An artist rendering released in 2024 of the view from one of the proposed apartments at Kokoda Property’s ‘Ruby Ruby’ development in Milton. Photo provided.
Skyrocketing construction costs have been blamed for the termination of contracts for the 144-apartment tower, with prices revised upwards of $1m per unit – amid a warning this is not alone.
Kokoda Property Group has confirmed it has exercised its contractual rights to terminate existing sales at its Ruby Ruby development in Milton after a review with its expert team concluded that costs had risen unexpectedly.
MORE: Brisbane houses jump $135,900 a year
A key element can add thousands to your home
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
Luxury developer Kokoda Property gives a preview of what Ruby Ruby will look like. Image: Provided
Ruby Ruby is a stone’s throw from Suncorp Stadium in Milton. Photo provided.
“After extensive review with our appraiser, architect and financiers, it has become clear that additional funding must be secured to develop Ruby Ruby to make it feasible and meet construction financing conditions,” the company said in a statement to the Courier-Mail.
“As a result, Kokoda Property Group has exercised its contractual rights to terminate the contracts. Buyers have been given the opportunity to secure their accommodation at the revised rates.”
The developer warned that he is not alone in this position, and many projects should re-evaluate their location.
“Legal and industry advisers have confirmed that these pressures are not isolated to Ruby Ruby, with many developers choosing not to proceed with projects due to rising costs and an inability to access working capital.”
MORE: At home at the heart of Lachie Neale’s drama
Posh basement melts thanks to lonely Aussie pensioner’s dog plea
Kokoda said that “extraordinary circumstances” made the project to be reviewed. Photo provided.
There are two, three and penthouse options in the project. Photo provided.
The statement said that “since the launch of Ruby Ruby, the industry has faced extraordinary circumstances including severe shortages of essential construction materials, limited availability of contractors, labor issues, unreasonable pricing practices, and financial failures of various builders and subcontractors.”
“These problems have led to the construction costs increasing at unexpected and unprecedented rates, to the point where the project cannot meet its financial needs from the proceeds of the sale of contracts.”
The decision left buyers faced with the decision to walk away with their deposit back or try to secure their home again at higher revised prices, among them retirees Daniel and Pascale Sinclair, who paid a $257,000 deposit on a three-bedroom apartment valued at $2.6 million after selling their business last year.
The couple told 9News that their contract was terminated a few days before Christmas under a “sunrise clause”, which allows developers to cancel contracts if construction does not begin within a specified period.
The Sinclairs were then offered the option to repurchase their home at a revised asking price of just over $3.8 million – nearly $1.2 million more than originally agreed upon.
“We bought it for $2.6 million, they’re going to put it back on the market for $4.14 million and they’re going to give us an 8 percent discount on that,” Mr Sinclair said.
MORE: Inside luxury beach villas worth $616 million
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 768 1024"%3E%3C/svg%3E)
Artist’s impression of the multi-residential project, Ruby Ruby, in the heart of Milton, Brisbane. Image: Provided
On Wednesday, the developer said “The Kokoda Property Group remains fully committed to delivering Ruby Ruby to the high design and quality standards that the Group is known for”.
“The first works have begun, and construction will continue once the financial conditions are met.”
The Queensland Office of Fair Trading continues to advise buyers to seek specialist legal advice before entering into off-plan contracts, and to carefully review clauses that allow projects to be terminated if conditions are not met.
The 21-storey Ruby Tower was approved by the council in late 2023 and is being marketed as a luxury resort-style development about 2km from Brisbane’s CBD in 2024 with prices ranging from $654,000 to $2.495 million for two and three-bedroom houses, and penthouses costing $5 million-plus. Expectations at the time were for the project to begin construction in early 2024 and be completed by late 2025 – and the tower will have an infinity pool on the roof, health facilities, private restaurants and cinemas.
MORE LOCAL NEWS
