New figures show the housing slowdown is biting NSW hard, with the number of construction companies going under last quarter hitting its highest level in almost four years.
Key points:
- NSW has been hit by a construction slowdown resulting in stressed companies going under at a record rate
- The president of an association representing insolvency firms has described the trend as “a spiral”
- Experts have raised concerns about the rise of “phoenixing” — where a company is liquidated to avoid paying its debts
The statistics, provided by ASIC, show 169 NSW-based construction companies went into administration, receivership or a court-ordered shutdown in the June quarter — the highest number since the September quarter in 2015.
Over the whole 2018-19 financial year, 556 construction companies went under — 101 more than the previous financial year.
Experts say it is a reflection of the state’s slowing apartment and housing market, sydney-experiencing-slowdown-in-apartment-construction/11205010″ data-component=”Link” data-uri=”coremedia://article/11205010″>with about 50,000 less apartments being constructed compared to the same time two years ago, and a marked slowdown in housing construction.
An increasing number of half-finished apartment projects are dotting the Sydney landscape, with property development giant Ralan Group — which collapsed in July owing…