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Two Western Australian building firms collapse

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Two more Western Australian building firms have collapsed amid rising construction costs which are causing companies to go bust.

WA Housing Group, founded in 2019, is a building company based in Perth specialising in custom builds and renovations.

The company entered voluntary liquidation in December 2022 and GTS advisory was appointed as liquidator.

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9news.com.au has contacted GTS advisory for comment on the liquidation of WA Housing Group.

Individual Developments is a custom home builder and property developer based in Perth.

The company which had current deals with the WA Government for community projects also entered voluntary liquidation in January this year.

A WA government spokesperson told 9news.com.au the department of communities had two current projects under construction with Individual Developments and will be working to recontract these with the State-Wide Builders Panel to ensure they are completed.

"The State Government announced a $30 million support package to assist local builders, of which several Individual Developments WA projects were eligible," the spokesperson said.

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Construction renovation work site

"Prior to being advised of the appointment of liquidators, the Department has been in regular communication with IDWA regarding progressing their active projects and the documentation required to substantiate their claim under the builder support package.

"The State Government works to support the industry and works closely with contracted residential builders in the current construction market while ensuring sensible and appropriate expenditure of taxpayer funds."

It comes after several building firms entered insolvency in Western Australia last year including New Sensation Homes, Home Innovation Builders, Pivotal Homes, Probuild, Condev Construction, Waterford Homes, Privium and Pindan Group.

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The rising construction costs haven't just plagued Western Australia, across other states building firms have collapsed like LDC Pty Ltd in Brisbane and Hallbury Homes in Victoria.

Soaring construction costs are a result of demand and pressure for materials, labour shortages, and skyrocketing inflation which hit 7.8 per cent yesterday.

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