Volatility in development sector leads to cancellation of $140M tower project

Volatility in the embattled construction sector has forced a Brisbane-based developer to mothball a $140-million apartment tower project touted to “lead the renaissance” of a city fringe suburb.

It is understood sales contracts had been signed for more than 80 per cent of the 121 apartments in Keylin’s Oria development.

GALLERY  

Construction was due to begin this year on the Art Deco-inspired tower at Spring Hill on the Brisbane CBD’s northern doorstep.

But in the face of soaring construction costs and crippling labour shortages increasingly putting the feasible delivery of projects at risk, the developer has opted not to progress with the project until conditions improve.

“Australia’s construction sector remains unstable and, despite our best efforts and rigorous tender processes, we have been unable to secure a contractor to deliver Oria,” Keylin managing director Louis Cheung said in a statement.

“As a result, we have made the incredibly difficult decision to not proceed with Oria Spring Hill. It goes without saying that we are deeply saddened.

“Our project team has worked tirelessly to mitigate risks wherever possible, however Australia’s construction sector is too volatile in the current market.”

Cheung said all purchasers had been personally informed this week and full deposits would be returned.

“Keylin will revisit the site in the future when market conditions support the feasible delivery of premium projects,” he said.

The latest move follows Keylin’s decision last year to scrap the other half of what was to be a twin-tower development on the 3700sq m site fronting Brisbane’s Victoria Park redevelopment. It was earmarked to house the city’s first Movenpick Hotel with a total of 96 suites and a daily “chocolate hour”.

At the time, Cheung said rising supply costs and labour shortages were impacting every facet of development nation-wide.

“We have decided to proceed with a competitive construction tender for Oria to provide the best opportunity to secure an acceptable construction outcome,” he said. “Secondly, we have made the decision not to proceed with the hotel on the site.”

Via The Urban Developer






Get our enews

Design and development news that comes to you

Subscribe
                 


Valiant Revolutionises Event Industry with Australia’s First Carbon Calculator

Sydney, Australia, 10 June 2025 – Leading furniture hire company Valiant has launched Australia’s first Carbon Calculator for event, residential and ...

Bershka’s Ibiza Flagship Blends Retail with Sensorial Storytelling

Bershka has unveiled its new flagship store in the heart of Ibiza, signalling a bold departure from traditional ...

City of Sydney Unveils $2.7B Budget for Urban Renewal

The City of Sydney Council has unveiled its draft 2025–2026 Budget and long-term financial plan, setting aside almost ...

The Love Shack: Prototype for a Circular Design Future

Tucked into a triangular backyard corner in Sydney, The Love Shack is more than just a multi-functional studio ...

  MORE  

Stay connected to the SPEC

Join our reader network by signing up to our weekly newsletter and receive design and development news straight to your inbox





Specifier Source is brought to you by the same company that publishes Home Design, Grand Designs Australia Magazine, Kitchens & Bathrooms Quarterly Magazine, Outdoor Design Source, Build Home, CompleteHome and many more.

© 2022 Universal Media Co. All Rights Reserved. Privacy Policy. Terms of Service. The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Universal Media Co.