“The eventual buyer, on the other hand, very much loved Palm Beach and wanted this place for his family and so was willing to pay what the owners were looking for.

“He bought with his heart, as opposed to those doing it for a financial return in a year or two.”

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The sale comes on the heels of the record-breaking $40m purchase of a prime 1525 sqm site along the same strip by Aussie fashion label mogul Lucy Henry-Hicks and her builder partner Mitchell Lau, who are also planning a jaw-dropping beachfront home.

Meanwhile, a luxury three-level mansion on a 412 sqm lot at 159 Jefferson Lane recently sold for $11.15m.

A local family with four children snapped up the Spanish-inspired beach home, designed by architect Jared Poole for Megan and Wade Ziems, the couple behind cult bridal label Grace Loves Lace.

Dissh fashion label CEO Lucy Henry-Hicks and builder husband Mitchell Lau splashed $40m on a prime beachfront site

The four-bedroom, four-bathroom house was marketed by Amir Prestige, with agent Tony Coughran, of Simpy Gold Coast Property Advisors, negotiating the purchase.

Mr Coughran note the two properties sold at a similar rate per square metre, despite their stark difference in condition.

“Owner-occupiers are buying in the street to build their ultimate legacy homes which they will hold for future generations, much like the owners of those shacks had held them for decades,” Mr Coughran said.

“We had been on the lookout for our client for well over 12 months, and that supply and demand is always going to hold these properties in good stead.

“Affluent families are flying under the radar and outbidding the developers to secure their legacy homes,” he said.

159 Jefferson Lane sold to a local family for $11.15m

PropTrack data shows house prices in Palm Beach were up 13 per cent over the past year, to a median of $1.731m.

Mr Williams said developers had to factor in costs associated with complying with council build regulations, notably the setback from the shoreline, but may need to re-consider their strategies to compete with high-net-worth individuals seeing huge local value.

The property was described as “an extraordinary and nearly unrepeatable opportunity” to acquire side-by-side lots in a desirable corner location.

“Two classic beach houses on the property are in liveable condition and provide holding income while you design your dream redevelopment — be it a luxurious apartment complex (subject to council approval) or a magnificent family residence,” the listing stated.

The Spanish-inspired mansion was built for bridal boutique boss Megan Ziems and her husband Wade

Originally published as Owners collect 20-times profit on stunning beach shack sale