BEULAH have put their STHBNK into voluntary administration due to the challenges of building apartments – cost increases, slow sales, finance costs.
(Edit: one of the developer entities has been put into VA, not the underlying landowner SPV. Still doesn't bode well when the project architects and engineers aren't being paid).
It follows on from the news about Bensons Property Group with their own challenges.
Via The Australian Financial Review and Michael Bleby:
"Developers on Tuesday were quick to warn that more failures were likely, criticising Victorian government charges on foreign and local buyers for raising the costs of projects and saying that efforts to support commercial property development, such as attempts to speed up planning processes and making stamp duty concessions were not enough.
“The Victorian development industry is facing the toughest conditions in decades, in no small part due to years of the government’s tin ear,” said developer Maxwell Shifman, the chief executive of Intrapac Property.
“The whole housing industry is impacted, but the apartment sector is particularly vulnerable.”
It's not a positive when some of the State's most prominent developers and projects are having trouble.
It does not bode well for new #housingsupply. Things will continue to get worse before they get better in current circumstances.