Home buyers who purchased properties off the plans in the failed Springpark housing development in Auckland's Mt Wellington will get their deposits back before Christmas.
The company behind the 420 home development, Panama Road Developments Ltd, was put into receivership at the start of this month, leaving buyers who had paid deposits uncertain about about the future of their purchases.
Receivers Richard Simpson and David Ruscoe of Grant Thornton have written to the buyers saying their deposits will be refunded to them with interest by Christmas.
The deposits have been held in a trust account administered by a law firm.
"Following a thorough review, we have determined that it is not viable to complete the project as planned , as increased costs mean that Panama Road Developments Limited does not have sufficient funds available to it to finish the work," the receivers' letter to purchasers said.
"As the development will not be moving forward, buyers have been given the opportunity to cancel their sale and purchase agreement at an earlier date than is provided for in the contract.
"This will enable them to receive their deposit, including any interest that has accrued, straight away."
8 Comments
Central Government and Council needs to step in and increase supply via incentives or what ever.
Its a dichotomy house building is sending developers bankrupt, yet theirs a huge demand?
Can only mean the housing cost is beyond what the local economy can afford, why is this so?
Oh, I can think of several reasons why "housing cost is beyond what the local economy can afford".
- Materials costs being trousered by two cosy duopolists
- Land costs inflated by dopey zoning to the tune of 10X rural land prices
- Local TLA's extracting monopoly fees for 3 waters, development contributions, inspections and sundry Modest Fees
- Site Safety off the scale in terms of cost incurred versus value conferred
- Licensing of builders - yet another cosy Guild
Small wonder that discerning consumers are going Tiny House to end-run this hopeless schemozzle.
Why wouldn't you have bailed out of this if you were the developer?
Due to the delays they faced, the market leapt up in value, why would you build the place you said you'd sell to someone for 500k, when you can simply return their deposit and start up a new company that'll build the same house for today's price of 700k. Win win for everyone, except the original depositors, who have found that the housing market has left them well and truly behind.
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