Buyers still frustrated by a year of delays at boomer development
LOS ANGELES: Buyers are becoming increasingly frustrated with the delay in starting work on a boomers residential project.
Developer Paul Blackburne has assured buyers the West Village development in Karrinyup is proceeding, with construction due to start next month after a year of delays.
Buyers signed contracts to purchase the Karrinyup apartments off the plan up to three-and-a-half years ago, with many paying deposits worth tens of thousands of dollars.
But as buyers watched last week’s announcements about Blackburne’s luxury City Beach development, some questioned whether the Karrinyup tower would even proceed.
“It’s disheartening to see such exposure for other projects and no mention of the one I signed up for almost three-and-a-half years ago,” wrote one disgruntled buyer. “I too have my doubts that it will go ahead … In addition, we have paid more than $40,000 in stamp duty for what is essentially a carpark.”
Mr Blackburne said this week the Karrinyup project was due to begin construction next month.
“We completely understand how frustrating delays can be for buyers — they’re frustrating for us as well — and we genuinely empathise with people who are eager to move into their new homes,” he said.
“Over the past few years, the WA construction market has faced unprecedented challenges, including severe labour shortages and construction cost escalation, which has caused delays or cancellations across most major off-the-plan projects.
“When our original builder exited the WA market last year, we worked intensively to secure approvals for a replacement, rather than putting the project on hold or cancelling it.
“We’re pleased to confirm that a tier-one national builder is now being appointed, with construction commencing on site next month.”
Mr Blackburne confirmed off-the-plan buyers are not required to pay for their apartments until completion, with deposits held in trust. He said the financial risk of delays sits with the developer, not purchasers.
The land is owned UniSuper — which is managed by the GPT Group.
While refusing to reveal construction costs, Mr Blackburne said the project’s end value in 2023 was $350 million.
“In fact, many buyers have benefited from the additional time, with their homes increasing in value and, in many cases, their apartments now worth more than when they purchased,” he said.
“While some early buyers are understandably frustrated by the delay, the vast majority are supportive and understand the broader market conditions.
“In a period where many approved projects simply haven’t proceeded due to market conditions over the pasttwo years, we’re proud that West Village is moving forward and that we’re now in a position to commence construction.”
West Village will sit alongside the completed East Village — a $75 million project with 94 apartments.