Buyers in Descon Group’s delayed Waverley Residences on Gold Coast left in the dark on status

More than 60 buyers in a Southport apartment building are no closer to knowing if they’ll ever move in, four months after a major builder went into liquidation.

More than 60 buyers in a Southport apartment building are no closer to knowing if they’ll ever move in, four months after their builder went into liquidation.

Waverley Residences was originally due for completion in May 2022, but was plagued by repeated delays and price increases before the eventual liquidation of Descon Group Australia in May this year.

Lenders for the project, Austar Finance, appointed receivers soon after to secure their investment with development company Busikon, which shares a director with the collapsed builder.

New reports from liquidators have revealed the breathtaking scale of the collapse of Descon Group and its related companies, which between them have reported debts of more than $390 million.

Neither the receivers from PriceWaterhouse Coopers nor directors of Austar Finance responded to questions from the Gold Coast Bulletin.

It is understood two builders have offered to complete the project, but whether or not original contracts will be honoured is likely to come down to insurance and defects liability issues.

In the meantime, scores of buyers say they have been left in the dark, their lives in disarray.

Like many other buyers in Waverley, Luke Hill signed up for his first home in the project in December 2021, for $523,000, after being told it was about six months from completion.

“It got delayed and delayed and then in November 2023, they increased the price,” he said.

“From there we were stuck because they wanted another $125,000 – so I exited the contract and we had to find another place.”

Although free of the uncertainty faced by those with ongoing contracts, Mr Hill said the $125,000 represented the capital gains he would have achieved if the apartment had been completed.

He also wasted more than a year waiting in vain for construction to finish.

“I had to move in with my parents because (the developers) they told me it would be ready so I finished my lease,” he said.

“The big disappointment for me was the way we were continuously told it was going to be ok – they did everything to keep us in.”

Dayal Kumarage and his son Dinkuk contracted to buy an apartment for $530,000 in June 2021.

“My son is studying dentistry in Griffith University and daughter is working in Gold Coast Hospital, so our purpose of purchasing the two-bedroom apartment was for both of them to stay together and save two rents from mid 2022,” Mr Kumarage said.

“However, completion day kept extending and in February 2024 we received a letter to sign a new contract for a higher price which we have declined to sign.

“My children are still renting.”

Taka Osaki signed up in October 2021, with the hope of moving his family from Sydney to the Gold Coast.

“I envisioned the apartment as a sanctuary for my family, a place where we could enjoy peace and privacy,” he said.

“Unfortunately, what I’ve experienced instead is a nightmare.

“This has made it incredibly difficult to feel at home or even commit to our living situation. “The basic need for a secure place to live, which I believe is as essential as food and oxygen, seems to be ignored.”

Mr Osaki said he was still hopeful of receiving the property as promised in the original contract.

“This ongoing issue has taken a toll on both my finances and personal well-being,” he said.

“With rising rents and inflation adding to the strain, the uncertainty and stress over the past two years have been overwhelming and has deeply disrupted our daily lives.”

Originally published as Buyers in Descon Group’s delayed Waverley Residences on Gold Coast left in the dark on status