The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Interested in a Corporate TUD+ Membership? Access premium content, site tours, event discounts and networking opportunities
Interested in a Corporate Membership? Access exclusive member benefits today
Enquire NowEnquire
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
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
9
print
Print
OtherRalph NicholsonTue 19 Jul 22

Soaring Costs Kill Plans for Gold Coast Super Tower

Central Equity Dumps Tower Hero

Melbourne’s most prolific high-rise developer has abandoned plans to build a $500-million luxury apartment tower on the beachfront at Surfers Paradise.

Central Equity blamed “turmoil” within the Queensland building industry for its decision to shelve its 56-storey Pacific One tower development.

The decision comes less than a year after Central Equity announced plans for the 486-apartment tower at Garfield Terrace, Northcliffe, with much fanfare.

“As a result of ongoing discussions with builders and quantity surveyors regarding the global supply-chain turmoil and Queensland construction industry crisis, Central Equity has decided not to proceed with the development of their Pacific One apartment tower on the Gold Coast,” the developer said in a prepared statement.

“The malaise facing builders, including staff shortages and supply-chain disruption, had resulted in the unprecedented escalation of construction costs for developers, making Pacific One economically unviable,” the statement said.

It was Central Equity’s first foray outside Melbourne, and into the booming Gold Coast apartment market. They had completed 85 projects in 35 years until now.

“The company feels strongly that it is better to move proactively now, when faced with such economic turbulence.”

The developer, quoting “industry sources”, said unit prices needed to rise by 20 per cent to cover increased labour and building costs.

Central Equity said there had been no issues with demand for the apartments, and all deposits would be returned to buyers and prospective buyers. It would not say how many apartments, including 184 planned as service apartments, had been sold.

Central Equity said it remained committed to expansion in Queensland and would retain the beachfront site.
▲ Central Equity said it remained committed to expansion in Queensland and would retain the beachfront site.

Construction of the tower, designed by Brisbane-based architectural firm Marchese Partners, had been expected to begin this year with Ray White appointed to market the one, two, three and four-bedroom apartments. The design included two swimming pools, private dining, gymnasium, and yoga studio.

Gold Coast sources say news of the abandoned project “will rock the local market”. The cancellation follows the shelving of other planned towers along the booming glitter strip, now feeling the pressure of its limited number of building contractors, ever-rising construction costs and supply-chain delays.

Despite this, Central Equity said it remained committed to expansion in Queensland, and would retain the site on the corner of Frederick Street and Garfield Terrace.

Ray White Surfers Paradise Group chairman Andrew Bell said Central Equity’s decision was a rational and mature one.

“Central Equity are being prudent in holding the site for future development,” Bell said.

ResidentialGold CoastAustraliaConstructionConstructionSector
AUTHOR
Ralph Nicholson
More articles by this author
ADVERTISEMENT
TOP STORIES
Anthony and Paul Mancini HERO TEMP
Exclusive

Adapt or Die: How Mancini Pulled Back from the Brink

Leon Della Bosca
8 Min
Elanor Investors Tweed Mall masterplan
Exclusive

Tweed Marks Time as $900m Mall Redevelopment Goes Quiet

Renee McKeown
6 Min
High-density residential construction in Melbourne
Exclusive

Stabilising Conditions in Melbourne Bring Hopes of Improved Feasibility

Leon Della Bosca
6 Min
QBCC project trust accounts hero
Exclusive

Developers Warned as Commission Cracks Down on Subbie Pay Scheme

Clare Burnett
7 Min
Urban Infill site at Tonsley SA
Exclusive

SA Grapples with ‘Development Killer’ Carparking Law Changes

Leon Della Bosca
7 Min
View All >
the view to Victor Harbor in Greater Adelaide.
Residential

Bill Unlocking 61,000 Home Sites Passes in South Australia

Renee McKeown
Anthony and Paul Mancini HERO TEMP
Exclusive

Adapt or Die: How Mancini Pulled Back from the Brink

Leon Della Bosca
Balmain Leagues Club EDM
Residential

Perifa’s Ex-Balmain Leagues Plan Clears Final Hurdle

Clare Burnett
The site that will be Rozelle Village had been in limbo after the club shut and its former owners became locked in a leg…
LATEST
the view to Victor Harbor in Greater Adelaide.
Residential

Bill Unlocking 61,000 Home Sites Passes in South Australia

Renee McKeown
2 Min
Anthony and Paul Mancini HERO TEMP
Exclusive

Adapt or Die: How Mancini Pulled Back from the Brink

Leon Della Bosca
8 Min
Balmain Leagues Club EDM
Residential

Perifa’s Ex-Balmain Leagues Plan Clears Final Hurdle

Clare Burnett
3 Min
Coliving Chippendale EDM
Residential

Plans for $31m Co-Living PBSA in Sydney CBD Revealed

Clare Burnett
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/soaring-costs-kill-plans-for-gold-coast-super-tower