- There had been mounting speculation of financial woes at the company in recent times
- Comes as many builders have failed to keep up with soaring labour and supply costs
- Director Danny Coyne noted "ill timed government stimulus packages" as a headwind for the company
Perth property developer New Sensation Homes has gone into liquidation.
In recent days, there had been speculation of financial woes, with a half-built house in Bennet Springs spray-painted with the words “come pay your bills.”
At the time of publication, the developer’s website is down along with their Facebook page. However, their Instagram and LinkedIn pages appear to be live.
New Sensation Homes join a list of building companies that have gone under – such as Condev, Probuild and Pindan – despite the pandemic housing boom, with many unable to keep up with rising labour and material costs.
Mendelawitz Morton commercial lawyers director Ben Morton said in a statement that New Sensation director Danny Coyne had resolved it was in the best interest of stakeholders to go into liquidation.
“After an exhaustive examination of the company’s affairs and options, Mr Coyne considered it was in the best interests of the employees, clients (a lot of them first home buyers), subcontractors and suppliers, insurance providers and other key stakeholders to appoint liquidators,”
“He said the headwinds faced by the company in terms of rising costs, skilled labour shortages, supply delays, ill timed government stimulus packages and the tightening of indemnity insurance policies against fixed price building contracts all created the perfect storm.
“Arrangements are being made for the completion of existing builds as quickly as possible and to minimise disruption for the homeowners.”
