Michael Chaney's historic Margaret River retreat burnt in WA bushfires

The wildfires that ripped through the millionaire’s beachside sanctuary of Prevelly in WA’s Margaret River have turned dozens of houses to ash, including Michael Chaney’s historic Wallcliffe House.

Ten of millions of dollars in property have been wiped off the value of coastal communities of Gnarabup and Prevelly.

Scores of houses have been damaged during several days of fire, which was caused by a controlled burn-off that went horribly wrong.

The historic Wallcliffe House was among the official count of 31 houses destroyed.

On Thursday the shingles of the 1865-built house caught alight and fire tore through the stone buildings, including the recently added guest wing.

The house is owned by Perth millionaire and NAB chairman Michael Chaney and his wife, Rose. It cost $5 million in 2001. So committed to the house that Rose took the long-time gardener, the late Colin Thompson, to Europe to inspect and replicate the gardens of Spain’s Alhambra.

Wallcliffe House was a two-storey stone, shingle and corrugated iron homestead designed in the Victorian Georgian style built by the Bussell family. The five-hectare property also had long associations with the Terry and Hohnen families.

The luxury 10-cabin Isaac’s Ridge Cottages was also destroyed and some tourists lost their belongings and had to camp at the beach for safety.

Prestige wineries including Voyager Estate, Cape Mentelle and the Leeuwin Estate were all evacuated and being closely monitored.

Cashed-up holiday makers have been calling local estate agents concerned that their beachside Christmas rentals were under threat.

Premium properties in Prevelly leased for $5,000 a week during the festive season, when the area is heavily booked.

Local holiday leasing agent Jacqueline Keller says it is too early to even guess which houses have been destroyed or damaged.

“We only know what we are hearing on the radio, but our phones have been running hot. We are just glad there has been no loss of life,” she says.

In Prevelly and surrounding areas, which is a favourite haunt of Hugh Jackman, dozens of holiday investments properties are heavily leased for the week of Christmas.

About 15 houses in the afflicted area listed for sale with price tags of between $800,000 and $3 million. It is not yet known if any are still standing.

Premier Colin Barnett has declared the area a natural disaster zone and promised a full inquiry will take place into how the blaze happened.

The Premier said that those who lost their homes will receive an immediate compensation payment of $3,000 from the state government while those whose homes were damaged will get $1,000.

Photograph of Wallcliffe house in 1902 courtesy of Margaret River and Districts Historical Society Inc.