Shaky foundations: Bathla’s downfall is one of many warning signs for Australia’s construction industry
Thousands of buyers are in limbo as developer goes into administration, in crisis that casts more doubt on housing targets Get our breaking news email , free app or daily news podcast Donna Jones’s new “lovely little one-bedroom unit” was supposed to be part of her retirement plan. The 63-year-old disability support worker’s new apartment, which she bought off-the-plan from the Bathla Group,…
A major Australian developer has gone into administration, leaving thousands of homebuyers in a state of uncertainty as they face potential losses on their off-the-plan purchases. The Bathla Group, one of New South Wales's largest property developers, has been burdened by over $3.6 billion in debt, casting a shadow over the nation's ambitious housing targets.
Donna Jones, a 63-year-old disability support worker, was among those left devastated by the news, as her retirement plan now hangs in the balance. While Bathla's collapse is drawing widespread attention, it is merely a symptom of a larger issue plaguing the construction sector. In the past year alone, more than 7,000 construction companies have declared bankruptcy, with the national housing accord – which aims to build 1.2 million homes by the end of 2029 – now facing a looming deadline.
Bathla's administrator, Teneo, has warned that it may need to liquidate the company if it cannot secure additional funding to keep its ongoing projects afloat. The crisis has sparked a broader debate about the sustainability of the industry, with experts highlighting the impact of rising costs and tightening lending conditions on its ability to deliver affordable housing.
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