Glenelg’s Quayview on Adelphi apartment buyers stuck in limbo as development firm seeks more money as construction costs skyrocket

Buyers of a prestigious waterfront Glenelg apartment building have been asked to give their own money to get the complex finished as construction costs skyrocket.

Developers of a prestigious seven-storey apartment building at Glenelg are pleading with prospective owners for more money as construction costs skyrocket by 40 per cent over the past two years.

Work on the waterfront Quayview on Adelphi has “slowed”, leaving about 120 buyers in limbo and Barrio Developments scrambling to raise cash to finish the project, which is nearly complete.

Barrio managing director Glen Vollebregt said some “very gracious buyers” had agreed to pay an added fee to help get the 58-apartment waterfront complex finished, while others had agreed to “on-sell” for the potential for a bonus payment.

“It’s been an amazing collaborative effort with our builder, our project team, our patient apartment purchasers and we are just about to complete the building,” Mr Vollebregt said.

An artist impression of Quayview on Adelphi. Picture: Barrio Developments.

Quayview on Adelphi will have waterfront views. Picture: Barrio Developments

“We’ve had some purchasers offer to on-sell their apartments with us, whereby they will get their deposit, interest and a generous bonus fee of any upside to the sale. There are going to be some early purchasers who become well over half a million dollars richer at settlement because of the uplift in their apartment value since they contracted them.”

He declined to say how many people had chosen to sell their apartment, how much money purchasers had contributed and if they would get that money back.

“We have kept every single contract in play, whereas many developers – particularly those on the east coast – would simply terminate contracts and resell for a profit, but we have kept and honoured all contracts,” Mr Vollebregt said.

“It’s cost both Barrio and our builder a mind-blowing amount more to deliver the building with rising construction costs, but we have pushed through and are now moments from completion.

“Construction certainly slowed a couple of months ago, but thanks to a resilient team has never stopped, and we are very close to completion.”

Harris Real Estate agent Guy Barrett said the cost of construction had increased by 40 per cent in the past two years.

“The developer said we need to try to raise revenue,” Mr Barrett said.

Quayview on Adelphi. Picture: Barrio Developments.

Quayview on Adelphi. Picture: Barrio Developments.

“They are a very determined person, and he’s absolutely committed to getting the project finished. To do that obviously requires more money, and one of the ways of doing that is trying to raise revenue through either effectively buying the property back and selling it for more because the market has gone up so much, or the person contributes an increased amount which is a percentage of each apartment cost.

“We were hoping they would all be moving in months ago. The point we’ve got across to every single person – particularly the buyers – is that nobody wins from this situation.”

Mr Barrett added the inflating construction costs was a “100-year-type event” – affecting developers across the whole world.

“When build costs go up at something like 40 per cent in two years, that is bonkers,” he said. “That’s unheard of in history. This is literally a worldwide phenomenon.”

Mr Vollebregt said he had originally hoped to finish construction by late 2023, but was “working hard to try to have people in their apartments by this Christmas”.