The dire state of the New South Wales property sector has claimed three more building companies in the last few days, just a week after 20-year-old builder Wincrest collapsed with $12 million in debts.
The NSW Office of Fair Trading announced yesterday that Kingstone Homes, which operates on the central coast of NSW, has been placed in the hands of an external administrator, Worrells Solvency and Forensic Accountants. It is believed the company currently has 33 homes under construction.
A few days ago, Tsurami Pty Ltd, which traded as Iconique Designer Homes, was placed in liquidation, with James Shaw of Ferrier Hodgson appointed as the liquidator. The company, which operates mainly in the Hunter region of the state, currently has nine homes under construction.
The Minister for Fair Trading, Virginia Judge, has also been advised that Pacific Blue Homes, based in Armidale, has also shut its doors. Judge says Garry Maker, the qualified supervisor and director of the company, has surrendered the company licence and walked away from the business.
Fair Trading Commissioner Lyn Baker says Fair Trading investigators have attended the offices and homes of the directors of Kingstone Homes seeking urgent discussion on the company’s fate.
“I am calling on company directors to contact the Office of Fair Trading in the interests of consumers and tradespeople,” she says.
“It is important companies contact the relevant authorities as soon as they know they are in trouble.”
The NSW building sector was rocked last year by the collapse of the state’s largest home builder, Beechwood Homes, which was placed in receivership with debts of $20 million and more than 350 homes either partly built or yet to commence.
While Beechwood was eventually sold, the collapse left hundreds of customers in the lurch.
The latest collapses cast doubt over hopes that the Federal Government’s stimulus packages, improvements to the First Home Owners Grant and lower inertest rates would help spark some growth in the sector.
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
