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Crisis Looms for Gold Coast Investors; What's a Unit worth on demolition day?
Topic Started: 26 Aug 2015, 01:31 PM (3,685 Views)
The Whole Truth
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Time up for Gold Coast high rise as concrete cancer warnings loom

Date June 16, 2015

Dozens of 40-year-old Gold Coast high rise apartment towers built in the 1970s face million-dollar concrete cancer repair jobs similar to the $215 million in repairs needed by Brisbane's City Hall.

In 2013 the 20-storey Iluka Surfers Paradise high-rise – built in 1972 - was demolished after concrete cancer destroyed the hotel's structural integrity. Concrete cancer – also known as concrete spalling – begins when steel reinforcement within a concrete slab begins rusting.

The problem is being seriously examined by Queensland's strata title authorities including Strata Community Australia.In January 2015 – and after the demolition of the Iluka resort - Strata Title Queensland president Simon Barnard suspected the problem was widespread. "I would expect that dozens if not more strata titled properties in Queensland have the beginnings of concrete cancer and are going undetected," he said.

Griffith University Head of Architecture Professor Gordon Holden warned other high rise projects had similar problems. Professor Holden said high-rise towers built in the 1970's had an average lifespan of around 40 years. "That means it's timely to look at the overall condition of older strata title buildings and to specifically look for signs of concrete cancer," Mr Barnard said.

Steve Kidson is the body corporate chairman of Focus Apartments at Surfer's Paradise, one of the dozens of Gold Coast high-rise towers now facing urgent concrete cancer repairs. Concrete cancer repair costs to Focus Apartments have ballooned from $1.5 million to $2.7 million according to a report from Gold Coast engineering firm Kavanaugh Consulting Engineers and confirmed by Mr Kidson." The amount of damaged concrete was always in the building," Mr Kidson said. "It had not been fully identified because concrete spalling is internal damage not always visible on the exterior of the building," he said. "Its full extent is never discovered until repairs and excavation of damaged areas commence."

http://www.brisbanetimes.com.au/queensland/time-up-for-gold-coast-high-rise-as-concrete-cancer-warnings-loom-20150615-ghop5g.html
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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Will
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Yes, it will be interesting to see how the apartments on the esplanade fare. And how all those car bodies used for clean fill will hold up.
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Bardon
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The Whole Truth
26 Aug 2015, 01:31 PM
Concrete cancer – also known as concrete spalling – begins when
the initial construction of the reinforced structural concrete structure is carried out incorrectly due to poor workmanship standards. Typically this includes insufficient cover on the reinforcement bars, insufficient fixing of reinforcing bars resulting in them moving during concrete placement, insufficient vibration of plastic concrete which results in porous cavities forming, inadequate concrete placement techniques which result in segregation and porous sections forming, concrete that has commenced initial set being placed, excessive time elapsing between concrete placement of different mobile agitator loads resulting in cold joints forming that are susceptible to moisture ingress, mortar leakage through form-work voids and incorrect concrete mix selection.

Reinforced concrete is a highly durable product and a 100 year design life in coastal areas is readily achievable, concrete will only spall due to poor placement techniques or the section in question was under designed which is unlikely if it was designed to Australian Standards.

Edited by Bardon, 26 Aug 2015, 04:14 PM.
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Bardon
26 Aug 2015, 04:07 PM
the initial construction of the reinforced structural concrete structure is carried out incorrectly due to poor workmanship standards. Typically this includes insufficient cover on the reinforcement bars, insufficient fixing of reinforcing bars resulting in them moving during concrete placement, insufficient vibration of plastic concrete which results in porous cavities forming, inadequate concrete placement techniques which result in segregation and porous sections forming, concrete that has commenced initial set being placed, excessive time elapsing between concrete placement of different mobile agitator loads resulting in cold joints forming that are susceptible to moisture ingress, mortar leakage through form-work voids and incorrect concrete mix selection.

