Buyers in York Property’s Midwater tower fear delays could see them lose apartments via sunset clauses

Buyers in the troubled Midwater tower fear delays caused by a battle between the developer and builder will see them lose the beachside apartments they’ve waited years to move into. Here’s why

Buyers in the troubled $100 million Midwater tower fear delays caused by a battle between the developer and builder will see them lose the beachside apartments they’ve waited years to move into.

Many buyers signed contracts of around $1.1million for two-bedroom apartments – with larger apartments priced up to $8 million – in 2021.

Unit prices in Main Beach have swelled by as much as 88 per cent since then, meaning the 119 Midwater apartments are potentially worth $100 million or more above their value when contracts were signed.

Buyers in the project do not want their names published as they “don’t want anything coming back on us”.

They said they feared developer York Property Holdings, part of the Heran Group, would ask for more money or terminate the contracts if construction delays continued.

Midwater builder Tomkins Commercial downed tools last Thursday, claiming it had not been paid what it was owed for its work – a claim the developer has denied.

Police were called to the site after York locked the front gates of the site, with some workers inside, sparking a “disturbance” on Tuesday.

Artist’s impression of the Midwater development at Main Beach near Cable Park.

New Queensland laws around sunset clauses for the sale of land were introduced in November, requiring written consent from a buyer before a contract can be terminated, or a Supreme Court order.

However, contracts for unsettled apartments can still be terminated by the seller on the sunset date or three and half years after the contract date.

Sunset dates for Midwater contracts signed in early 2021 fall early next year, with the developer declining to reassure buyers that it will not invoke the clauses.

Among the buyers in Midwater is radio talkback veteran Ray Hadley, who sold his apartment in the nearby Spinnaker tower in July.

Mr Hadley said he was not concerned about the situation and had “complete confidence the build will be completed”.

But not all Midwater buyers share Mr Hadley’s confidence.

Ray Hadley has bought a Midwater apartment. Picture: Justin Lloyd.

One Gold Coast couple, who signed a contract for a two-bedroom apartment for $1.1 million in early 2021, said the completion date had already been pushed back three times before the current dispute, without explanation.

They buyer said the project started eight months late, after delays to the basement excavation.

The couple had planned to live in the apartment once it was completed at the end of last year.

“It’s frustrating,” he said.

“Everyone is approaching the sunset clause and there’s nothing anyone can do about it.

“The developer can string it along and then raise the price and they haven’t given any assurance that they’re not going to do that.

“The apartment is probably worth $1.7-1.8 million now – we don’t want to lose that.”

The couple ended up buying another apartment to live in while they were waiting, and one off the plan in another project – but not all buyers are in a position to hedge their bets.

“My wife and I have been out of the property market now, so it’s cost us financially,” another local buyer said.

“We sold our properties so we would be ready to settle this when it was due – now we’re renting.

“It was to be our forever home, our dream home.”

Builders collecting tools and equipment, being watched by security, and leaving the Midwater building site at Main Beach. Picture Glenn Hampson

A spokesman for York Property declined to answer questions about previous delays to the development and would not say whether or not the company intended to invoke sunset clauses if they became available.

The spokesman would not clarify whether any apartments were still for sale and, if so, what they were priced at.

Earlier this week York said “sales have been, and continue to be, strong”, but the Midwater website said it was sold out.

Originally published as Buyers in York Property’s Midwater tower fear delays could see them lose apartments via sunset clauses