Developer Sunkin Property Group has broken ground on its Highett Common masterplan project in Melbourne’s south-eastern suburbs.
The developer appointed SK Construction to deliver the $600-million precinct and also announced a partnership deal with the builder.
Under the terms of the exclusive agreement, SK Construction will now deliver not just Highett Common but all the other projects in Sunkin Property Group’s pipeline.
“The exclusive partnership with SK Construction allows Sunkin to have complete oversight over the delivery status and budget of each stage within Highett Common,” Sunkin property general manager Lloyd Collins said.
“This agreement allows us to better control the construction process and therefore provide additional delivery assurance to our customers.
“Across the industry, we’ve witnessed a 30 per cent increase in construction companies going insolvent over the past 12 months and it was critical for us to protect the project and our purchasers from any similar risks.
“It’s not about margin or additional profit, in fact in light of the construction pricing challenges, this allows us to run construction at a lower margin, which ultimately builds value for the end occupants.”
Work has begun on the first stage of the Highett Common project with an estimated cost of $70 million and 167 apartments scheduled for completion by late 2025.
There will be several stages of construction across the 9.3ha site with more than 1000 new apartments and townhouses delivered by 2029.
Sunkin has built more than $10 million of early infrastructure works at the project including roads, kerbs, water infrastructure and early works for basement levels.
Highett Common has net-zero targets with solar panels and access to green electricity and thermal insulation.
There is also a 3ha conservation area set aside as part of the project that will be managed in partnership with the Bayside City Council.
The developer has achieved more than $90 million in sales.
