A shortage of construction contractors in Queensland with the capacity to take on large projects is forcing developers on the Gold Coast to focus on smaller projects.
A major Malaysian developer, MRCB international, told the AFR that it had limited the height of an apartment building for development approval, which also reduced the cost to $200 million.
The 20-storey tower, known as the Maris Project, will house 192 apartments on the former Sundale Motel site on Queen Street, Southport. MRCB chief executive Ravi Krishnan said the company did not want to exceed 20 levels.
“We wanted to be safe in the sense that we wanted to restrict our [end value] to about $200 million so there would be a wider pool for us to be able to look for builders,” he told the AFR.
“We knew that the size and scale of the Southport site would enable us to move forward quickly with that project in terms of securing a tier one builder.”
Four construction contractors are currently vying to build the Maris Project, the second project on the Gold Coast for the company. The other project is 26 Vista, a 51-storey 280-unit development in Surfers Paradise where MRCB experienced challenges finding a builder, influencing its decision to limit the Maris Project.
There are builders available to compete and build up to 20 or 24 levels, as opposed to a tier one builder for a building like 26 Vista, Mr Krishnan said, however his company is now in final negotiations with a contractor and construction is expected to start shortly.
Queensland’s Urban Development Institute confirmed this was not an isolated case and it is seeing developers “right-sizing” their projects.
Image: An artist’s render of the Maris Project in Southport.
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Desi Corbett
Desi is the Editor of Concrete in Australia, at the helm since December 2013, and our weekly news writer since 2016. Focused on concrete and construction for more than 11 years, her expertise in this field forms part of a journalism career spanning three decades. To get in touch please email desi@corbettcomms.com