News reports are circling that there are troubles in the land down under. An article from ABC News Australia reports ‘Construction companies in NSW collapsing at record rate as building slowdown bites.’ Statistics, provided by ASIC, show 169 NSW-based construction companies went into administration, receivership or a court-ordered shutdown in the June quarter. This was the highest number since Q3 2015. Over the whole 2018-19 financial year, 556 construction companies went under, good for a 22% increase compared to last year. According to the Association of Independent Insolvency Practitioners president Stephen Hathway, small construction companies have been hit the hardest. However, even the giants can fall. Property giant Ralan group went under in July, owing creditors a whopping $500M, and leaving 2300 investors out of pocket. While there has been some turbulence in the housing market here in Canada, there has yet to be any high profile cases similar to the Ralan Group in Australia. As per data from the Office of the Superintendent of Bankruptcy Canada, construction insolvencies remain low, but are clearly climbing after bottoming at the end of 2017. If there’s one area where insolvencies are likely rising it’s in Vancouver, particularly for contractors and builders in
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News reports are circling that there are troubles in the land down under. An article from ABC News Australia reports ‘Construction companies in NSW collapsing at record rate as building slowdown bites.’ Statistics, provided by ASIC, show 169 NSW-based construction companies went into administration, receivership or a court-ordered shutdown in...
The views expressed are those of the author, Steve Saretsky, an Oakwyn Realty REALTOR®, and do not necessarily reflect those of Oakwyn Realty. It is provided as a general source of information only and should not be considered personal investment advice or a solicitation.