Buyers ‘ripped off’ after hundreds of unit contracts cancelled
Anxious buyers say they feel “ripped off” by decision to cancel hundreds of sale contracts in a mega apartment tower.
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Anxious buyers say they feel “ripped off” by a decision to cancel hundreds of apartment sale contracts in a residential tower in Brisbane’s troubled Queen’s Wharf precinct.
Investors have taken to a property forum on online platform, Reddit, demanding answers after being advised of the decision, with some asking; “Has anyone got their deposit back yet?” and “Who is to say they won’t ask for another increase before the next sunset date?”
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Star Entertainment’s joint venture partners in the precinct — Chow Tai Fook Enterprises and Far East Consortium — are seeking a 12.5 per cent price increase to complete apartments at the tower, some which are priced over $3m.
Chow Tai Fook and Far East concede they cannot go ahead with the tower under current cost and time constraints.
The tower includes 819 luxury apartments next to the Queen’s Wharf casino and entertainment precinct.
The inclusion of a ‘sunset clause’ allowed the partners to cancel the contracts if construction extended beyond a specified deadline.
Many of the affected investors, who paid substantial deposits of more than $400,000, are now scrambling to understand their options and the financial impact of the delay.
“Anyone else got the offer to terminate your contract under the sunset clause to resell the apartment for an increased price for a cash grab they dont want to miss out on when preselling apartments during covid?” one of Australian Property Chat’s 177,000 members wrote.
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“I received termination of contract notice as well. Not sure what our rights are other than the 2 options — refund or new contract at 12.5 per cent increase. Who is to say they won’t ask for another increase before the next sunset date? If current tenants terminate they’ll have to resell at higher price, which is unlikely given what’s happening and delays, or ask for yet another price hike from ones that do stay on.”
Another member asks: “Am feeling quite ripped off by this whole experience! Has anyone got their deposit back yet??”
A Queens Wharf Residential spokesperson said more than 445 buyers had re-signed after being advised of the decision in early December.
“We are arranging refunds of the deposits to any buyers who wish not to proceed,” the spokesperson said
“In addition to this, we are paying the buyer any interest earned on the investment of the deposit, in line with banking requirements, this can take at least 30 days to redeem the investment.
“We are aware of other developers who in the current climate have found themselves increasing prices or not proceeding with the project.”
It comes as the future of the financially-stricken Star hangs in the balance as it edges closure to a collapse.
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