Construction expected to restart at Falkinder Ave Paradise Point after contractor liquidations cause delay
Work on a stalled 35-apartment project in exclusive Paradise Point is set to restart shortly after problems with subcontractors left it idle for weeks. Read the builder’s explanation
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The builder of a stalled 35-apartment project in exclusive Paradise Point says work will restart shortly after problems with subcontractors left it idle for weeks.
The three-storey, 35-unit project at Falkinder Ave was approved in 2017 and was initially slated for completion in early 2020.
Apartments in the luxury development started at $449,000 when first hitting the market in 2018, but sharp price increases have seen current prices of at $785,000.
An easy stroll to popular Paradise Point Parklands and across the road from shops and cafes, the apartments were among a handful of new builds in the growing waterfront suburb.
But in recent weeks, the site has been deserted, with its front gate padlocked.
Builder Matthew Xihlaga said the project had stalled after three subcontractors went bust, leaving the builder in the lurch.
“Some contractors have gone into liquidation, which has caused the delays,” he said.
“All contractors will be back on site this week. We’ve got the same financiers funding the project. There’s so much invested.”
The project developer is The Development Collection, directed by transport industry heavyweight, and Paradise Point resident Joanna Malec.
Ms Malec and husband Matthew are frequent traders of exclusive Gold Coast properties, having bought and sold numerous Sovereign Islands mansions, including two to billionaire Clive Palmer.
Mr Xhilaga is director of Falkinder Ave Pty Ltd and also holds its Queensland builder licence for maximum annual revenue up to $12 million.
He said the delays had been out of his control and he’d had to absorb the increased costs.
“It’s just unfortunate in this industry that contractors say they can do a job but then go and take on four or five other projects – and the next thing is you get a letter from their liquidator,” he claimed.
“It’s a shame because contractors take on other projects and then go into liquidation and it gives you a bad name.
“Buyers are getting quality for less than what the market value is.”
Sales agent Edin Kara of Ray White said tradespeople were expected back at the site by the end of this week, with completion expected within two months.
“We had a meeting yesterday and there were a few changes made,” he said.
“The workers are going to be back on site by the end of the week – they would have been there on Monday except for the weather.
“Everyone has been paid.
“It was locked up for a few weeks while they were restructuring and getting a few new tradespeople, but my understanding is that completion will be within two months.”
Mr Kara said 11 of the 35 apartments were still available to purchase and the developer was honouring early contracts at the lower prices.
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