The Gold Coast property market is facing another test as the Waverley Residences, an unfinished apartment block in Southport, goes on sale. The project, left incomplete after the collapse of builder Descon, is now seeking a new owner through a campaign managed by Ray White Special Projects, with expressions of interest closing on November 7.
The eight-level building was originally designed to house 60 units, offering a mix of one, two, and three-bedroom apartments. Designed by the renowned architecture firm Rothelowman, the building reflects contemporary urban living. Despite being 90% completed, the project currently lacks pre-sales and awaits a buyer to take it over, finish the construction, and bring it to market.
Descon’s collapse is the latest in a series of construction industry challenges. The builder’s fall has left the developer, Busikon, and its lender scrambling. As a result, receivers have been appointed to manage the property’s future, with hopes of attracting buyers who may see the unfinished block as a prime opportunity.
Ray White’s Mark Creevey, who is overseeing the sale, remains hopeful. The building’s scale and location in Southport make it attractive to investors, despite the current challenges in the sector. Some potential buyers may see an opportunity to stratify and sell the units individually, while others might view the block as a long-term rental asset, particularly given the Gold Coast’s continuing population growth.
The project’s unfinished state, however, serves as a reminder of the broader issues impacting Queensland’s construction sector. Rising material costs, labour shortages, and ongoing insolvencies have created a tough environment for builders and developers alike. For Descon, it was simply too much, leaving the Waverley Residences just shy of completion.
Descon’s collapse is not an isolated case. The Queensland apartment market has been dealing with a spate of builder insolvencies, a trend that has disrupted several projects across the state. The rising costs of building materials, combined with a critical shortage of subcontractors, have made it difficult for many developers to bring their projects to completion.
Meriton, one of the Gold Coast’s biggest developers, has managed to weather the storm more effectively. With its own construction division, the company has been able to keep projects moving forward, including the development of major towers like Iconica and Cypress Palms. But smaller developers, reliant on independent contractors, are facing much tougher conditions.
Some developers have even found themselves in the uncomfortable position of needing to renegotiate sales contracts, offering buyers the chance to continue with their purchase, but at a higher price, in order to cover escalating construction costs. For others, the financial burden has been too great, forcing them to cancel contracts altogether.
Subcontractors, meanwhile, are finding themselves in a strong position. A builder based north of the Gold Coast noted that the demand for tradespeople has pushed prices to new highs, as developers scramble to secure labour for their projects. With so many projects still in the pipeline and a critical shortage of subcontractors, some tradespeople have been able to set their own prices, further compounding the difficulties faced by builders.
Economist Nerida Conisbee from Ray White sees little relief for the construction sector in the short term. The combination of high demand for apartments and the strain on the construction industry means that the supply of new units is unlikely to meet demand anytime soon. While the Gold Coast market remains resilient, it’s clear that developers will continue to face challenges as they attempt to bring projects like the Waverley Residences to completion.
Southport itself remains a highly sought-after suburb, particularly for properties priced under $750,000. Over the past year, the suburb recorded 973 sales in this price bracket, making it one of the most active markets on the Gold Coast. Southport’s relative affordability, combined with its proximity to the beach and key amenities, has made it a favourite among both buyers and investors.
Rental demand in Southport is also strong, with a vacancy rate of just 1.1%. Only 289 properties are currently available for rent in the suburb, a figure that highlights the chronic undersupply of rental properties across the region. This lack of available housing has driven up prices, with unit prices in Southport increasing by 313% over the last two years.
Investors are now eyeing suburbs like Southport as prime locations for long-term growth. The combination of high demand, affordability, and limited supply makes the suburb attractive for those looking to capitalise on the region’s growth. However, the challenges facing the construction sector mean that projects like the Waverley Residences remain in a precarious position.
The Waverley Residences case highlights the fragility of the construction industry in south-east Queensland. As developers continue to face rising costs and labour shortages, more projects are likely to encounter delays or fall through altogether. For now, the Waverley Residences is up for sale, offering investors a chance to take on a partially completed project in a booming market.
The question remains: will a buyer step in to finish the Waverley Residences and bring these units to market? The answer could depend on whether the construction industry can overcome its current challenges and return to a more stable footing. Until then, Southport’s latest high-rise will remain unfinished, waiting for someone to turn it into a success story.
