Exclusive: Goldfields to scrap 33 Manning apartment development in Brisbane's Milton
National diversified property developer Goldfields has declared it is not able proceed with its maiden Brisbane apartment development, 33 Manning in Milton.
They've struggled to find a builder over the last 12 months, and have engaged buyers in the last 24 hours to hand back their deposits.
Goldfields CEO Lachlan Thompson says the project has become not feasible.
"For the past 12 months, we have been proactively tendering out to, and negotiating with, a select group of builders to secure workable arrangements for the construction of this project. However, due to unprecedented market conditions, we have been unable to secure a suitable builder at a construction price that would deem the project viable.
"Unfortunately, we have had to exercise our contractual rights to terminate all sales contracts in place. Purchasers have been advised of this decision and all deposits will be refunded in full."
Thompson says the Australian property development industry is experiencing a period of significant instability and upheaval.
"Labour shortages, rapid and unanticipated cost escalation, supply chain issues, rising interest rates, and the unavailability of construction contractors (particularly in the South East Queensland market) have each contributed to an operating environment where the above decision became necessary. We are aware that many developments across Australia cannot proceed with well advanced projects due to these factors and have been forced to make similar decisions – it is clear this is an industry-wide problem."
Thompson says notwithstanding the difficulties faced by the industry, Goldfields remains in a strong position with a diverse range of residential, retail, commercial, industrial, and retirement living projects proceeding across the nation.
33 Manning was set to be Goldfields first foray into the Brisbane off the plan apartment market. The project had been a popular one since launching to the market, given Brisbane's incredibly tight supply lines and the reputation Goldfields has across a number of states. They're no strangers to Brisbane either. Currently they have the masterplanned community Hayfield in the heart of Ripley Valley.
Goldfields workbook is full across other states, with their debut high-rise Sydney apartment development, The Bryson of Chatswood, current in market. They also recently branched out to Western Australia, launching a house and land estate near Margaret River.
Earlier this month they completed The Livingstone, just 18 apartments and townhouses in Sydney's affluent Pymble.