$175k income: Rockdale brothel listed for sale
A site with a ground floor retail shop and an upstairs brothel site has come up for sale. The businesses are not connected.
A retail site partly occupied by a furniture store has come up for sale with a surprising X-rated inclusion upstairs.
The shop in the Sydney suburb of Rockdale includes a separate, second-level licensed brothel with dancing poles and ample showers. The hallways are painted pink and mirrors adorn the walls in some rooms.
Information provided in the listing reveals the site generates close to $175,000 in gross income per year but it also claims there is an opportunity for “significant rental reversion”.
Rental reversion basically suggests current rents could be under market value and can be increased down the line. Selling agents CBRE revealed the site could potentially generate about $238,000 in rental income. The current rent from the brothel alone is about $100,000 a year.
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The retail site includes a licensed brothel upstairs.
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“As the world’s oldest profession, the property is one of three sex services premises which has a license by council to operate in Rockdale,” the listing said.
The second-level venue is currently leased to a business trading as AA485, but was formerly known as Red Royale. The lease was reported to be expiring in 2027. The brothel has no connection with the business downstairs.
An X account for the brothel business when it traded as Red Royale boasted of offering a “service” that includes an explicit sex act involving the male posterior.
A website known as Brothel Advisor said: “expect to meet Korean and Asian girlies … or ask about Diamond Service where you get a slightly different service”.
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There is a dancing pole in one of the rooms.
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The same source claimed “girls” who work at the site were “on roster to spoil and please you”.
Online reviews were mixed. “Absolutely disgusting experience”, read one google review. A review on Veneev posted in 2020 said: “Worst brothel I’ve ever attended girls are very rude”.
Another review was more upbeat: (it’s) the best place to hang out … it felt like I had a second wife”.
The property on the Princes Highway last traded for $650,000 in 1997 – which was the same as the 1987 price, records showed. It is understood agents are awaiting market feedback before releasing a price guide.
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The brothel includes a reception area.
It comes as property experts revealed many legal brothel sites across Sydney and Melbourne were being repurposed for other uses due to the complications of operating legal brothels.
One former brothel operator told The Daily Telegraph illegal adult massage parlours and the rise of online escorting agencies made it difficult for many licensed venues to turn a profit.
He added a general rule of thumb in the current climate was that about 20 per cent of operators made 80 per cent of the brothel industry revenue while the rest often struggled.
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The dual use site viewed from the street.
Ray White Commercial head of research Vanessa Rader said they tended to be “unorthodox property investments”.
“The sensitive nature of this industry presents distinct challenges for potential investors,” she wrote in a recent commercial property update.
“Concerns surrounding insurance, security, and safety can be significant deterrents, potentially impacting property values and borrowing capabilities.
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“Investors venturing into these niche markets should carefully assess factors such as regulatory environments, community perceptions, scalability potential, and long-term market trends.
“By thoroughly evaluating these aspects, investors may uncover hidden value in these unorthodox property investments while navigating the associated risks.”
