Sydney developer’s $3.3bn collapse sparks ‘contagion’ fears across housing sector
The collapse of Sydney developer Bathla Group, with $3.3 billion in debts, has raised concerns about a contagion effect across the Australian housing sector. The NSW government is facing pressure to intervene to protect home buyers and ensure the completion of stalled projects.
Why it matters
The failure of a major developer threatens to exacerbate housing supply shortages and financial instability within the construction industry.
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Share A A A The NSW government is facing urgent calls to intervene and ensure the completion of unbuilt homes following the collapse of a major Sydney developer, amid growing concerns of a “contagion” effect across the state’s housing sector.
Bathla Group entered voluntary administration last Monday, owing debts of more than $3.3 billion . The company’s collapse plunged hundreds of home buyers into limbo over dozens of residential developments, mostly in Sydney’s fast-growing outer suburbs and in the Illawarra region.
A Bathla construction site at Box Hill in Sydney’s outer north-west. Janie Barrett Lawyers for administrators Teneo told a Supreme Court hearing on Thursday that Bathla was juggling about 220 projects when they were called in, and roughly 45 of those were still under construction.
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