A retired couple from Brisbane face the devastating loss of their dream home after a property developer invoked a little-known contractual clause to cancel their sale just days before Christmas.
The Dream That Turned Sour
Retirees Danny and Pascale Sinclair paid a $257,000 deposit on a three-bedroom apartment in the Ruby Ruby development in Milton, inner-city Brisbane. They had purchased the off-the-plan property for $2.6 million in 2024, following the sale of their business, and had spent 16 months anticipating their new home.
Their plans were shattered on December 23, when an email from the Kokoda Property Group informed them their contract was being terminated. The developer cited a 'sunrise clause'—a contract provision often tied to construction start dates—which allowed them to end the agreement due to escalated costs and builder delays.
A Hefty New Price Tag
Kokoda Property Group stated that following reviews, construction costs had risen significantly above original expectations. The company has since terminated all existing contracts for the 178 luxury apartments and reoffered them at new prices.
The Sinclairs were given the option to repurchase their apartment for $3.815 million, presented as an eight per cent discount on a new asking price of $4.14 million. This represents a staggering 47 per cent increase on their original agreed price of $2.6 million. Mr Sinclair expressed his shock and anger, noting that other apartments in the same building had seen increases of only around 20 per cent.
"It was absolutely devastating because we were chasing this dream for the past 16 months," Mr Sinclair told the Daily Mail. "I didn't know about it (the sunrise clause)... I was quite angry that my original conveyancing lawyers didn't point it out to me."
Developer's Justification and Tight Deadline
In a statement, a Kokoda Property Group spokesperson blamed "extraordinary conditions" in the construction industry, including severe material shortages, labour constraints, and builder insolvencies. They stated that securing a funding package for the Ruby Ruby project was only possible after revising apartment prices upwards.
The couple claim they received reassuring updates throughout 2024 from sales staff and Kokoda founder Mark Stevens, never suspecting the contracts could be cancelled. "At no stage did they ever make us believe, or think, that contracts would be cancelled and changed," Mr Sinclair said.
Facing a tight deadline, the Sinclairs have until January 16 to decide whether to repurchase at the new price or accept a refund of their deposit plus interest. Mr Sinclair criticised the timing over the Christmas period, calling it disruptive and pressuring.
The couple are now weighing their options, having seen their dream of a luxury Brisbane apartment slip away due to a contractual clause they never fully understood.
