It is understood the builder had been under pressure with delays stemming from its unionised workforce, competition among builders and a sudden pull back in new apartment project plans in Brisbane.

According to leading property analysts Urbis, the number of new apartment developments approved in Brisbane dropped to a level unseen since the beginning of 2014.

"In the December 2016 quarter, only 1,496 apartments were approved – compare this to 5,521 apartments one year ago," Urbis said in its last snapshot of Brisbane.

The number of apartment projects that have either started or been mooted for development has collapsed due to tighter financing from banks, stricter rules on both foreign and domestic investors, and rising construction and labour costs. Some developers have welcomed the changes saying it removes the new entrants, which may have added to oversupply problems.

One of the recent apartment projects in Brisbane completed by builder CMF. supplied

According to the ABS new unit approvals in Queensland fell 29 per cent in the month of March and builders are now finding it difficult to fill their order books, forcing them to either cut staff and costs or wind up work teams.

One competing builder, who declined to be named, said: "Of course its harder to fill our work books. It's much more competitive."

Urban Homes director Jon Rivera, who has outsourced the building of his homes to remove risk from the business, said he has seen the pressures facing builders.


"It's one job away from disaster for many builders," Mr Rivera said.

"We are seeing the risk and low margin they work off create less cash flow and with that they are forced to go into administration."

"The overheads versus the margin they are getting just means that if they make one mistake it could be their last."

Changing fundamentals in the Brisbane market have also seen the city's inner-ring vacancy rate rise to a new high of 4.4 per cent, following a year in which the city saw a record number of new apartments settled.

Growth in vacancy in the March quarter, from 3.6 per cent in the three months to December, reflected supply outstripping demand according to Real Estate Institute of Queensland chief executive Antonia Mercorella.

Until a creditors report is produced by the administrators of CMF Projects it is difficult to quantity the amount, if any, of money owed by CMF Projects to contractors or what developments it currently has under construction. It's bankers are also not known at this stage.

The builder's residential book shows it has completed well know medium rise apartment projects including the Mowbray Apartments, ARIA Group's AUSTIN Apartments, Kyabra Street Newstead, Artisan South Brisbane and Vine South Brisbane.