Plans have been shelved for more than 100 new apartments in the Sunshine Coast, due to build prices shooting higher than a local developer had planned.
Henzell Property Group (HPG) announced they would be pausing early work on two new apartment buildings in their Pelican Waters district ‘The Cove’, which would have brought 124 house-sided units to the area.
The plans are expected to remain on hold for at least five years, while the developers pivot to more affordable work in the townhouse sector.
Plans have been paused on the next two buildings in Henzell Property Group’s Pelican Waters development ‘The Cove’ – which would have brought 124 apartments to the Sunshine Coast.
No homeowner deposits were left up in the air, as development was paused before any of the buildings were formally announced.
HPG director Mclean Henzell said build prices had “skyrocketed” since they signed the build contract for Comino, their latest apartment complex in The Cove, back in 2023.
“It’s become really difficult to get a builder for multi-residential projects with 50-plus units,” he said.
“That does not mean demand has softened. It means the kind of product buyers want is becoming harder to replace at the same scale and quality.”
HPG director Mclean Henzell said build prices for large apartment developments had “skyrocketed” past affordability since 2023.
The developers said they did not expect to revisit the plans for at least the next five years, pivoting their focus to building townhouses in the region.
The planned buildings would have made up stages 3 and 4 of The Cove. Stage 3 would have provided 52 apartments over a nine-storey complex, while stage 4 would have been 72 units over a six-floor building.
Only three penthouse-style apartments remain for purchase in Comino, with available unit prices beginning at $1.99m.
The six-storey building was designed to fit 40 large apartments, designed for owner-occupiers looking for move-in ready apartments without sacrificing space or location.
Only three penthouse-appointed units remain at Comino Residences, with prices beginning at $1.99m for the remaining homes.
“I’m thrilled with the finished project,” Mr Henzell said. “A lot of happy people are residing in the projects now. It’s just great to see it being really used well.
“These are not apartments that can simply be replaced next year. Once they are secured, this level of completed waterfront living within The Cove will be unavailable for the foreseeable future.”
Early planning is in place for HPG’s next project, a 25-townhouse development on Arthur St in Caloundra.
“We’re going to concentrate on townhouse projects in Caloundra,” Mr Henzell said. “It’s easier to get a builder to work on those projects.”
HPG’s next project is a 25-townhouse project at Arthur St, Caloundra, which is currently in the design stage of development.
Housing Industry Association senior economist Tom Devitt said prices for building homes had continued to rise since the Covid-19 pandemic, and showed no signs of slowing down yet.
“Material prices just soared,” he said. “They went up by about 40 per cent in a few years … but they [recently] stopped increasing at the rates we’d seen before.
“Labour costs continued to increase relatively strongly, and now that we’re seeing home building activity picking up again … we expect labour shortages to remain, and that will continue to put pressure on labour costs.”
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