The credit crunch has caused Sydney based developers to abandon half built projects, leaving them in danger of collapse…
Developer Citadel Property Group has been forced to halt work on several properties in Australia due to lack of funding, leaving them in a precarious state.
The development of a shopping centre and 161 apartments at Berala, a commercial retail unit with 100 apartments at Liverpool and 54 apartments at Rockdale are now in doubt.
The Berala site is said to be especially vulnerable to collapse as the anchors supporting the partly built properties are unsteady. The number of postponed projects in Sydney have grown fivefold since this time last year.
In 2008 so far, 5,048 projects have stalled, compared with 1,052 projects in the first 10 months of 2007. More than half of these projects are in north-west Sydney.
Getting from A to B
Sydney’s north-west rail plan has been axed by the NSW Government, stunting plans to house another 322,000 people in the booming area by 2031 and forcing thousands of cars onto congested roads.
Transport Minister David Campbell said that the North-West Metro is to be ‘deferred indefinitely.’
Southwest Sydney residents will be the second group hurt by the State Government’s budget cuts, with plans to shelve the £500 million southwest rail link.
The Government will instead build a giant carpark at Glenfield so people can drive to the station to join already congested trains heading to the city.
The remainder of the project, a 12km heavy rail link to the southwest won’t open for at least another 10 years.
“The Government would have preferred a different decision, but we have to stabilise the state’s finances,†added Mr Campbell.
Sunshine State
The economic downturn is also having a big impact across the country in Queensland, with news that the crunch has left a £400 million hole in the budget.
Yet more public transport plans are being affected, with Brisbane’s ambitious £7 billion underground rail plan likely to be shelved because of the financial woes.
Brisbane’s mid-year budget review will be out next month.
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