Residential construction companies in Australia have been toppling like dominoes, and this has left many depositors in a very difficult financial position.
Like an uncontrolled demolition, construction companies have been collapsing at a rate that has not been seen for almost a decade.
Data from the Australian Securities and Investments Commission shows a gathering pace of construction insolvencies in the past three years, with 2196 builders going bust in the past financial year through to April 7, a 34 percent increase from the 1635 insolvencies recorded in the 2023 year.
For the nine-month period from July 1, 2023 to March 31, 2024, construction firms accounted for nearly 28 per cent of all insolvencies.
This figure dwarfs the…
