I agree with @flashynomad I don't believe that there's been any funny business with planning here. What was odd to me during the construction of this project was that the government permitted the developer to essentially shut down / significantly impede the flow of traffic on West Bay road. Funny thing is that if it were Dart developing this they would have made him build an alternate road around.
The developer of Watermark from my understanding is trying to start a new development. This next one will be where Island Club is located on Seven Mile Beach. It's my understanding that the partner of the developer has already purchased the Grand Pavilion Commercial Center with the idea of doing the same thing as they've done with Watermark. This is why you're no longer seeing any units on the market and for sale at Island Club (granted any coming on the market was rare). They've been snatching these up whenever they can driving the price for these old units up to I've heard well over USD$5,000,0000.