Quentin Tod: Major Surfers project hits a brick wall

A major Surfers Paradise apartment tower project, on the boil since 2015 and more than 50 per cent sold, has fallen victim to a softer market.

A MAJOR Surfers Paradise apartment tower project, on the boil since 2015 and more than 50 per cent sold, has fallen victim to a softer market.

A cautious Citimark group has shelved its 46-floor Markwell Residences tower, which was intended to provide what was termed ‘a luxurious urban lifestyle.’

The move’s been made despite Citimark achieving sales worth more than $100 million in the $180 million project from 2015 to 2017.

It stopped marketing in 2017 on the back of those sales while it pursued funding and hired a builder.

Both of those goals were met – funding was sourced offshore and Hutchinson Builders was awarded the construction job.

Citimark relaunched Markwell Residences last October but into a slowing market and apparently has run into a sales brick wall.

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Citimark Properties' Markwell Residences project at Surfers Paradise. Photo: Supplied

The Chinese Government’s clamp on residents sending money offshore won’t have done Citimark any favours, throwing a cloud over the ability of contracted buyers to settle and virtually halting new deals.

The private group appears now to have decided the financial risk with the Markwell is too great and it’s going to land-bank the site and perhaps revisit developing it down the track.

Citimark bought the 2020 sqm holding, on the corner of Markwell Ave and Surfers Paradise Boulevard, in 2014 and went on to get approval for a tower with 210 apartments.

Markwell Residences was to have three classes of apartment luxury – classic, premier and grandeur – and to include a recreation retreat, a 1200 sqm oasis with cafe, three thermal baths, a day spa, yoga deck and fitness club.

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Generic shots of apartments in Surfers Paradise. Surfers Paradise tops the country for the most number of units sold. Pic Jono Searle.

Citimark relaunched Markwell Residences last October but into a slowing market and apparently has run into a sales brick wall.

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Citimark is believed to be in the process of addressing the question of buyer deposits – some offshore buyers put up 20 per cent.

The Gold Coast hasn’t exactly been a happy hunting ground since the Brisbane group’s principals, Robert Pullar and Angus Johnson, came to town with great enthusiasm early in 2015.

They bought a Chevron Island site for $3.75 million and gained approval for a 21-level tower which never has been launched.

They went on to take out a conditional $20 million contract on what’s known as the Thrifty car rental site, across the road from the Markwell site on the southern side of Surfers.

Plans were drawn up for twin towers, one of 67 levels.

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When Citimark’s application for development approval dragged, the group sought a contract extension.

The seller, Melbourne businessman Alan Ali, refused the request.

In hindsight, that ‘no’, given what’s happened with Markwell and the market, might have been a blessing in disguise for Citimark.

Meanwhile, it’s likely that Citimark’s sales slump at Markwell will not surprise market watchers and other developers who also are finding buyers much harder to source.

It might also reinforce a view that some developers supplying Gold Coast apartment sales figures to researchers are inflating those figures.