Changing market conditions has prompted a Gold Coast developer to slash 46 apartments from its permit-approved Main Beach skyscraper.
Builder-cum-developer Heron Building Group has resubmitted an application to Gold Coast council to drastically amend the proposal, reducing the building size from 55-storeys to 38 and cutting the amount of apartments on offer.
Heron won approval for the original 55-storey design in 2016.
In its application, Heron said that development had been amended “due to construction costs and to reflect current market demand”.
Construction costs in south east Queensland are expected to rise by 2.5 per cent in 2019, consultancy Turner & Townsend reported in its latest construction market survey.
Heron has tapped architecture firm Cottee Parker to design the new scheme, which reduces the front setback by 3 metres but increases the building length by 5 metres.
The developer proposes to retain the car lift system and increase the amount of car parking spaces from 223 to 241. The new scheme has removed the 160 bike spaces set aside in the approved proposal.
New forecasts predict a peak-to-trough decline of 30 per cent in residential construction across the country, with residential commencements expected to bottom out at 161,000 dwellings in 2019-20.
The downturn has prompted developers across the nation to opt out of residential schemes.
Winten Property Group more than halved its Main Beach project, replacing a 250-apartment, 47-storey scheme with a 21-storey proposal.
While Gold Coast developer Sunland cut 19-storeys from its Labrador apartment project late last year.
Heron Building Group did not return calls for comment on Wednesday.