A $3.4b collapse exposes the mess of our housing industry
The collapse of Bathla is a disaster for the national housing supply and affordability project: its now-stalled pipeline of 14,000 apartments represents about 18.5 per cent of new housing stock to be built in NSW this year.
A $3.4 billion collapse of the Bathla Group developer has exposed the shortcomings in Australia's housing industry. The NSW Building Commission conducted over 40 inspections of Bathla's sites due to quality concerns, yet the developer's affordable housing pipeline represents nearly 18.5% of new housing stock for the year. Bathla was one of Australia's largest providers of affordable housing, and the collapse threatens the national housing supply and affordability project.
The 2000+ page National Construction Code (NCC) failed to prevent the quality issues at Bathla, with the system of private inspections and approvals allowing developers to select lenient certifiers. Bathla's collapse can be attributed to various factors, including federal budget changes, the introduction of mandatory Decennial (10-year) Liability Insurance, and the inability to secure expensive insurance or a 2% bond.
The lenders to Bathla were private credit firms, which led to the company's voluntary administration. The lack of a national approach to construction regulation and policing has resulted in a complex and messy regulatory landscape across states.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
