The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
7
print
Print
OtherPhil BartschMon 17 Apr 23

Brisbane Tower Mothballed Thanks to ‘Volatile’ Construction Sector

Keylin Spring Hill Development Scrapped hero

Volatility in the embattled construction sector has forced a Brisbane-based developer to mothball a $140-million apartment tower project touted to “lead the renaissance” of a city fringe suburb.

It is understood sales contracts had been signed for more than 80 per cent of the 121 apartments in Keylin’s Oria development.

Construction was due to begin this year on the Art Deco-inspired tower at Spring Hill on the Brisbane CBD’s northern doorstep.

But in the face of soaring construction costs and crippling labour shortages increasingly putting the feasible delivery of projects at risk, the developer has opted not to progress with the project until conditions improve.

“Australia’s construction sector remains unstable and, despite our best efforts and rigorous tender processes, we have been unable to secure a contractor to deliver Oria,” Keylin managing director Louis Cheung said in a statement.

“As a result, we have made the incredibly difficult decision to not proceed with Oria Spring Hill. It goes without saying that we are deeply saddened. 

“Our project team has worked tirelessly to mitigate risks wherever possible, however Australia’s construction sector is too volatile in the current market.”

Cheung said all purchasers had been personally informed this week and full deposits would be returned.

“Keylin will revisit the site in the future when market conditions support the feasible delivery of premium projects,” he said.

Keylin's 15-level Oria development at Brisbane's Spring Hill has been mothballed.
▲ Keylin's 15-level Oria development at Brisbane's Spring Hill has been mothballed.

The latest move follows Keylin’s decision last year to scrap the other half of what was to be a twin-tower development on the 3700sq m site fronting Brisbane’s Victoria Park redevelopment. It was earmarked to house the city’s first Movenpick Hotel with a total of 96 suites and a daily “chocolate hour”.

At the time, Cheung said rising supply costs and labour shortages were impacting every facet of development nation-wide.

“We have decided to proceed with a competitive construction tender for Oria to provide the best opportunity to secure an acceptable construction outcome,” he said. “Secondly, we have made the decision not to proceed with the hotel on the site.”

Keylin paid $9.25 million for the L-shaped site at 447 Gregory Terrace in mid-2020.

Launching the project in 2021, Keylin declared Oria would “uphold the grandeur and elegance of Spring Hill’s rich architectural heritage”.

“Atop a stunning vantage point offering sweeping vistas of the city, Victoria Park and Mt Coot-tha, Oria is bringing the character back to apartment living by featuring a bold design that pays homage to the Art Deco style woven throughout Spring Hill, allowing Oria to stand among the locale’s multitude of heritage-listed buildings,” it said.

ResidentialHotelBrisbaneAustraliaSector
AUTHOR
Phil Bartsch
The Urban Developer - Writer
More articles by this author
ADVERTISEMENT
TOP STORIES
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
Traders in purple Northsea Wollongong EDM
Exclusive

Affordable Housing Bonus Drives Mixed-Tenure Momentum

Clare Burnett
6 Min
Exclusive

Industry Stoush Looms Over Construction Code Pause

Patrick Lau
4 Min
View All >
Sponsored

Future-Proofing Olympic Venues Starts Right Now

Partner Content
An artist's impression of Conquest's residential building over then new Queensbridge Shopping Centre
Development

Conquest Doubles Down on Eastlakes Apartment Plan

Leon Della Bosca
Landmark's amended proposal for a Macquarie Park tower is on exhibition
Residential

Landmark Plots Doubling Height of Mac Park Tower

Patrick Lau
Amendments to the LEP prompted the bid for a big increase in height and homes for the scheme in Sydney’s north-west…
LATEST
Planning

Future-Proofing Olympic Venues Starts Right Now

Partner Content
6 Min
An artist's impression of Conquest's residential building over then new Queensbridge Shopping Centre
Development

Conquest Doubles Down on Eastlakes Apartment Plan

Leon Della Bosca
3 Min
Landmark's amended proposal for a Macquarie Park tower is on exhibition
Residential

Landmark Plots Doubling Height of Mac Park Tower

Patrick Lau
2 Min
Macedon Ranges
Residential

State Waves Contentious 1360-Home Victorian Estate Ahead

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/brisbane-tower-spring-hill-plans-mothballed-construction-crisis