Walk The World
One of Australia’s largest construction companies is reportedly in difficulty and many projects have stalled while contractors might lose thousands. Was this just bad management of one company or a signal of wider strife across the industry, as supply chain disruptions, costs and demand all impact the sector?
Those who watch our regular shows might not be that surprised!
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
Please consider supporting our work via Patreon: https://www.patreon.com/DigitalFinanceAnalytics
Or make a one off contribution to help cover our costs via PayPal at: https://www.paypal.me/MartinDFA
We also can received bitcoins at: 13zBL1oRib9VJu8Uc9zUGNhxKDBBgUpDN1
Please share this post to help to spread the word about the state of things….
Caveat Emptor! Note: this is NOT financial or property advice!!
🚨BEWARE OF SCAMMERS🚨
As there are accounts impersonating Walk The World in the comments on YouTube, note that our comments will have a distinguishable verified symbol. And remember that we will never message you asking you to give us money or talk to us on other platforms such as WhatsApp or Telegram
👍🏽… I wonder if Australia’s high rise tower skyline is gonna start looking like thailands ,with half built high rises cause of funding problems 😐…
Wondering if this is just the beginning…
You can release the political prisoners of January sixth or you can cut off your nose in Ukraine and get used to an angry bear we don't really see as that much of an issue.
1.4 billion of revenue last year and only made 4 million profit. Seems like a horrible business model which was always going to fail.
ProBuild has made a statement this morning that they lay the cause of thier collapse at the feet of the Australian Government.
Lockdown measures severly impacting timelines and restrictions impacting the cost of construction.
What’s that game…… oh yeh….. Jenga!!
This could be the straw that breaks the camel’s back? Unless government just keeps bailing everyone out.
Like this wasn't going to happen, blind Freddy could see this coming.
Now all those mortgage holders who have lost jobs wont be able to pay mortgages.
If the GOV steps in and starts paying peoples mortgages again while the banks are still going hell for leather credit creating we could see higher existing house prices on lower stock availability .
So they have been trading whilst they are knowingly insolvent. Now all the small contractors and workers will suffer. These directors should be stripped of there assets and sent to jail instead of blaming everyone else.
I’m puzzled by a property building company collapsed, especially one week after the International travel has been resumed. I can almost visualise high net worth individuals, full fists of cash, landing with intention to spend it on properties.
Likely The bubble burst would lead to property to fall in price right ?. Might this lead to rent prices to come down too, generally speaking that is?
And as usual the tradies lose, the suppliers go unpaid, deposits are lost, the Oz taxpayer is expected to bail out a private business … and the CEO and executive pay themselves bonuses, keep their licences to run a company and walk away. This sucks. White collar crime MUST do gaol time.
edwin doesn't understand MY unique needs 😛
When Australian business consists of tourism, hospitality and international education and a ponzi building scheme one can only hope this economic mismanagement blows up in Scum-oh's face before an election.
Thanks Mr. Martin…well here it is 23.2.22 …the second half of February and the bad news is starting to fall. The Equation…simple…Federal Government turns the easy money tap off…China falls off a cliff and in reality doesn't land and The foreign attraction thing of problematic Australia is falling…Ahh yes lets all back these Tory Liberals and let them sort it out…eh?
A couple of other South East Queensland construction companies went bust late last year too!
BA Murphy and Privium went into liquidation in December last year.
Meanwhile in Tasmania Hotondo went into administration in January this year.
There was a recent article about it by the ABC.
It seems that construction sector greed and price gouging it starting to have casualties (they will be consumed in cannibalistic fashion I expect)
Nothing new to discuss here and now. I suspect that ( Walk The World / D.F.A. )were always fully aware that such a situation was quite possibly to occur. I am sure that you remember the Patrick Steveadore / John Howard Government took hold of the union dispute to their advantage in order to demonise unions and , ultimately greatly created the division of contractors / sub contractors and diminish the number of rights and conditions of ordinary salary and wage earners , which has grown in strength over the past few decades. I have personally felt that John Howard was Australia’s worst prime minister but , now I have had a rethink and Scott Morrison is in my view unbeatable as Australia’s worst prime minister by far. I firmly believe that this upcoming election will become one of the most important in modern Australia’s history , providing that many more Australians pay much more attention to our present form of governance and understand what the the liberal government truly is and what they stand for. I am still angry at the fact that only the liberal party , National Country Party and the Labor party are the only political parties that are ever mentioned or interviewed by All forms of media. Never does one see anymore another political party mentioned or interviewed by any media source’s. One does not have to give much thought as to why this is so. With Respect , From Robert Of Australia 🇦🇺.
pretty sure the RBA has a fund specifically for nailing out builders?
