Brisbane unit tower scrapped
Development of one of Brisbane's biggest inner-city luxury apartment towers has been scrapped by developer David Devine. The $225 million ‘Georgian' tower would have had 433 residential apartments in 40 storeys, in addition to office and retail space.
Mr Devine said that sales had been going strongly four months ago until “all the experts in the world”, ranging from the Queensland Premier to the Reserve Bank governor, made statements about oversupply of inner-city units. He warned that two other inner-city developments – one in Melbourne's Docklands and one in Brisbane – were now under threat due to bad press and negative comments on the market by politicians and the media.
Analysts said that more developments may be shelved because of overbuilding and fading investor interest. Macquarie Bank's Rod Cornish said he wasn't surprised by the scrapping of the Georgian project. Interstate demand has been petering out, he said, with very large residential towers the most likely developments to get into trouble. The Georgian was heavily promoted in Sydney and Melbourne by radio personality John Laws.
Mr Devine said $42 million worth of space had been sold in the Georgian but he needed to have sold $120 million by March to go ahead. Everyone who lodged deposits will have them refunded.