The Sinclairs were devastated to find their contract had been terminated and a higher price offered to them to keep the property.
A retiree whose off-the-plan apartment contract was terminated and then increased by $1.2m more has issued a stark warning over little-known sunrise clauses.
Retiree Daniel Sinclair was asked to pay $3.8m for an off-the-plan three-bedroom apartment at the Ruby Ruby development in Brisbane that he had signed on for at $2.6m – a contract that was terminated just days before Christmas under a clause that allows developers to cancel if construction doesn’t start by a set date.
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An artist impression of one of the apartments in Kokoda Property’s ‘Ruby Ruby’ development in Milton.
In its wake, Mr Sinclair warned all prospective buyers to scrutinise contracts more carefully than ever in the current climate.
“The sunrise clause is really called ‘latest date’. If it’s more than a year in the future then don’t sign,” he warned.
“Do not buy off the plan unless a builder is in place,” he said, “…and place a clause that if the builder pulls out then you can too.”
Asked if he would buy an off-the-plan unit again, Mr Sinclair said he now preferred to buy from developers that were also builders of their own complexes.
“We would never buy off the plan unless it was Aria or Mosaic – must be a developer builder manager,” he said.
But he said many buyers were in an impossible position in the current climate.
“Trouble is you want to buy early to get the best apartment at the best price, so you are stuffed either way,” he said.
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Kokoda Property Group cited skyrocketing construction costs, severe material shortages, limited contractor availability and “unreasonable pricing practices” for its changes.
Mr Sinclair said he was offered a new contract which was a devastating 46 per cent higher than his previous price – working out to about $27,000 per square metre.
“Tell ‘em they’re dreamin’,” he said, referencing the famous line from The Castle.
“That extra $1 million was meant to be shared with our two married children and two grandchildren,” Mr Sinclair said. “Our retirement will now be a little tighter.”
The Sinclairs had sold their business last year specifically to fund their retirement apartment dream and are now listing their current house for sale.
They were given just three weeks to decide whether to accept the revised pricing or walk away with their $257,000 deposit refunded.
Kokoda Property Group exercised contractual rights to terminate existing sales contracts at the 144-apartment Milton tower in January, citing skyrocketing construction costs, severe material shortages, limited contractor availability and “unreasonable pricing practices”.
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The tower was first marketed in 2024 with penthouses priced from $3.75m.
The developer told The Courier-Mail that the project faced “extraordinary conditions” that resulted in construction costs increasing “at unanticipated and unprecedented rates”.
The company said early works had commenced and construction would continue once financing conditions were met.
When the project was first marketed in 2024, two- and three-bedroom apartments ranged from $654,000 to $2.495 million, with penthouses priced from $3.75 million-plus.
Queensland’s Office of Fair Trading continues to advise buyers to seek specialist legal advice before entering off-the-plan contracts, and to carefully review clauses that allow projects to be terminated if conditions are not met.
The 21-storey Ruby Ruby tower was approved by Brisbane City Council in late 2023 and marketed as a resort-style luxury development about 2km from Brisbane’s CBD, featuring a rooftop infinity pool, wellness facilities, private dining and cinema spaces.
Kokoda Property Group was contacted with further questions about the project’s current status and buyer uptake.
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