The pandemic has choked global and local supply chains, creating pressures that have contributed to the collapse of a string of commercial and residential builders.
The soaring costs have prompted many developers to delay the commencement of new projects, and the start of the precinct set around a restored maritime goods shed could be a sign that confidence over costs is returning.
Mr Lee said the Fender Katsalidis-designed project allowed for a “pretty standard” 5 per cent contingency margin on costs, but the main cost had come in terms of the extra time taken to appoint the builder and start the project.
Apartments facing north, towards Docklands Park and the central business district, had been selling for between $13,000 and $14,000 a square metre, while apartments overlooking the river, which were generally larger, were going for between $15,000 and $16,000 a square metre, Mr Lee said.
The priciest apartments were those on the building’s corners as they had multiple views and were selling for more than $18,000 a square metre, he said.
The project will create a 3500sq m Seafarers Rest public park that will be part of a planned series of parks connecting the Northbank precinct to central Melbourne.
“We welcome this significant development in our city,” Melbourne lord mayor Sally Capp said.
“The Seafarers project complements City of Melbourne’s game-changing transformation project Greenline, which will revitalise and renew Northbank.
“Investments of this magnitude show the confidence and strength of Melbourne’s future as we bounce back from a tough two years.”
