07/02/2006 - 21:00

Seashells stage one sold out at Mandurah

07/02/2006 - 21:00

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Mandurah’s strong growth has continued with the completion of stage one of the $40 million Seashells Mandurah Resort and settlement pending on the first 79 apartments.

Seashells stage one sold out at Mandurah

Mandurah’s strong growth has continued with the completion of stage one of the $40 million Seashells Mandurah Resort and settlement pending on the first 79 apartments.

When complete, the 215-apartment development in Mandurah will comprise 70 per cent short-stay accommodation, 20 per cent residential and 5 per cent commercial.

And while it seems every available piece of real estate in Mandurah is being snapped up, rising construction costs are still creating a problem for developers.

Seashells Hospitality Group managing director Paul King told WA Business News that 10 purchasers of stage three in Seashells Mandurah Resort had been asked for a 10 percent increase in purchase price, due to rising construction costs.

“Ten purchasers were given the opportunity to re-sign, and eight did, and that stage is now sold out,” Mr King said.

He said the cost increase was around 10 per cent, which was commensurate with cost increases in the construction industry.

Mr King said he wasn’t concerned by potential conflicts arising over the mixed-use nature of the development.

“We are not looking for people who see this as a retirement home, we want people who are interested in enjoying life in a resort environment which is about fun, leisure and lifestyle,” he said,

“If things are properly structured and well designed, a lot of problems can be avoided.”

Seashells’ first tourism site purchase was in 1994 in Scarborough, and the group has since made acquisitions in Broome, Mandurah, and Yallingup.

All these sites operate under managed rights schemes, and the Yallingup property, Caves House, has recently undergone a $3 million refurbishment.

And although not as optimistic as some in the industry about the property market’s near-term future, Mr King said he believed tourism would remain very strong.

“Australia is only going to continue to grow in popularity – it is a fantastic place to visit and the future is excellent,” he said.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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