Mount Maunganui apartment development Blake Lofts has fallen through, leaving buyers awaiting the return of their deposits.

The proposed three-storey development on the corner of Maunganui Road and Hinau Street was originally advertised as 22 apartments selling for under $300,000 each.

A technical drawing of Blake Lofts, which was aimed at first home buyers before the project fell through. Photo: File.

A customer who signed up in August, who wishes to remain anonymous, told SunLive she paid a $5000 deposit for one of the properties, and that the development had sold-out.

She also revealed people were lined up behind her on a waiting list in case she changed her mind.

She's now going back into a market that has moved a conservative $20k since she signed up, putting even the less attractive houses in ‘the ghetto' above $400k and out of her reach.

The Blake Lofts website, which previously advertised how the project was aimed at first home buyers, has been taken down after SunLive contacted the development's real estate agent, Genevieve Cameron.

She declined to comment on the instruction of her manager Neville Ruske, saying any comments would be up to the developer.

'All I can tell you is the land in under contract to another party,” says Neville.

The Blake Lofts developer was Celt Saxon Corp Ltd, under the guidance of directors Graeme Hamilton and Graeme Milward, who today confirmed the development will not go ahead.

'We were in negotiation with another party to take over the development,” explains Graeme Milward.

'I found out last Tuesday that they had pulled the rug from under us, and had gone to the landowner directly and put an offer to them.

”This left us with no option but to notify the potential purchasers that the development would not proceed and we did this through the traditional channel, notifying them via their lawyers.

'We are gutted to say the least, as we spent extensive time and money putting the proposed development together and we felt this was to meet the market need, suiting the younger first home buyer.

'It is disappointing that this loft design will never come to fruition, as we believe it was very much needed in the Mount marketplace.”

According to Tauranga City Council, the land is owned by Adrian and Gillian Payne, however SunLive have not been able to make contact with them at the time of going to press.