Developer falls
After a series of news articles in recent weeks, New South Wales developer Bathla Group has gone into administration with over $3 billion in debts, much of which was owed to private credit funds.
It remains to be seen if this spills over into greater problems for the private credit sector.
Sales and confidence have dropped sharply for most developers after the Federal Budget, and this has come on top of interest rate increases and steepling construction costs since the COVID lockdowns and border closures.
According to the Bathla group's website (now down) there are 22,000 apartments in the group's development pipeline, and 3,500 houses.
Shane Oliver of AMP shows how far behind the housing supply target New South Wales already is:
The Guardian reported that over 1,5000 construction firms have collapsed in New South Wales over this financial year to date.
On these numbers it looks as though New South Wales will go into the next cycle with the biggest shortage of housing.
The group's collapse was covered in more detail
here and
here (no paywall).
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