Developer falls
After a series of scrutinising news articles in recent weeks, New South Wales development group Bathla has gone into administration with over $3 billion in debts, a significant portion of which was owed to private credit funds.
The development group was founded in 1997.
It remains to be seen if the Bathla Group collapse spills over into materially greater problems for the private credit sector.
Sales and confidence have dropped severely for most housing market developers after the Federal Budget, and this has come on the back 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 some 22,000 apartments in the group's development pipeline, and 3,500 houses.
Reportedly 15,000 of the homes are in the under construction phase.
Shane Oliver of AMP showed in the below graphic just how far behind the state's housing supply target New South Wales already is:
The Guardian reported that 1,522 construction firms collapsed in New South Wales over the course of the past financial year.
On these numbers it looks as though New South Wales will move into the next cycle with the most acute shortage of housing.
The development group's collapse was covered in more detail
here and
here (no paywall).
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