Reinforced concrete is a highly durable product and a 100 year design life in coastal areas is readily achievable, concrete will only spall due to poor placement techniques or the section in question was under designed which is unlikely if it was designed to Australian Standards.
Can the builder be sued for this poor wormanship? I would imagine it to be too late for Gold Coast property investors, especially if the dwellign has been resold numerous times.

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Rastus2
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Will
26 Aug 2015, 03:50 PM
Yes, it will be interesting to see how the apartments on the esplanade fare. And how all those car bodies used for clean fill will hold up.
I've read this story, while not all concrete towers built in that period are affected, it is a widespread problem.

Lots of rapid, poor quality construction including, but not limited to residential, commercial and Government buildings.
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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peter fraser
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The Whole Truth
26 Aug 2015, 01:31 PM
Time up for Gold Coast high rise as concrete cancer warnings loom

Date June 16, 2015

Dozens of 40-year-old Gold Coast high rise apartment towers built in the 1970s face million-dollar concrete cancer repair jobs similar to the $215 million in repairs needed by Brisbane's City Hall.

In 2013 the 20-storey Iluka Surfers Paradise high-rise – built in 1972 - was demolished after concrete cancer destroyed the hotel's structural integrity. Concrete cancer – also known as concrete spalling – begins when steel reinforcement within a concrete slab begins rusting.
Yep there is some concrete cancer on the Gold Coast, but there is everywhere.

Buyers need to keep their eyes open and do their research.
Any expressed market opinion is my own and is not to be taken as financial advice
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Bardon
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26 Aug 2015, 05:09 PM
Can the builder be sued for this poor wormanship? I would imagine it to be too late for Gold Coast property investors, especially if the dwellign has been resold numerous times.

In reality the original developer/builder is responsible for the faulty construction and the first buyer would have a defect liability period when they purchased. After that its yours.

Concrete placement is a special process in construction quality lingo, a construction activity that cannot be readily and economically verified once complete. The most effective way to verify the quality of structural concrete construction is to inspect it "in process" ie inspect the reinforcing bar placement and fixing and form work adequacy pre-concrete placement. Then inspect the actual pouring of the concrete checking the delivered mix grade, placement methods, temperature and timing since water was added.

The term concrete cancer originated in the UK for concrete works placed in the fifties and the sixties although most concrete associations don't accept that term as it really means poor construction quality. Construction standards have lifted massively since then but unless you check it when it is being placed you dont really know what you have got until it starts spalling many, many years later.

I was recently involved with some very durable concrete mixes on the Victorian Desalination Project, these were huge structures built to retain salt water and waste brine which is highly corrosive. We had good specifications and 100 year design life and they were built well.

Like I said structural concrete is a very durable product when it is built properly.
Edited by Bardon, 26 Aug 2015, 10:09 PM.
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Terry
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These properties could be sold to the Chinese. Caveat Emptor. The media is being self righteous and not playing the game.
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The Whole Truth
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peter fraser
26 Aug 2015, 08:04 PM
Yep there is some concrete cancer on the Gold Coast, but there is everywhere.

Buyers need to keep their eyes open and do their research.
Agree totally. All across Australia the problem would exist, worst near the coast of course. It's a ticking timebomb.

Buyers should just steer well clear of any old units, the valuations are be completely unrealistic given the remaining lifespan. Just like the valuations of old timber houses compared to old brick homes. In the years ahead land valuations won't be a big factor in purchasing a home but having a quality built one will. I feel particularly sorry for all the people who have been sucked into buying the modern particle board and fibro homes. They might look ok now, but like a cheap modern car they will be piles of junk in 30 years.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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Loki
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Bardon
26 Aug 2015, 10:04 PM
I was recently involved with some very durable concrete mixes on the Victorian Desalination Project, these were huge structures built to retain salt water and waste brine which is highly corrosive. We had good specifications and 100 year design life and they were built well.
Aggregate or rebar?


“Talk sense to a fool and he calls you foolish.” - Euripides
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