Plans for a 90-apartment tower overlooking the newly refurbished Hanlon Park at Stones Corner have won approval and the project will be launched to market next month.
Gardner Vaughan Group plans to break ground on the $40-million Stonebrook in mid-2023 to complete by the end of 2024, despite an ‘unsteady’ construction industry.
Construction price fluctuations are hampering developers across the country, but GVG pivoted to mitigate risk in-house with a developer-builder-manager model, director of finance and sales Sam Gardner said.
“There remains unsteadiness in the construction realm and I am hearing of more and more projects being parked … the construction team certainly has the challenge of managing this market,” he said.
“We currently have $130 million of projects under construction, and this project will add $40 million to that.
“We are in a unique position within the development and construction industry where our construction department is the exclusive builder to Gardner Vaughan Group developments, and Gardner Vaughan Group as a developer is the exclusive client to our construction department.
“Our construction department is not fighting for margin, and can focus on managing volatilities with the developer.”
Gardner said the “open book structure” allowed the developer to incorporate real-time data in strategy and pricing.
“Should construction prices go up between tender periods, we can discuss this between the departments to value-engineer some of the more expensive features out of the development to reduce cost, or we can increase sale prices on the properties to improve income.
“It's very important that the developments are not launched too soon, as a sellout will rule out your option to increase sale price without brand damage.
“On the other hand, it's important that you achieve a presale level for external project funding and to demonstrate price support. It is one big balancing act, communication is the key to keeping that balance.”
Almost half of the apartments are already sold ahead of the project being launched to market next month.
The nine-storey tower is being developed with an electrical backbone to enable individual owners to fit charging stations for electric vehicles after completion—a feature the developer is planning to roll out across future developments.
The development will also feature a heated pool, function room and gym at ground floor, private dining room on the rooftop level, and pet-friendly apartments.
A number of Queensland developers have developed their own in-house construction arm to mitigate risk in the market, including Sunshine Coast developer Cube Developments, and Brisbane’s Aria Group, who launched its own construction arm this year to complete its $50-million apartment project in Brisbane’s Kangaroo Point after the collapse of builder Condev.
The developer employed former Condev staff and subcontractors who had been working on its sold-out 12-storey Riviere project under its new arm.
