Builder-Developers Reign as Henzell Sells Kings Beach Site

The Sunshine Coast is turning into a builder-developer-only landscape as a property family sells up its large Kings Beach site thanks to construction costs. Henzell Property Group has offloaded its approved 70-apartment complex site at Kings Beach, Caloundra for $17 million, three years after the project’s approval and site settlement. Henzell Property director Mclean Henzell said he did not think there would be any more pure developers doing multi-storey residential of scale for a while. “It’s no secret the construction market for multi-res has just gotten harder and harder, and we couldn’t get a builder at the right price—and then we couldn’t get a builder at all,” Henzell said. “We’re going to concentrate on townhouses now. There’s a lot more builders in the market for townhouses compared to the multi-res. “This is the next chapter for the next couple of years.” Henzell said apartment buyers were interested in the Caloundra project but ultimately it had to be put on ice due to costs. ▲ Henzell Property Group director Mclean Henzell with The Cove in Pelican Waters. “We had numbers from Tomkins and RCQ, and they were just over budget,” Henzell said. “There’s a lot of builder-developers entering the Sunny Coast at the moment. “Anyone getting projects off the ground in the next couple of years will be a builder-developer ... GVG, RCQ, Habitat, Cube are now building.” The 6167sq m site a couple of blocks from the waterfront was approved for 70 apartments, health care services, office and a food outlet by the Sunshine Coast Council in May 2022. A Mooloolabah developer has now acquired the site and will team with a Gold Coast builder to deliver the project at 139 Bulcock Street and 70–76 Omrah Avenue, Caloundra. Maroochydore-based architecture firm OGE Group has been engaged to refine a staged mixed-use apartment project for the site. ▲ A rendering of the approved apartment complex at Kings Beach. Henzell Group is no stranger to the Sunshine Coast market. The fourth-generation developer purchased 810ha in 1946, which later became the masterplanned Pelican Waters community. While waiting for the construction market to settle at Kings Beach, the group has started work on the second stage of The Cove. Henzell said despite the changes in the construction industry there were still plenty of builders and demand for lower-density projects. “We are very optimistic about the Caloundra area’s long-term future. Our family has been part of its growth story for generations, and we intend to remain so,” Henzell said. “From our perspective, this outcome is a win for Caloundra, a win for future residents, and a logical evolution of Henzell Property Group’s development pipeline. “This sale marks a planned shift away from apartment development in the CBD over the next few years and a renewed focus on delivering high-quality townhouse and lowrise product for the Caloundra region.” ▲ The property at 139 Bulcock Street and 70–76 Omrah Avenue, Kings Beach. Colliers manager for special projects Baydn Dodds said buyer enquiries for the Kings Beach property exceeded activity recorded from a few years ago. “We engaged with more than 80 buyer groups during the campaign,” Dodds said. “Enquiry volumes and the level of engagement were noticeably higher than for comparable Caloundra residential development sites marketed in the previous couple of years. “The approved scheme and the potential for a taller outcome were both useful in framing the site’s potential, but sophisticated developers are very alive to build-cost pressures. “The pricing outcome reflects a balance between view-driven apartment values, rising construction costs and realistic purchaser depth at the premium end.” In July, builder-developer RCQ filed a scheme to replace a strip of shops on the main street of Caloundra with three 13-storey buildings for hotel and apartments. The development at 126-140 Bulcock Street is still awaiting approval from the Sunshine Coast Council. The major changes for the Sunshine Coast suburb follow the sale of multiple properties by businessman Graham McPherson to developers including Henzell and RCQ.

Builder-Developers Reign as Henzell Sells Kings Beach Site

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