Richard Cheong lives next door to what is effectively a $21 million hole in the ground.His back gate used to open onto manicured fairways where he played golf four times a week.Then the course was scraped bare last year to build a water park and resort within a major real estate development on the northern beaches of Cairns.But the proponents axed the water park and resort proposal this month, blaming cost blowouts and the Iran war.For Mr Cheong, and those who have bought into the project, the development now looks different from what was originally planned."Now it's all up in the air; nobody knows what is going to happen," Mr Cheong said. Civil earthworks, including for a 2,500-square-metre wave pool, started last year on a water park and resort in Cairns. (Supplied: PPNQ Developments)Water park part of wider real estate developmentCalled The Palms, the project was slated to be one of Far North Queensland's biggest tourism and real estate developments in recent years.Buyers were sought for new housing lots, promising an unparalleled lifestyle in the region's "most liveable community".In 2015, the developer behind the project, PPNQ Developments, bought the 113-hectare parcel of land, which was home to a championship golf course called Paradise Palms.The course helped make Cairns a golfing destination in the 1990s, but PPNQ closed it in 2019, citing low patronage.The company unveiled plans to build a $300 million master-planned community in its place, complete with housing, a primary school, restaurant, bar and shops, walking tracks, water park, and more than 360 tourist villas.The water park and resort at The Palms was to have more than 20 slides and 360 tourist villas. (Supplied: PPNQ Developments)But PPNQ managing director Darren Halpin announced this month that the company was abandoning the water park and resort component despite having spent $21 million on the project."It's heartbreaking for all of us," Mr Halpin said."But at some point, you've just got to say enough is enough."Civil earthworks started last year, which included carving a 2,500-square-metre wave pool into the ground.But work has now halted, leaving a 20-hectare clearing and two shipping containers full of water slide parts.Some residents launched legal action against the redevelopment of Paradise Palms but they dropped the court case in 2021. (ABC News: Curtis Rodda)Mr Halpin said since war broke out in the Middle East in February, the prices of steel, bitumen and cement had ballooned, increasing the project's costs by $30 million.He said he tried "every possible way" to salvage the project, including downsizing, restaging and bringing in financial partners, but it was no longer viable."[When] you borrow money off the bank, interest keeps on burning whether you're operating or not," Mr Halpin said."That's why they say in development, time kills all deals."It is the latest development in Queensland to stall this year amid financial difficulties, including a proposed $2.6 billion theme park north of Brisbane and a $65 million luxury apartment tower project in Townsville.'Not what we expected' says residentWith the water park and resort now axed, plans for a commercial hub in the adjoining clubhouse are also on hold while PPNQ decides the fate of the 20-hectare site.In 2024, the company also sold off a 24-hectare parcel earmarked for housing and green space to land lease operator Serenitas for a new retirement village, resulting in a 30 per cent reduction in promised walking trails.The Palms master plan in 2020 included new housing subdivisions surrounded by green space near a new school, commercial hub, water park and resort. (Supplied: PPNQ Developments)A new primary school is still on the cards, although it is not clear when it will be up and running.The Catholic Diocese of Cairns said it still hoped to build a school on a 3.8-hectare parcel it bought from PPNQ in 2020, but a timeframe for construction and opening would depend on population growth.What has been delivered so far is more than 130 new residential lots, most of them now with homes built, and a new playground and amphitheatre.One property owner, who wished to remain anonymous, said she was disappointed at how much the plan had changed in the few years since she had bought a block in The Palms."It now feels like the original vision we bought into is no longer being delivered at all," she said.A commercial hub planned for the old Paradise Palms golf course clubhouse is also up in the air. (ABC News: Sharnie Kim)"The removal of the water park and resort is especially disappointing because it was promoted as a major tourist attraction that would also bring jobs and growth to the local community."Without it, the suburb is not what we expected when we chose to buy there."Developer considering all optionsMr Halpin said those who had bought in The Palms still had homes in a "great location" and they would have already made substantial capital gains, with block prices doubling in the past four years.He was now considering "all options" to deliver what he could of his vision for The Palms, including finding potential buyers to take over the resort portion of the project.But he said it was hard to attract investment to a regional area in the current economic climate.Neighbouring residents have mixed views about the prospect of more housing in The Palms development. (ABC News: Sharnie Kim)Mr Halpin said more housing on the site was also being considered, which concerned those like Mr Cheong who were worried about potential traffic impacts."If it's going to be more housing blocks, right now with the congestion, it's going to be really terrible," Mr Cheong said.Meanwhile, Cecellia Lenoy-Dong, another neighbouring resident, believed more housing could help the Cairns region."I think it'll be a good thing the way that Cairns is going now and there's demand for more housing," she said.