Relax, it’s sold: Rancho Relaxo fetches $5.58m at auction – but what's next?

In a rare twist, Rancho Relaxo, which paused operations last May, was purchased back at the public auction on February 10 by one of the original owner’s family members, a sale managed by court-appointed trustees. Despite hundreds of inquiries, only three bidders were registered on the day.

“There was a lot of interest, and it was from everywhere too, from all over Australia and even some expats living overseas … Asia, Europe, a lot of people who actually knew the property, which was quite interesting … there were a lot of people who have been guests of Rancho,” said Nolan.

Crescent Head is an internationally renowned surf destination known for its pristine waters, soft, rolling waves suitable for longboards, and deep-rooted surfing culture. It is undergoing something of a commercial renaissance.

Nolan said it was this love of surfing and fishing culture that attracted buyers to Rancho Relaxo, a place popular for its flexibility across private, group and full-site bookings.

“That’s the big profile of a lot of buyers up in that area … they’ve surfed there as kids, gone away, made money and and they like the idea of buying a permanent place up there … they want to stake a claim on what they’ve loved growing up with,” said Nolan.

Spread across forested grounds, the property features an 18-metre pool, tennis court, golf range, heated spa, a private lagoon framed by lawns and bamboo, and nature walks. The accommodation, which sleeps 29 guests, includes two luxurious Balinese-style huts, the spacious Frangipani and Lotus houses, and a converted chapel.

Offered across three titles, with an initial price guide of $5 million to $6 million, Rancho Relaxo enjoyed an extended marketing campaign after a summer postponement of the original auction date of December 18.

With the sale of such a significant parcel pulling at the heartstrings of so many locals, Nolan revealed it’s business as usual for the site.

“We understand it will keep operating as it is,” he said.

On such a large parcel, the property was expected to resonate strongly with the rising demand for boutique stays, surf retreats and event-based tourism in Crescent Head.

“That [surf] break there at Racecourse is a really easy, rolling wave … and Crescent Head is one of Australia’s few surfing reserves. It’s a good joint,” co-listing agent Askew said during the campaign.

Askew said the village’s transformation had strengthened the site’s commercial appeal: “There’s a new restaurant and hotel at Crescent Head called Sea Seas … and The Med … it’s all six minutes away. I think, commercially, it’s very, very good.”

Apart from the surf and holiday amenities, the property is near national parks like Goolawah and Limeburners Creek, which give it a wild surf-meets-forest feel.

Askew believes the holding’s versatility was a major drawcard. 

“You’ve got three titles … so, worst-case scenario, you can bring in other buyers, or you could sell lots off, change the community title, whatever. I think you can do lots of things,” he said.

While Rancho Relaxo had operated as a popular retreat for years, the property was being sold without trading figures due to the court-appointed administration process. However, Askew believed the lack of financial history represented a major opportunity for incoming buyers to tap into the growing demand for small-scale wellness retreats, surf camps and destination events. 

He imagined the property’s next chapter could be far more ambitious, by adding a large barn to assist with events – an upside that has the potential to generate close to $1 million a year. 

“I personally see weddings and stuff like that being able to go here,” he said. “They could use the whole thing … It has some very good potential … If you charged $20,000 to $30,000 for a weekend, and allow 40 of those a year at an average of $20,000 … that’s $800,000.”

Askew said the price range was more general guidance rather than a fixed expectation, and encouraged investors to judge the opportunity on fundamentals.

“As this is a trustee sale, the trustee has the authority to sell at a price they consider appropriate, and nothing is set in stone,” he said. “Our instructions are clear that a new buyer needs to be found.”

Askew highlighted the site’s value when compared to the recent sale of a neighbouring 2.02-hectare property for $2.8 million. “This is pretty good value,” he said.

The property benefits from the quintessential Aussie surf town’s rising profile and the sheer rarity of such a large private coastal opportunity within minutes of a world-class surfing reserve. 

As Crescent Head – with a population of about 1500 – continues its ascent, Rancho Relaxo was considered by agents to have “no close private comparison offering the same combination of setting, land volume, lodging mix and on-site recreation”.

Once a sleepy surf village, Crescent Head is in the midst of a coastal renaissance, reshaped by design-led hospitality, wave-chasing travellers and a new generation of boutique accommodation along the coast.

The highly curated Sea Seas Hotel, with its contemporary surf-club sensibility, and The Med motel, refreshed with modern beach styling reflecting Crescent Head’s relaxed charm, have cemented the town’s evolution into one of Australia’s most desirable lifestyle destinations.

Sea Seas Hotel, a 25-room property inspired by 1970s surf clubs, offers elevated beachfront dining and contemporary coastal style. The hotel is located on a former motel site and is owned by George Gorrow, the co-founder of the Australian fashion label Ksubi, and his wife, Cisco Tschurtschenthaler, who also spearheaded The Slow in Bali. 

Around the corner, The Med is a newly revitalised motel. It offers group-friendly accommodation for up to 50, blending cosy modern comfort and Mediterranean-inspired design with laid-back surf-town ambience.