Near-finished mansion hits market as mortgagee sale

207 Sunshine Blvd, Mermaid Waters

A newly built mansion has collapsed within sight of the finish line, hitting the market as a rare mortgagee-in-possession sale exposing the heartbreaking toll of soaring holding costs.

The six-bedroom, four-bathroom home at 207 Sunshine Blvd, Mermaid Waters, is 80 per cent complete but has been abandoned before the final fixtures could even be installed.

Now in the hands of the banks, the forced sale serves as a brutal cautionary tale as a multimillion-dollar renovation frenzy sweeps southeast Queensland.

The unfinished 288sq m home on a 613sq m block is marketed by Matt Conduit and Dean Muldoon of LJ Hooker Broadbeach

“A rare opportunity has emerged to secure this substantial brand-new residence in highly sought-after Mermaid Waters,” the listing states.

The property was near completion when it was seized by the banks

The agents note the property presents an “exceptional opportunity for builders, investors or owner-occupiers looking to complete an outstanding residence and capitalise in one of the Gold Coast’s most desirable residential locations”.

Records show the owners paid $1,241,500 for the site in May 2022, with approval for a new house valued at $275,243 dated January 2023.

The collapsed mega-build comes as a new study shows Gold Coast homeowners are pouring eye-watering sums into property upgrades despite a market slowdown.

The finishing line was so close

Data from Australian retailer The Furniture Trader ranks the Glitter Strip city third nationally for renovation spend, with $26.5m in residential renovation work approved every month.

It trails Brisbane, recording a staggering $88m every month for the past five years, then the Northern Beaches, NSW at $33m.

The Furniture Trader operations manager Sam Cain said the figures highlighted a stark property divide across the country.

“What we’re seeing in [these] areas is a renovation market moving at completely different speeds compared to other parts of the country,” Mr Cain said.

“Some council areas, like Brisbane and the Gold Coast, are approving tens of millions in renovation work every month and still rising, while others have shown a stark decline over the same five-year period.

“Renovation demand isn’t just about where people can afford to renovate; it’s about where the housing stock still has room to grow into.”

A luxury start in a sought-after location for a deep-pocketed buyer

But while work rolls on across the Coast, the abandoned Mermaid Waters project highlights the growing financial strain of prolonged rate hikes for those caught mid-build.

Ray White chief economist Nerida Conisbee said while traditional mortgage stress measures remained relatively stable, household cash flows were under immense pressure as the cost of borrowing bites.

“Higher interest rates are putting more pressure on mortgage holders, but for now that pressure is not translating into widespread mortgage distress,” Ms Conisbee said.

She pointed to the latest APRA data showing a surge in borrowers switching to interest-only loans, which now account for 23.5 per cent of new housing lending — the highest level since 2019.

“The recent increase suggests more households are looking for ways to manage cash flow as mortgage rates remain high,” she said.

“We are not yet seeing widespread forced selling … A meaningful rise in forced selling would change that dynamic, but the mortgage data suggests we are not there yet.”

The Mermaid Waters property stands as a rare casualty offering major upside for the right buyer.

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According to the listing, the heavy lifting has been done, though the “kitchen and landscaping require design and completion” and the “pool and spa require completion however the big money has been spent here also”.

The property also has completed, separate guest quarters perfect for multi-generational living or an instant rental income stream.

“Why start a new build or begin to renovate when you can step into this where most of the hard work and expense have been completed.

“Properties of this scale in Mermaid Waters are tightly held, and opportunities to acquire a near-complete, brand-new six-bedroom residence under Mortgagee in Possession circumstances are exceptionally rare.”