Richlist developer warns of looming building crisis

One of Brisbane’s most powerful developers admits even he can’t secure a builder to start his next project. Plus, take the first look inside his latest riverfront development. SEE THE VIDEO.

One of Queensland’s most powerful developers admits even he can’t secure a builder to start his next Brisbane residential project, which was launched almost two years ago.

Kevin Seymour of The Seymour Group says he doesn’t know when construction will start on the sold out 26-apartment building called ‘The Peninsula’ at 70 Oxlade Dr, New Farm because “no builder will commit” due to the labour shortage in the state’s construction industry.

Veteran Queensland developer Kevin Seymour. Picture: Liam Kidston.

“You can’t get a builder to lock in a price,” Mr Seymour said. “Secondly, the way labour is, no one knows how long a job will take to complete. The current state of affairs is unprecedented in my 55 years in the industry.”

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Mr Seymour, a Queensland richlister, said he was seeking prices from a number of builders, but “they all want to pass the risk on to us”.

Kevin Seymour, Chairman of Seymour Group, Mark Baker, CEO of BESIX Watpac, Steven Miles, Acting Premier, Grace Grace, and Wade Cummins, general manager QLD BESIX Watpac at the opening of ‘The Oxlade’. Picture: Annette Dew.

“Builders are too gun-shy after all the money they’ve lost over the past three years,” he said. “I’m worried about the future of the industry. The biggest problem is the cost to the consumer because developers can’t absorb the (rising) costs — it’s got to be passed on — and the cost of housing is going to get totally out of control.”

A render of The Peninsula at 70 Oxlade Drive, which is waiting to be built. Picture supplied.

He said the state government’s public infrastructure projects due to start next year — plus the construction required for the Olympic Games venues — would “suck up all the labour”.

“We’re looking at some $8 billion worth of hospitals, prisons, major road works, then the Olympics,” he said.

The view from one of the apartments in The Oxlade. Photo: Scott Burrows.

“The government will come to realise they won’t be able to lock in prices (with builders).”

It comes as another project of Mr Seymour’s — The Oxlade at 80 Oxlade Drive — finally reaches completion after three years of construction, which was plagued by delays.

The 30-apartment building on the river was launched in 2019 and was expected to be completed in late 2021.

The foyer of The Oxlade in New Farm at night. Photo: Scott Burrows.

Residents have started moving in to The Oxlade, which features 6-star hotel facilities, a concierge, a rooftop infinity edge pool and a 14-seat cellar with a chef’s kitchen attached for dinner parties.

REAL ESTATE: The view from the rooftop terrace of The Oxlade in New Farm. Photo: Scott Burrows.

The project cost $50 million to build, which was deemed expensive at the time, but Mr Seymour said it would cost $100 million to build to the same standards now.

“I don’t think you’ll see anything like this in the foreseeable future,” Mr Seymour said. “It would be too labour intensive.”

The foyer of The Oxlade in New Farm, which has just been completed after three years of construction. Photo: Scott Burrows.

Penthouses in the project sold for about $7m each at the time.

“We could make $30 million more if we sold (all the units) today,” Mr Seymour said.