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A bargain at $12 million

A Gold Coast mansion has been snapped up for 5 million less than what the property cost to build.

The five-bedroom, seven bathroom luxury abode features nine formal living areas, an in-home cinema and parking for 12 cars.

The waterfront property has been on the market since September last year with price tags ranging from $17 million to $14 million.

The $12 million price tag is being reported as the highest sale on the Gold Coast in the past three years.

Colourful past

The Sanctuary Cove mansion was the dream of prominent entrepreneur Mr Scott who began preparing the site by demolishing two neighboring houses. By the time the subterranean garage and a few walls were erected, the GFC had struck and Scott’s company went into receivership.

UK-based businessman John Baines and his wife, Elizabeth, snapped up the 2836sq metre property off receivers for $4.3 million in 2009. The property was only complete for a few months when the couple decided to put the property back on the market.

Bottom of a slumping market

Earlier in the year David Koch reported that “Gold Coast house prices were down 15.1% from their peak in March 2010.” Kochie went on to explain that “oversupply of residential units is rampant (in the area) and what’s worse is that the area is experiencing a softer economy due to poor tourism numbers.”

However, it looks like cashed-up investors are looking to spend again in the area with the Gold Coast property market recently experiencing a couple of big weeks.

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Ray White Surfers Paradise Group boss Andrew Bell has said his prestige team had chalked up more than $30 million from Sanctuary Cove to Mermaid Beach in recent weeks.

Bell went onto explain that the top end of the market had been the most fragile segment for several years and that it was very encouraging to see a pattern of sustained sales emerging.