Backwards at $2,000 a day: Millioniare's Row Hedges Avenue, Mermaid Beach still at half price

The luxury Gold Coast beachfront property, 241 Hedges Ave on Mermaid Beach, sold at $4 million yesterday, representing a $4.7 million loss.

There were four bidders.

The four bedroom Mediterranean style house on a 405 square metre block last traded in 2008 when bought by cotton farmer Alan Frost for $8.7 million from the Ray family.

The opening bid was $3.8 million for the house with 650 square metre internal space with the auctioneer Colin Banks declaring the home on the market at $3.95 million.

Its unimproved land value was recently put as $2.9 million, reflecting a $7,150 a square metre land value as against the market price at $9,900 a square metre.

The News Ltd local paper, the Gold Coast Bulletin said it sold to a Brisbane buyer.

It was marketed by the former high-flying agent Harry Kakavas in conjunction with Tony Velissariou.

The cotton farmer Alan Frost recently paid $6.6 million for 103-105 Hedges Avenue, Mermaid Beach – his third home on the exclusive strip known as millionaires’ row. It was an 810 square metre double block holding, reflecting $8,150 a square metre.

The latest $4 million sale join the long list of loss takers with the delayed onset of the global financial crisis still playing havoc with prices

In late 2011 Property Observer recorded a 57% price drop at 199 Hedges Avenue on its 2007 pre-global financial crisis sale price.

The 199 Hedges Avenue property was bought by Parkdon Pty Ltd, a company associated with Avi Silver from Caulfield. The vendor, Max Twigg, also came from Melbourne.

It cost $17.5 million in 2007 and resold at $7.7 million in 2011, meaning the price dropped by about $50,000 a week during his four-year ownership.

Another $10 million plus loss on the Gold Coast's "Millionaires' Row" was incurred by the internet-billing company high flier Daniel Tzvetkoff, who splashed out $27 million in early 2008 on the unfinished mansion of fallen tourism entrepreneur Tony Smith and his wife, Simone.

At its mortgagee sale in 2009 it resold at $17 million to drilling tycoon Peter Mitchell, who was cashed up after selling his business for $150 million. Given the Ipswich-born internet whiz-kid spent $8 million on almost completing construction, Tzvetkoff's foray actually translated to an $18 million loss.

"As well as a reduction in the volume of sales, prices since the GFC have fallen by anywhere between 35% and 50%, with the most expensive homes generally suffering the greater price drops," HTW noted at the time in 2011.

But losses have still been reoccurring with 237 Hedges Avenue selling last year at $3.35 million, which was down on the $3.65 million paid in 2011, and the $6.75 million peak paid in 2008.

Eight Mermaid Beach price collapses (compiled by Property Observer)

• 199 Hedges Avenue (pictured below), sold in 2011 for $7,700,000, last sold for $17.5 million in 2007, a loss of 57%.

• 247 Hedges Avenue (pictured below), sold in 2010 for $5 million, last sold for $10.25 million in 2007, a loss of 51%.

• 31 Hedges Avenue (pictured below), sold in 2011 for $5.4 million, last sold for $11 million in 2008, a loss of 50%.

• 19 Albatross Avenue (pictured below), sold in 2010 for $6 million, last sold for $11 million in 2008, a loss of 45%.

• 31 Albatross Avenue (pictured below), sold in 2009 for $5.35 million, last sold in 2008 for $9 million, a loss of 40%.

• 49 Hedges Avenue (pictured below), sold in 2000 for $9.5 million, last sold in 2008 for $16 million, a loss of 40%

• 89A Albatross Avenue (pictured below), sold in 2010 for $6.5 million, last sold in 2006 for $10 million, a loss of 35%

• 33 Hedges Avenue (pictured below), sold in 2009 for $17 million, last sold in 2008 for $27 million, a loss of 37%