Gold Coast development: Long-approved tower projects delayed as developers struggle to make them stack up

The Gold Coast’s planning boss is having meetings with developments “almost every week” where he’s getting news which does not bode well for the future of development in the city.

Gold Coast tower projects pitched and green-lit years ago are being kicked into the “long-grass” as developers and site owners try and wait out the current market conditions.

The first sod will not be turned on a raft of projects earmarked for high-profile sites until the last years of this decade as developers push their developments back further and further.

City planning boss Mark Hammel said the situation had intensified in recent months, with both recently approved projects and those dating back to the mid-2010s, being delayed because of economic conditions, the cost of materials and a shortage of available builders.

“I’m having meetings almost every week right now with developers who have discovered since they got their approvals that costs have gone up and they need to re-do the approval to make it either cheaper or add more dwellings into it to ensure that it stacks up,” he said.

Cr Mark Hammel.

“This is going to be a problem because many are finding that once they get approval and do detailed designs that things have moved and that have to go back to the drawing board to ensure it stacks up.

“The last thing we want is builders and developers unable to move forward with projects which were never going to work and we have seen a lot of developers go bankrupt in the past 18 months and this is a trend that needs to stop.

“It’s not even just recent projects, there’s been a significant increase recently in old approvals having to go back and make changes because they were never going to be able to happen.”

The delays come despite the growing pressure on the city’s housing market, with more than 15,000 people moving to the Gold Coast annually and a record number of cranes in the sky.

Artist impression of Aquis' The Minnette towers, which were planned for Pacific Point in Surfers Paradise. The site’s new owners have delayed the project.

Among those delayed in recent weeks:

* A proposed two-tower residential project which Hong Kong developer Tony Fung which was pushed back after being sold to high-profile businessman and horse trainer John Camilleri.

* A proposed medical centre for Southport’s Smith Street which was first approved in December 2013 and still yet to be built.

* The proposed subdivision of an Ashmore property on Currumburra Road to build a new house, with its owners citing the pandemic, “significant supply and labour shortages” and “the unexpected increase of costs and the approval time frames”.

* Village Roadshow’s proposed rustic tourist glamping attraction earmarked for a site next to Movie World which was first pitched nearly a decade ago.

* A proposed 31-storey tower in central Surfers Paradise on the former Swingin’ Safari site.

The Thornton Street site’s new owner were given a further four years to deliver the project.

The former Swingin' Safari site. A tower planned for the site has been delayed yet again.

It was previously approved six years ago and was already given an extension during Covid.

“As Council would be aware the currency period of the approval is to lapse,” its town planners said in a letter to council.

“In this case, the applicant purchased the property in 2021 and at this stage intends to commence the construction works and bring the development to completion.

“Therefore, we are requesting a further four year extension of the currency period.

“For a project of the approved scale (being 31 levels), four years is considered sufficient time to enable sourcing construction materials, confirm finance, and to complete construction works”.

Queensland Master Builders Gold Coast boss Adam Profke said a shortage of tradies meant many projects were being put on the backburner.

There probably isn’t enough cranes in Australia unfortunately (for the amount or projects which have been approved for the Gold Coast in recent years) which is a strange anomaly,” he said in May.

“The reality is we are property at the upper limit of the industry capacity after the record approvals of projects in the past four years.”