Brothels big business on commercial market

For an sometimes maligned investment class, brothels are doing big business on the commercial property market.

A string of establishments are currently listed for sale across Australia, with agents spruiking the enticing yields on offer and the inherent investment value, particularly for self-managed super funds.

Rocklea, Queensland

Among the properties on the market is a converted warehouse and industrial space in Rocklea, Queensland, which is currently operating as Ding Ding 83.

One of the rooms in the Ding Ding 83 brothel.

Lioncorp agent Michael Wanklin is marketing the property, which is listed with a price guide of $1.975 million and returns $144,000 in rent annually.

Wanklin says that with a new five-year lease and two further five-year options, the brothel makes for a sound investment.

The brothel is expected to sell for almost $2 million

“It’s somewhat recession-proof and it’s one of only a few in Queensland that are actually legal. They’re quite hard licences to get,” he says.

Wanklin says brothels often attract Asian investors, as they view the property purely on an investment basis, without fear of the stigma of owning a property leased as a brothel.

The reception area at the Ding Ding 83 brothel in Rocklea.

Cairns, Queensland

One of only two licensed brothels in Cairns is for sale, just outside the city’s main tourist and shopping precinct.

The building at 7 Owen Close is also being touted for its development potential, with about half of the 2095sqm property vacant and undeveloped.

According to the property’s listing through Ray White Commercial, the property was previously used as a brothel and can continue to operate as one under the Cairns Town Plan.

The building features 10 car spaces, five bedrooms, reception area, office, security fencing and double garage, and is for sale via expressions of interest

Rockdale, NSW

It’s two brothel buildings for the one price in Rocklea in Sydney’s south.

Positioned in the heart of Rockdale’s town centre, the two interconnected buildings are currently fitted out as a 16-room brothel, with development plans lodged for a 17-room boarding house.

Set on a 335sqm block, the two-storey properties have a combined 556sqm of floor space and are offered with vacant possession.

Ray White Canterbury’s Leon Roussakis is handling the sale.

Collingwood, VIC

History is on investors’ side at 100 Johnston St, Collingwood, which has been operating as a brothel from the double-storey house for 40 years.

The property, listed online as the “Number 100” brothel, returns $120,000 in annual rent and is close to both Smith St and Brunswick St.

It is being marketed by Peter Markovic’s Antonio Lorusso.

Garbutt, Queensland

Formerly operated as the Australian Maid brothel, this property at Garbutt in Queensland is available for sale or lease.

Operated as a brothel for 13 years, it has five bedrooms, a reception area, waiting area, workers quarters, breakout area and laundry, as well as 10 car spaces.

Ray White Commercial’s Tony Parker and Troy Townsend are handling the sale.