Buyers in $100m Midwater Main Beach spooked after Heran Group cancels Brisbane project contract

Buyers in a troubled $100m apartment tower fear the developer is poised to cancel their 2021 contracts so they can resell the beachfront apartments at 2025 prices. Read why they’re angry

Buyers in a troubled $100m Gold Coast tower fear the developer is poised to cancel their 2021 contracts so they can resell the beachfront apartments at 2025 prices.

Purchasers in Midwater at Main Beach were told they’d be able to move in at the end of 2023, but are still waiting.

The delays mean the pre-sale contracts are approaching dates where a sunset clause could be invoked, legally allowing them to be scrapped if construction has not been completed.

Many of the buyers sold existing properties after signing their contracts, missing out on three years of record property gains, with many also shelling out for expensive rent.

Some have retired since signing up and have no opportunity to make up for any lost money.

Midwater’s developer York Property – a subsidiary of Heran Group – has repeatedly refused to rule out cancelling existing contracts.

Increasing buyer concerns are reports from buyers Heran cancelled contracts for another project in Brisbane’s Mango Hill, where some waited three years for a move-in day that never came.

Midwater buyers paid between $1m and $8m in 2021, with Main Beach property values soaring in the years since, giving the developer a hefty incentive to put the 119 apartments back to market.

Despite the project being widely advertised as “sold out” as far back as 2022 – the site is still plastered with for sale signs and invitations to view display apartments.

Buyers in Midwater Main Beach, which was touted as “sold out” but is still advertising for new buyers. Picture: Glenn Hampson

Work on the 40-storey Midwater tower stopped completely for two months late last year after an explosive payment dispute with the builder, which saw police called to the site and is still making its way through court.

Sarah and Ben Wallace put down more than $200,000 for their Midwater apartment in 2021, and were told it would be ready to move in by October 2023.

“We took the risk – which I feel was a huge support for the developer because they can’t get finance for their development unless they have sales,” Ms Wallace said.

“When they stopped work, the first we heard about it was when we saw it in the paper.

“I understand things happen, there are disputes with builders, but not giving us any certainty or communication – it’s just bad form.

“They need to tell us what they’re going to do, to put on their big boy pants and act with some sort of ethical conduct.”

Auckland residents Darren and Mania Young quit their jobs, sold a business and offloaded a home in anticipation of moving across the ditch to the Gold Coast for their retirement.

Now they’re forking out precious retirement savings on rent, with moving plans in limbo.

“If we contact a lawyer, it would be hard because they haven’t done anything, have they?,” Mr Young said.

”What can the lawyer do? (the developer) hasn’t committed any crimes or done anything wrong, and they’re quite entitled to invoke the clause.”

Builders collecting tools and equipment, being watched by security, and leaving the Midwater building site at Main Beach in September 2024. Picture: Glenn Hampson.

Queensland laws around sunset clauses for the sale of land were introduced in November 2023, requiring written consent from a buyer before a contract can be terminated, or a Supreme Court order.

However, contracts for unsettled apartments can still be terminated by the seller on the sunset date or three and half years after the contract date.

Lorna Preston and her young family are among those caught out by the perfectly legal practice, having bought into Heran’s townhouse development at Mango Hill three years ago.

The family enrolled their kids at the suburb’s daycare and primary school in anticipation of moving in, only for the contract to be cancelled without warning in February.

“It’s been very stressful, very expensive and disappointing,” Ms Preston said.

“And there was a lack of concern, a lack of willingness to work with us – we didn’t even get the chance to re-sign the contract at a higher price.”

Sunset dates for Midwater are expected to begin falling as early as May.

Another Midwater buyer, a successful local businessman who hoped to retire to his new Midwater home, has instead kept working while paying a hefty weekly rent.

“We sold our existing property as we didn’t want to get in a position where we had to settle on the new apartment without having sold our property,” he said.

“This was our retirement plan – we feel frustrated, angry, let down.

“Rent is just dead money to me, if I had known this was going to happen I would have bought another property.”

Heran Group took on the build of its Midwater project amid a stoush with original builder Tomkins. Picture: Glenn Hampson.

York Property’s Shane Heran was asked about whether the company planned to honour original contracts; why it had created display apartments for a “sold-out” project; what the expected completion date was; how progress on Midwater compared to this time last year; and what plans he had to address off-plan buyers’ concerns about lost capital gains if their contracts were ditched.

In response, he said: “We have been exercising our best endeavours to progress the Midwater project in a timely manner.

“However, there are a number of moving parts which need to be finalised including the timetable for completion and budgetary considerations.

“Once all items have been finalised internally, we will be in a position to provide buyers with a detailed update in relation to the Midwater project.”

Originally published as Buyers in $100m Midwater Main Beach spooked after Heran Group cancels Brisbane project contract