The apartment advocacy group says at least 15 buyers are looking to exit their contracts to buy into the development.
Australian Apartment Advocacy is considering a class action against Iris PW on behalf of buyers of the developer's $140 million Shenton Quarter project.
The move comes after BGC Australia stopped work on the Shenton Park project late last month amid a commercial dispute with Iris PW.
The nine-storey, 157-dwelling development has been beset by delays, with its initial completion date flagged for mid-2022.
Allegations of build defects have emerged about the project in recent months, with the Construction, Forestry, Maritime, Mining and Energy Union expressing concerns about the structural integrity of the building earlier this year.
AAA director Samantha Reece today said she was getting advice about the potential for a class action on behalf of buyers of Shenton Quarter.
She said at least 15 buyers were looking to exit their contracts to purchase apartments off the plan in the development.
“We understand the distress and frustration experienced by buyers as a result of delays to the project, and respect their right to seek advice on their personal situations,” he said.
“As the developer of Shenton Quarter, we continue to keep in close contact with buyers to address their questions and share all the information we have available, and we remain focused on getting work restarted on the site and completing the project as soon as possible.”
Ms Reece reiterated her call for mandatory audits on apartment projects, which the state government says it is considering.
“The state government has supported developers by offering buyer stamp duty concessions and assistance with the costs of water, energy and sewerage supply, but where is the protection for consumers,” she said.
Commerce Minister Sue Ellery has stated that the government was considering mandatory inspections for apartment builds.
Mr Trevisan said all class two to nine buildings, which Shenton Quarter fell within, in Perth must be certified as complying with all building standards on completion.
“This requires full assessment and sign off by an independent building surveyor to achieve a certificate of occupancy before buyers move in," he said.
"Shenton Quarter is no exception.
“The project is ninety-five per cent complete, has been comprehensively monitored and all aspects – including design, engineering and core structural integrity – assessed throughout the build process, and is on track for certification on completion.”