Mega-mansion sells for less than it cost to build

ONE of Australia's largest penthouses has sold for less than what it cost to build after languishing on the market for more than two years.

Sky House

ONE of Australia's largest penthouses has sold for less than what it cost to build after languishing on the market for more than two years.

The sensational 1089sq m home, which is about nine times size of the average Australian unit, has five-bedrooms, water views, eight separate terrace gardens and an outdoor Jacuzzi.

It reportedly cost more than $2 million to build three years ago and sold for a mere $1.6 million.

Sky House

By Sydney price standards it’s a steal, but the whole-floor apartment, nicknamed the Sky House, isn’t on Sydney Harbour, but on the Central Coast in Gosford overlooking the Olympic Pool and Brisbane Waters.

Advertisements for the property said its "outdoor living space rivals that found in most residential homes",  and it's sheer size may have actually deterred buyers with most Australians opting for units under 150sq m and homes under 240sq m.

Sky House

Based on the current cost per square metre of prestige property around Sydney Harbour, the luxury address could have fetched up to $20 million.

The time on the market sale highlights the cracks in the luxury property market that has kept buyers sidelined, even when genuine bargains like this are up for grabs.

Sky House

Stephen Gittoes of Gittoes East Gosford sold the home, which was added to the top of the seven-year-old Araluen Apartments building in 2010.

He said there had been initial interest from Sydney buyers wanting to commute with the property eventually selling to a family.

But it was a long time in the waiting. Being on the market for more than two years, extended far beyond the 93-day average for units in Gosford.

Sky House

“It took some time to sell, but with a property like that it’s just a matter of waiting for the right buyer to come along. And they did, finally, a family bought it,” Mr Gittoes said.

“I think they actually got a really great price, it should have gone for much more because I believe it cost more than $2 million to build, but the market just wasn’t going to pay that,” he said.

Mr Gittoes said it was one of the region’s most stunning homes.

“It’s something extraordinary, you really have to see it to believe it,” he said.

According to RP Data, the property was built and owned by a local builder trading under the name Terrigal Grosvenor Lodge Pty Ltd.