Too many Maseratis. Took the good profit but not the reality. They have syphoned off so much now punish the little
My friend was scared he would have no work as high rise apartment projects are stalling. To be blunt we have been building poor quality overpriced apartments and selling them in the main to overseas buyers many of whom had children studying here. Like all dodgy business practices eventually people catch on. By the way let's not be too hard on pro build. Its a fairly regular occurrence that building companies fall over. Its not easy completing huge & expensive projects.
Many non EBA companies have already gone under due to the current 'engineered' environment the world is/has experienced. Due to this environment it would provide a perfect storm & opportunity to collapse the EBA construction industry, wipe out the CBUS super scheme for construction workers – along with other debt owed – and place us all on peanuts per week to rebuild our economy post crash… ProBuild is the tip of the spear for many more large scale companies to go under in 2022. Doesn't take an Einstein to figure this out. Thanks again for the great content your continuously providing Martin! 👍🏻
Great show Martin. The example builder is a good guide to the commercial fragilty that can be brought about by this and potentially others like it.
It would be really good to follow the progress of the insolvency questions that arise for the entity as well as other stakeholders such as creditors, emplyees lenders, all of whom can be hit with a waterfall of financial instability.
Interesting times.
Thank you
I feel a recession coming on.
Another victim of the government lockdowns and Victorians harsh restrictions there are thousands of small businesses that have gone bankrupt due to government now some of the bigger boys will go only problem there is all the suppliers, subbies , employees are the ones hit again not that the government's in this country have ever given a second thought to these people other than at tax time .
Is this Oz's Evergrande?
Queensland has its own subtropical designed houses. It's called a Queenslander
What luck for the administrators. They will be the winners here. The law works in favour of administrators they will make a killing on this gig. Tradies and sub-contractors will be the losers in a protracted and extremely expensive administration process.
Is this the start of the domino tumble? I think it is. No more greedy pig developer party. Time to start really building Australia with manufacturing and infrastructure projects. We have all the resources, educated people. Why not. Just have to get rid of the parasitic politicians that are corrupt.
Fowchi created this mess!
Unfortunately does not matter happen, government will not let it fall
Construction Companies never learn they get what they deserve
100% tax payer bail outs coming!
Thats great news for home owners!
Another that should see housing increase is war breaking out! Nothing sets Aussie housing market on fire like a world wide pandemic and or wars! Even a planet ending meteor should double the market!
dont worry, our government wiill buy them and turn them into social housing and spend a lot more money then pro build ever would on these buildings
Gosh, we were looking so closely at the fall of Evergrande that we forgot to look into our own country. 🤨 I feel bad for all those jobs and contract lost.
Hotondo Homes in Tasmania has just gone bankrupt leaving clients having paid tens of thousands for nothing. Maybe the sector does have a number of players not prepared for difficult conditions.
When you say you expect more collapses, do you mean financial like this one and/or mechanical like a few other building projects have lately?
The real estate market is collapsing taking with it large companies like this. The glory days are over and this is only the start!
What do you expect when tradies are putting their prices up so much. Friend got quoted $18k to tile a small bathroom recently – already bought the tiles, was a 3 day job for one person. . . met a 17yo recently being paid $37/hour for his first labouring job plus super etc. – no experience or qualifications – that’s the same salary as a junior doctor, more than a vet or surveyor – utterly bonkers and unsustainable.
Like a soccer hooligan song" here we go, here we go! (repeat)
If they bail out mortgages or these private companies, I’m just quitting and going on jobseeker. I don’t own a house and have been saving while everything is inflating. Now lending is tightened….. I’m not paying tax to prop up peoples investment properties. Too bad I’m not playing a rubbish game
It's quite a big canary.
But, it's onward's and upwards for residential investment property.
This is the start of things to come. Great update Martin.
Bet the South African owners commanded a charming culture thru PB. Parent should never be able to operate in Oz again, smartarse W’s.
Scott Morrison and Josh frydenberg have caused irreversible economic damage to the Commonwealth of Australia.
They should all be heading for the Gallows, not re-election.
The bigger they are
The harder they fall.
LOL
It was already planned to be sold and taken over by a Chinese company but rejected by J. Frydenberg so the deal fell through at the last hour. Some contractors are owed hundreds of thousands. Its not looking good.
https://youtu.be/LISUeayOn1Q
https://youtu.be/ARqq1ZBSpLs
https://youtu.be/ioZkk1mSs2U
https://youtu.be/yXOArtvshJ8
https://youtu.be/Nz6KZewupUU